The Sedona Chamber of Commerce and Tourism Bureau has formed a business improvement district with nine local hotels to fund its tourism promotion efforts, Skift has learned.

Earlier this year, the tourism bureau severed its partnership with the City of Sedona because its local government wouldn’t allow it to spend lodging tax funds on tourism promotion. The Sedona City Council put the breaks on it in 2021 because residents were frustrated with overtourism.

Under Sedona’s business improvement district, member hotels collect assessment fees from guests. The collected funds must be put toward programs and activities that support its members.

By spring, the tourism bureau expects it will have raised enough funds to develop an “ambitious” summer advertising campaign, the bureau said. The founding members will have to approve it, and they will receive special promotion visibility. The founding hotels combined consist of 800 rooms.

Tags: arizona, overtourism, sedona