Updated: June 10, 2025

What is a Tourism Improvement District?

This Tourism Improvement District (TID) is a hotel-led investment to attract more overnight visitors, and more business, to Minneapolis. It is a self-assessment by hotels to generate new, dedicated funding for specific tourism activities.

Are there any TIDs in Minnesota?

The Minneapolis TID is the first in our state. This form of supplement (self-assessed) funding only became an option after Minnesota passed enabling legislation in 2023. However, TIDs have been used throughout the U.S. since the late 1980s. There are currently over 200 communities in more than 20 states with TIDs.

What are some other U.S. cities with TIDs?

Why does Minneapolis need a TID?

Minneapolis has recovered more slowly from the pandemic than many of its peer cities. Overall hotel occupancy remains lower, especially during holidays and winter. And tourism funding lags compared to the cities we compete against for meetings, conventions, sporting events and more.

The TID gives our hotels, and our city, an additional tool to invest in new tourism campaigns, events and strategies to attract more overnight visitors.

How will the TID work?

At hotels in Minneapolis with 50 or more rooms, the TID will collect 2% of room revenue only (it excludes any other expenses like food, drink, etc.) and will appear on the hotel guest’s bill at checkout. The funds stay in Minneapolis and are reinvested in tourism efforts. A 2% charge is the industry average for TIDs across the country.

Will this raise taxes for Minneapolis residents?

No. This is not a tax on residents or city resources. The assessment applies only to hotel room revenue and is paid for by hotel guests.

How will the TID benefit Minneapolis residents?

More visitors mean more spending at local businesses, more opportunities for workers, and more tax revenue to help fund essential city services. By increasing tourism to Minneapolis, the TID helps build a healthier, more resilient economy for everyone in Minneapolis.

How much money will the TID generate?

The Minneapolis TID is projected to generate approximately $7 million annually. These are new, supplemental dollars focused solely on growing the city’s visitor economy.

What will the funds support?

TID funds can be invested to support new marketing and sales initiatives, as well as new special events and activations. Funds can also be used for tourism and hospitality workforce development. The goal is to bring more overnight visitors for meetings, events and conventions to our city.

Who will oversee the TID?

The TID will be managed by a governance committee made up of Minneapolis hotel leaders. The governance committee makes decisions about the use of the funds and will work closely with Meet Minneapolis to execute the plan.

If TID funds are for tourism, how will Meet Minneapolis be part of the TID?

While the TID will be led and managed by Minneapolis hotel leaders, Meet Minneapolis will be responsible for carrying out the tourism-related marketing and sales initiatives prioritized by the Minneapolis hotel community. In addition, Meet Minneapolis will handle the finances.

What are the next steps?

In 2024-25, a majority of hotel owners in Minneapolis agreed to form a TID. In May 2025, an ordinance authored by Council Member Katie Cashman (and co-authored by Council Member Michael Rainville, Council Member Robin Wonsley, Council Member Andrea Jenkins and Council Member Jamal Osman) was brought forward to the Minneapolis City Council. A public hearing was held on May 20, 2025, where the ordinance was advanced. On June 5, 2025, the ordinance was approved unanimously. Next, the Minneapolis hotel community will create a governance committee, and funds will start to be collected and invested.

If this is a self-assessment, why involve the city council?

The state statute requires TIDs to be designated by a local city or county. That means Minneapolis hotels need to petition city hall through the ordinance process to add this charge to the cost of a hotel room.

Why is tourism important for Minneapolis?

Tourism is an essential economic engine for our city. Visitor spending fuels local businesses, supports jobs, and generates tax revenue that helps pay for services like public safety and infrastructure. By investing in tourism, we’re building a healthier economic foundation for our entire community.