The Truth About Tourism, Taxes, and Community Investment

Recent statements by State Representative Javadi wrongly suggest that the hospitality industry isn’t paying its fair share in taxes and that tourism is a burden on coastal communities. These claims ignore the significant economic contributions of tourism and misrepresent the facts. It’s time to set the record straight.

Tourism Pays Its Fair Share—And Then Some
Tourism-related businesses generate millions in local and state tax revenue annually through property taxes, business taxes, and the Transient Lodging Tax (TLT). These funds directly support infrastructure, emergency services, and community development.

The current 70:30 TLT allocation ensures tourism remains a strong economic driver, benefiting both visitors and residents. Many coastal communities already have flexibility in spending nearly half of their TLT revenue (52% unrestricted), including for public safety. Reducing tourism funding risks unintended consequences—fewer visitors, lower tax revenue, and diminished support for essential services.

The Real Issue Behind Housing Costs
Placing blame on short-term vacation rentals (STVRs) for high housing costs oversimplifies the issue. The real drivers are restrictive zoning laws, limited land availability, and high construction costs. Even eliminating STVRs wouldn’t create enough housing to meet demand or lower costs.

Instead of targeting STVRs, policymakers should focus on workforce housing incentives and streamlined development processes. Meanwhile, STVRs continue to generate tax revenue, support local jobs, and boost small businesses—contributions that shouldn’t be overlooked.

Tourism Is an Economic Engine, Not a Burden
Tourism fuels thousands of jobs and sustains local businesses. While some claim that cities have excess tourism promotion funds, the reality is that these funds help communities remain competitive. Those sitting on TLT dollars should implement strategic plans to drive tourism year-round, ensuring full-time employment and long-term economic benefits.

The idea that our state's natural beauty "markets itself" is misleading. Other destinations actively promote their attractions, and without continued investment in tourism marketing, we risk losing visitors—and revenue—to competing regions.

Public Safety and Infrastructure: Tourism Dollars at Work
Tourism does create demand for public safety services, but TLT revenue already supports these efforts. Law enforcement agencies benefit from these funds, and shifting money away from tourism promotion could ultimately shrink the economic base that funds public services. Sustainable budget management and alternative funding sources, like grants and public-private partnerships, should be explored instead.

A Smarter Path Forward
Tourism is not the problem—it’s a critical pillar of our coastal economy. Rather than jeopardizing a thriving industry, we should focus on strategic, long-term solutions for housing and infrastructure. With thoughtful planning, we can ensure tourism continues to benefit both residents and visitors alike. | Jason Brandt, President & CEO, Oregon Restaurant & Lodging Association