Rockport Proposes Changes to Hotel Tax Grant Program to Boost Accountability, Tourism Tracking

Rockport officials presented proposed changes to the city’s hotel-occupancy tax grant program, aiming to increase accountability, track overnight stays, and better align funding with tourism promotion.

The revisions include a new online application portal for submitting requests and required documentation. Applicants would be required to use room blocks or promo codes at participating hotels and short-term rentals to document visitor stays, or provide ticket sales and registration data showing zip codes and length of stay. A point system would be introduced to evaluate applications based on factors such as overnight stays generated, community support, and promotion of Rockport tourism.

The changes emphasize sports tourism, weekday events, and data collection through tools such as Placer AI reports. Maximum funding calculations would be tied to documented room nights, using the local average daily rate of about $111. New events without prior history would be compared to similar events for initial funding levels.

Quarterly financial reports from nonprofit recipients would be required, with final reports subject to city staff review and audit. No late applications will be accepted. Payments for awards under $5,000 or events ending in October could be issued in full. The city would continue to meet existing commitments, including support for the convention and visitors bureau and the arts center, before distributing remaining funds.

Officials said the updated process draws from best practices in other Texas tourism cities and responds to state expectations for greater transparency in the use of public funds. Deadlines for the next grant cycle were discussed, with applications tentatively due by April 29 and an orientation session to follow. Council members requested additional time to review the full packet before formal action.