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Updated 34 minutes ago
Pittsburgh's tourism agency is resuming efforts to create a nonprofit commission to attract more major sporting events to the region.
VisitPittsburgh's effort relies on boosting Allegheny County's hotel tax by 1.25 percentage points in a move that would generate $1.4 million a year for the proposed Pittsburgh Sports Commission, along with another $4.6 million annually for other initiatives.
“Anything that can continue the region's momentum with bringing more conventions and, in this case, events revolving around sports is a good thing,” Allegheny County Executive Rich Fitzgerald said.
VisitPittsburgh CEO Craig Davis said he plans to spend three days in Harrisburg next week lobbying state lawmakers to pass legislation that allows a hotel tax increase of up to 2 percentage points — even though VisitPittsburgh isn't looking to raise the tax that much at first. Davis said the proposal is backed by the Greater Pittsburgh Hotel Association.
Davis said similar legislation was proposed during the last legislative session, but it stalled. He said he's confident that it will get more traction this time.
The county's hotel tax is 7 percent, and hotel guests also pay a 6 percent state sales tax and 1 percent Regional Asset District tax.
Money from the hotel tax pays for most of VisitPittsburgh's annual operating budget of about $11.7 million.
The proposed tax increase would boost the average price of a hotel room in Pittsburgh from $118.71 a night to $120.19 a night, VisitPittsburgh said.
Davis said it could spur tens of millions of dollars in new economic activity.
For example, Davis pointed to the NCAA women's basketball Final Four, which VisitPittsburgh and other groups unsuccessfully lobbied for a few years ago. He said it costs an estimated $3 million a year to stage but has an economic impact of $20 million.
The Sports Commission's sole purpose would be to attract sporting events, freeing up VisitPittsburgh to focus on its core business of attracting and providing space for conventions hosted by national associations and other groups. The commission would operate independently of VisitPittsburgh and be run by a staff and a board of directors.
In addition to money for the sports commission, the hotel tax increase also would generate $1.6 million annually to attract more conventions, $1.1 million annually for David L. Lawrence Convention Center improvements and $1.1 million annually to upgrade parks and sports facilities so they are “tournament-level ready” for amateur events, among other things, VisitPittsburgh said.
Tom Fontaine is a Tribune-Review staff writer. Reach him at 412-320-7847 or tfontaine@tribweb.com.
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