Tuesday, June 10, 2025
Springfield, Missouri, is poised for a significant boost in tourism revenue as it approaches a year filled with major events and increased hotel rates. The city’s 5% hotel tax, collected from lodging establishments, plays a crucial role in funding tourism-related initiatives. While the rise in revenue is partly due to higher hotel rates, local leaders at Visit Springfield are optimistic about the potential for increased visitor numbers in the coming year.
Hotel Tax Revenue Allocation
Each year, Springfield’s 5% hotel tax is distributed among various entities to support tourism and related activities:
- 47% to the Springfield Convention and Visitors Bureau (Visit Springfield)
- 4.5% to the Springfield Regional Arts Council
- 4.5% to the Springfield Area Sports Commission
- 44% allocated for debt service on bonds related to tourism infrastructure, such as the Springfield Expo Centerstories.opengov.com
For the 2025–2026 fiscal year, the estimated revenue from these allocations has increased, reflecting the rise in hotel rates. The Arts Council and Sports Commission are set to receive additional funds, with increases of $1,400 and $5,000, respectively. The Convention and Visitors Bureau is expected to receive an extra $34,000.
Factors Contributing to Increased Revenue
Dana Maugans, Director of Sales at Visit Springfield, attributes the rise in hotel tax revenue primarily to increased hotel rates. While higher wages and operational costs have led hoteliers to raise rates, this adjustment has resulted in higher tax collections, benefiting tourism-related funding.
Looking ahead, Maugans anticipates that the city’s tourism revenue will further increase due to several significant events scheduled for 2026:
- Route 66 Centennial: As the birthplace of Route 66, Springfield is preparing for celebrations marking the 100th anniversary of this iconic highway.
- FIFA World Cup 2026: Kansas City has been selected as a host city for the World Cup, expected to draw international visitors to the region.
- U.S. 250th Anniversary: The nation will commemorate its 250th anniversary in 2026, potentially increasing domestic travel across the country.
These events are expected to drive significant traffic through Springfield, benefiting local businesses and tourism-related services.
City Council’s Role in Tourism Funding
The Springfield City Council plays a pivotal role in overseeing the allocation of hotel tax revenues. Council members review and approve agreements each fiscal year to ensure that funds are distributed appropriately among the Convention and Visitors Bureau, the Arts Council, and the Sports Commission. This collaborative approach ensures that tourism initiatives are well-funded and aligned with the city’s economic development goals.
Looking Ahead: Strategic Planning for 2026
With the anticipated influx of visitors in 2026, Springfield is focusing on strategic planning to maximize the benefits of increased tourism:
- Infrastructure Enhancements: Investing in transportation and hospitality infrastructure to accommodate a higher volume of visitors.
- Marketing Campaigns: Launching targeted marketing initiatives to promote Springfield as a key destination during major events.
- Community Engagement: Collaborating with local businesses and organizations to create a welcoming environment for tourists.
By proactively addressing these areas, Springfield aims to leverage the upcoming events to boost its tourism sector and stimulate economic growth.
Conclusion
Springfield, Missouri, is entering a pivotal period for its tourism industry. While increased hotel rates have contributed to higher tax revenues, the city is preparing for a surge in visitors due to significant events in 2026. Through strategic planning and collaboration among local entities, Springfield aims to capitalize on these opportunities, ensuring that tourism continues to be a vital component of its economic landscape.
