Rockport Overhauls HOT Grant Program, Prioritizes “Heads in Beds” and Tourism ROI

City officials have introduced major reforms to the Hotel Occupancy Tax (HOT) grant program, focusing on greater accountability, transparency, and proven tourism impact.

The changes emphasize that HOT funds, collected at 7% from hotels and short-term rentals, must primarily generate overnight stays (“heads in beds”). Events and programs must now clearly demonstrate that they attract visitors traveling more than 70 miles.

Key New Requirements

• Applications and reports are submitted via a new online portal on the city/CVB website.

• Mandatory use of promo codes or room blocks for tracking stays.

• Documentation of ticket sales, registrations, and visitor surveys.

• Signed guidelines on community impact, branding, and promotion of Explore Rockport Fulton.

• Detailed final reports are subject to a city audit.

• No late applications accepted.

ROI-Based Funding
Grants will be calculated using verified room nights and an average daily rate of $111. Maximum funding is determined by total verified room nights × $111 ÷ 7 (the city’s tax share). Placer AI data and visitor surveys will supplement tracking.

2026–2027 Priorities

• Emphasis on sports tourism.

• More Monday–Thursday events to balance the calendar.

• Centralized CVB advertising for the entire destination.

• Three-year model pushing events toward self-sufficiency.

• New events benchmarked against similar past programs.

Timeline and Process
Applications are due May 29, 2025. A review team will evaluate submissions in early June, with recommendations going to the City Manager and then the City Council for final approval.

The projected grant budget is $1–1.5 million. Leftover funds will roll forward. Officials stressed there is no entitlement to funding; only projects with strong, documented tourism ROI will be supported.

Additional notes from the meeting:

• Short-term rentals are eligible via promo codes; RV parks generally are not, unless they have cabins.

• Advance funding is possible for larger events; smaller grants under $5,000 may be paid upfront.

• All HOT-funded advertising must route through the CVB.

City leaders described the reforms as a necessary shift to protect the program amid statewide scrutiny and ensure responsible use of public funds. Full guidelines and applications will be available on the city website.