County leaders debate effective use of lodging tax for tourism growth

Scotts Bluff County officials are reevaluating the use of lodging tax revenue to better support the local hotel industry and stimulate economic growth. During the Scotts Bluff County Commissioners Meeting on April 7, 2025, discussions highlighted the need for a strategic plan that prioritizes the interests of hotel owners and maximizes the return on investment from tourism funds.

Currently, the county collects nearly $500,000 annually from lodging taxes, but a significant portion of these funds has been allocated to public relations rather than directly benefiting hotels. Officials emphasized that the primary goal should be to help hotels fill their rooms, which in turn would generate more lodging tax revenue. This revenue could then be reinvested into community projects and enhancements that benefit the broader area.

Commissioners pointed out that understanding the occupancy patterns of local hotels is crucial. They proposed asking hotel owners about their peak and off-peak times to tailor marketing efforts effectively. The idea is that increased hotel occupancy would lead to more visitors to local attractions, such as museums and events, thereby creating a positive cycle of economic activity.

Despite the potential for significant revenue generation, the county has not fully utilized the lodging tax funds. In 2024, for example, the county generated between $439,000 and $500,000 but only spent approximately $307,000. This discrepancy raises questions about the effective allocation of resources and the need for a more focused approach to tourism funding.

Moving forward, the county aims to engage with hotel owners to develop a strategic plan that aligns tourism spending with the goal of enhancing hotel occupancy. This initiative is expected to not only support the hotel industry but also boost the overall economy of Scotts Bluff County.