Supervisors approve tourism fund request

By Sophia Clifton

At a Jan. 13, Loudoun County Board of Supervisors finance committee meeting, supervisors took a close look at how tourism dollars are being used, and whether some of that money should go toward better understanding who visits Loudoun and why.

The discussion centered on a request from Visit Loudoun, the county’s official tourism organization, to use $75,000 from the county’s Transient Occupancy Tax reserve fund to pay for a visitor profile study. The study would analyze who comes to Loudoun County, where they come from, what they do while they’re here, and how the county compares to other destinations.

After reviewing the proposal, the Finance/Government Operations and Economic Development Committee voted unanimously to recommend approval to the Board of Supervisors, with Supervisor Kristen C. Umstattd (D-Leesburg) absent. County staff also backed the proposal, stating, “Staff concurs with the FGOEDC recommendation.”

The funding request involves the Restricted Use Transient Occupancy Tax, a tax paid by visitors who stay in hotels, short-term rentals, and similar lodging in Loudoun County. Under an agreement between the county and Visit Loudoun, the tourism group receives 75 percent of projected tourism tax revenue each year to promote the county and support tourism-related services.

When actual tax collections come in higher than expected, Visit Loudoun is allowed to ask for a one-time use of the excess funds, as long as the money is used for a specific purpose tied directly to tourism.

County staff confirmed that this request meets that requirement, noting that Visit Loudoun’s proposal is “for a specific one-time purpose that relates directly to Core Tourism Services.”

Visit Loudoun officials say the study would give them a clearer picture of today’s visitors and help guide future decisions. According to the staff report, the goal is “to gain a deeper understanding of Loudoun County’s visitors,” including both domestic and international travelers.

The research would look at visitor demographics, travel motivations, spending habits, and perceptions of Loudoun compared to other destinations. It would also explore how likely visitors are to return or recommend Loudoun to friends and family.

The final product would include a detailed written report, a summary of key findings, and presentations for local stakeholders. Results would be broken out to show differences between U.S. and international visitors.

County staff described the expected outcome as “actionable insights”—information that Visit Loudoun can actually use to sharpen its marketing, improve visitor experiences, and better support local businesses that depend on tourism.

While the requested $75,000 is more than the extra tourism tax revenue collected during the most recent fiscal year, staff said the overall tourism fund is healthy enough to cover the expense.

The staff report notes that “the RTOT year-end fund balance was $56,357” for FY 2025, but the bigger picture tells a different story. “The total cumulative fund balance for the RTOT Fund at the end of FY 2025 is $4.9 million,” according to the staff report.

County policy requires that at least 10 percent of tourism tax revenue be kept in reserve— roughly $479,000. Even after approving the study, the fund would remain well above that minimum.

Because the request is a one-time expense and would not affect ongoing grant programs or required reserves, staff said it could be approved without financial risk to the county.

At the Board of Supervisors’ Jan. 21 business meeting, the visitor profile study request passed, along with other consent agenda items, in a 6-0-3 vote with Supervisors Kristen Umstattd, Mike Turner, and Koran Saines absent.

Visit Loudoun plans to move quickly. The proposed timeline calls for the study to be completed by early to mid-March 2026, with results shared publicly at Visit Loudoun’s annual meeting in April.

Supporters say the study could help Loudoun make smarter choices about how it attracts visitors —and how tourism dollars are spent. By better understanding visitor behavior and preferences, county leaders hope to strengthen Loudoun’s position as a destination while supporting wineries, farms, historic sites, restaurants, and other local attractions.

The study would also look at how visitors view Loudoun compared to nearby destinations, an important factor as the county competes regionally for tourism dollars.

There was little sign of opposition during the finance committee’s review, and both staff and supervisors appeared comfortable treating the study as a strategic investment rather than an ongoing cost.

With strong fund balances and staff support, the study will move forward, giving Visit Loudoun a clearer snapshot of who’s visiting the county and how Loudoun can continue to grow its tourism economy.