Salem Tourism Promotion Area
Salem Tourism Promotion Area (STPA)
The travel industry is an essential economic driver for both the nation and the Salem region. In 2021, visitors spent $676.3 million directly in the region, which generated 6,680 jobs and $26.6 million in state and local tax revenue. On November 25, 2019, Salem City Council approved Oregon’s second Tourism Promotion Area (TPA)— a bold and visionary concept by Salem Area Lodging Association (SALA) and Travel Salem to remain competitive and not lose market share when promoting the region as a premiere travel destination. The funds generated by the STPA are used to:
- Support tourism marketing and sales efforts that enhance the region’s competitive position as a premier visitor destination, and
- Increase occupancy and average daily rates for Salem lodging proprietors
Collections for STPA funds began in January 2020 and are directed to Travel Salem, the region’s official destination organization. A nine-member advisory committee made up of Salem hoteliers works closely with Travel Salem to develop strategies to drive overnight visitation to Salem – particularly during the off-peak season (October through March) when hotel occupancy is softer than in the spring and summer months.
Salem is the second city in Oregon to establish a Tourism Promotion Area, which is also known as a Tourism Improvement District (TID). In 2012, Portland became the state’s first city to establish a TID. The Portland initiative has been highly successful, where hotel occupancy and average daily rates during the off-peak season have grown significantly since the program’s inception.
What is a Tourism Promotion Area (TPA)?
A Tourism Promotion Area (TPA), also known as a Tourism Improvement District (TID), provides a stable source of funding to a DMO for marketing and promotion efforts, with the ultimate goals of increasing occupancy and room rates for lodging businesses and increasing Transient Occupancy Tax collections. The Salem Tourism Promotion Area (STPA) is a city-approved and hotelier-proposed 2% fee assessed on guest room nights at lodging facilities within Salem city limits.
Unlike the transient occupancy tax (TOT), the funds gathered through the Salem Tourism Promotion Area (STPA) are managed by a dedicated group of hoteliers, not the city. The funds are shared with Travel Salem through the existing city structure for gathering and distributing hotel fees. Dollars generated through the STPA are restricted to promoting the region’s diverse assets with the goal to drive room-nights back to the city of Salem.
What does the Tourism Promotion Area do?
The STPA funds allow Travel Salem to strategically market the region through a variety of channels. Currently, STPA funds make up roughly 37% of Travel Salem's budget and are restricted to advertising campaigns that drive overnight visitation. In 21-22, the TPA generated an unprecedented $1 million that was used for a Seattle outdoor campaign, booking campaigns on Expedia & Sojern, multiple social media campaigns and so much more!
2021-2022 EXECUTIVE SUMMARY
During the last year, funds generated from the TPA amounted to $1,000,000 and were used for a variety of robust advertising and public relations campaigns.
Thanks to the STPA funds, advertising impressions have exploded as more campaigns roll out to showcase the Salem region as a unique tourist destination.
Below are the 21-22 campaign and results that were funded by the STPA
Portions of the TPA funds went to supporting our convention and sports marketing efforts. These include a variety of tradeshows and conferences, as well as direct promotional campaigns.
Impact & Results
Travel Salem's STPA-funded marketing and PR efforts have produced significant results for the local economy. Monthly lodging occupancy and rate data shows Marion County as having the highest occupancy rate in Oregon, and average daily rates (ADR) and revenues per available room (RevPar) are at record highs, as seen below.
STPA Committee Members
Scott Snyder — Chair
The Grand Hotel
Best Western Plus Mill Creek Inn
Phoenix Inn Suites
Hampton Inn & Suites
Days Inn Black Bear