Merced City Council approves new tourism district to attract Yosemite visitors
Merced City Council on Monday approved creating a new tourism district to help local hotels and motels attract more visitors to the city.
The Tourism Businesses Improvement District is aimed at helping businesses, such as hotels and motels, within the city touted as the “Gateway to Yosemite.” The plans don’t apply to short-term rentals such as Airbnb bookings.
“I’m in support of this. When I envision the future of District 1, I definitely see a strong tourism district,” Councilmember Jesse Ornelas said.
Monday was Ornelas’ last meeting representing District 1. Darin Dupont, who defeated Walter Smith in the November election, joins the council at its next council meeting.
Edwin Kainth, president of the Merced Hotel and Lodging Association, spoke in favor of the proposal during the public hearing.
“This TBID will give us a platform to promote Merced nationally and internationally,” Kainth said. He asked council members for a one-time $250,00 allocation from the city budget to kick-start the district, but council members did not vote on it.
Long-term funding for the tourism district will be collected from a 2% portion of each properties’ gross room rental revenue. There are about 1,115 rooms available for lodging in the city of Merced, according to a city report. In addition, the City of Merced will collect $500 every quarter, or $2,000 every year from each business.
Council voted 6-1 to approve the district with Councilmember Fue Xiong, who represents District 6, the lone dissenting vote.
Xiong said the money generated by the district will be out of the public’s control. The tourism district will be managed by a nonprofit organization acting as The Owners’ Association. “I’m not fond of that,” Xiong told the Merced Sun-Star.
Among other agenda items on Monday, the council approved moving forward with a $1.8 million construction and design project for facility upgrades at the Applegate Zoo.
This story was originally published December 5, 2024 at 1:35 PM.