New Orleans Tourism Support Assessment Executive Summary
Tourism Support Assessment
EXECUTIVE SUMMARY
A modest increase to our Tourism Support Assessment will amplify the incredible work we have done to establish New Orleans as a world-class destination. This strategic investment will enable us to attract more visitors year-round, reach new potential travelers, stimulate visitation at cultural attractions and institutions, boost restaurant patronage, and create fresh opportunities for our musicians, artists, and small businesses.
These collective investments strengthen our entire hospitality ecosystem and improve quality of life throughout New Orleans—benefiting residents, local businesses of every size, independent operators, and major hotels alike. When tourism thrives, our whole city prospers.
Where We Are: Punching Above Our Weight
New Orleans is recognized across the globe as a top-tier visitor destination. In the hospitality industry, we know better than anyone that this is a reputation earned, not granted. At New Orleans & Company, we work to sell New Orleans as what we know it is—the most remarkable, unique, and welcoming city in the world. We also know that what makes New Orleans a better place to live makes it a better place to visit.
Every day, we fight for your piece of the global tourism pie. In an increasingly competitive market, cities like Nashville, Austin, and Miami are spending millions more than us to attract the same visitors you depend on. But look at what we've accomplished together: In the last 5 years alone, New Orleans has hosted the Bocuse d'Or, the NCAA Final Four, Miss Universe, Taylor Swift's Eras tour, and our 11th Super Bowl in addition to thousands of meetings, conferences, conventions, tradeshows and groups. Our Disney partnership is introducing New Orleans culture to millions through “Tiana's Bayou Adventure.”
We have secured thousands of positive media stories and recognition from Conde Nast Traveler, Time Out, Southern Living, and the New York Times, to name just a few media outlets. The upcoming Michelin Guide to the American South and the return of Bocuse d’Or will spotlight our culinary scene internationally—the kind of coverage that helps fill your rooms.
This work, our partnership with British Airways, and our global representatives are instrumental in our efforts to continue building international tourism, especially during a time when international travel to the U.S. has declined significantly across the country. While other American cities are losing international visitors, our targeted investments are positioning us to capture more of this critical, high-spending market segment as global travel patterns continue to recover.
How It Works: A Partnership That Pays
The Tourism Support Assessment (TSA) is a collaborative initiative funded by and for the hospitality community—not a tax imposed on you, but a strategic partnership between New Orleans hotels and New Orleans & Company paid for by hotel guests. Per Act 410 of the 2013 Louisiana Legislature, any adjustment requires approval from a 2/3 majority of the Downtown and Garden District hotel community, with each hotel's vote weighted by room count.
This ensures smaller properties have a voice while recognizing larger properties' greater investment. The assessment is paid by guests—not hotels—at just 1.75% of the room rate. A modest increase of .75% to 2.5% (an additional 75 cents on a $100 room) would expand our marketing and sales firepower without meaningfully impacting guest demand. Revenue flows exclusively to New Orleans & Company for destination marketing, sales and event promotion that will bring visitors to your door.
This model works because it creates shared investment in shared success. Near-unanimous participation ensures no one carries disproportionate weight, and it is the same approach
successful destinations nationwide use to stay competitive in an increasingly crowded marketplace as cities make record investments in community attractions and assets and battle for marketshare.
Partnership has privileges.
Hotels participating in the TSA receive:
Direct business: Sales leads and group referrals
• Marketing reach: Inclusion in all official guides, online listings, advertising, and social media
• Sales support: Site visits, familiarization trips, and tradeshow opportunities
Public Relation benefits: Promotional support and destination collateral access
• Market intelligence: Industry research and competitive data
Non-participating hotels lose all New Orleans & Company membership benefits—effectively marketing themselves alone while competitors benefit from collective promotion.
Competitive Landscape: We're Winning, But We Are Outgunned
New Orleans is uniquely Built To Host, but we compete daily against destinations spending 3 times more on marketing and sales efforts. We've achieved remarkable results—ranking as one of the top 5 fastest-growing tourism economies with 2024 gains of 5.2% in occupancy, 1.3% in ADR, and 6.6% in RevPAR. Yet despite this growth, we still rank 22nd for occupancy, 23rd for rooms sold, and 22nd for industry revenue among major destinations. Our competitors don't just match our TSA-some impose assessments over 3 times larger, and have higher base funding. The structure we deployed in 2014 has become industry standard because it works. Cities serious about tourism invest accordingly.
Every advantage matters. From Television appearances to supplemental police patrols, these investments drive visitor demand and
differentiate New Orleans. For over a decade, the TSA has helped us punch above our weight, fueling growth for the city of New Orleans and state of Louisiana. A modest increase is not just about marketing and sales—it is about maintaining community improvements that make us more appealing and attracting meetings, conferences, conventions and events to our community. A safer, cleaner, more accessible city attracts more visitors and creates better experiences that drive repeat business. The choice is clear: increase our investment to match our ambitions, or watch better-funded competitors erode our market share. We have proven what we can achieve with limited resources. A slight TSA adjustment keeps New Orleans competitive and this industry growing.
While
Competing Without Corporate Backup
We Hear You: Addressing Your Bottom-Line Concerns
We understand the worry: “Will this fee drive guests away?” The data says no. A .75 percentage point increase means an extra $1.50 on a $200 roomless than mosts guests spend on a cup of coffee. More importantly, this modest fee generates exponentially more value by empowering us to drive increased citywide demand.
Since the assessment applies uniformly across all hotels who participate, no property gains a real pricing advantage by opting out—you would simply lose marketing benefits and sales leads while competitors benefit from collective promotion.
Here is what guests actually base hotel decisions on after choosing New Orleans: location, amenities, reviews, and brand preference. A $1-3 fee likely does not factor into these decisions, but the marketing this modest increase funds directly drives the demand that fills your rooms.
Bottom Line: The Case for Continued Investment
New Orleans tourism has achieved remarkable milestones—19 million visitors in 2024, top-5 growth nationally, strong occupancy and RevPAR gains. While 2025 has presented its share of challenges, our fundamental strength remains: we are a worldclass destination that continues to outperform our funding level.
The reality is stark: The space we're in is more competitive than it's ever been. When the market tightens, the best-funded destinations win the competition for visitors, conventions, and major events.
This modest TSA increase is about ensuring we have the resources to compete consistently, regardless of market conditions and the increased cost associated with delivering results for you. Strong destination marketing and sales, enhanced safety measures, and community improvements do not just drive bookings in boom times; they provide stability and competitive advantage when the market softens.
The investment delivers tangible value: more group business referrals, stronger international marketing as that segment recovers, enhanced guest experiences, and community improvements that make New Orleans more appealing. Without it, we risk falling further behind competitors who are already outspending us significantly.
We have proven what unified investment can achieve. The TSA transformed New Orleans into a competitive player despite resource constraints. Now we choose: equip ourselves to compete on more equal footing, or continue trying to outperform better-funded destinations with one hand tied behind our backs.
The work ahead requires resources that match our shared ambitions. Support this modest increase and let's keep competing together.
