Eastern Idaho earned nearly $2 million in lodging tax revenue. How businesses can benefit

Rett Nelson, EastIdahoNews.com

A geyser at Yellowstone National Park, one of numerous recreational sites that brings travelers through eastern Idaho every year. | Courtesy Yellowstone Teton Territory

IDAHO FALLS – Tourism is Idaho’s third-largest industry, generating $475 million in tax revenues annually, according to the U.S. Travel Association. Local businesses are benefitting in a big way.

The Idaho Travel Council awards an annual grant to regions across the state, which is funded through a 2% tax on sales at hotels, motels, vacation rentals and private campground accommodations. Over the last fiscal year, the eastern Idaho region — which includes Bonneville, Fremont, Teton, Madison, Jefferson and Clark counties — earned a projected $3.05 million.

The grant awards 45% of that tax revenue back to each region at the end of each fiscal year.

Yellowstone Teton Territory is eastern Idaho’s regional tourism board, which applies for and manages this grant. Steve “Dutch” Dutcher, the general manager of Action Motor Sports in Idaho Falls who’s also a regional representative for the Idaho Travel Council, tells EastIdahoNews.com the grant amount for eastern Idaho this year was nearly $2 million. It will be awarded to YTT at the end of July once the fiscal year is complete.

Businesses that are members of YTT can receive a portion of these funds to promote themselves at YTT events throughout the year.

“YTT will buy booth space at a lot of different shows throughout the country,” Dutcher says.

A sportsman’s expo is held in Denver every year and businesses across the country — including many in eastern Idaho — attend that event. The Sand Sports Super Show –a similar event in Costa Mesa, California — and an RV show in Sandy, Utah, also attract local businesses.

“If you want to attend … YTT will cover your travel, hotel and food expenses (so you can have booth space to talk about your business at these events),” Dutcher says.

It’s an underused perk that many people don’t know about. Just over 100 businesses are members of the group. For $100 a year, Dutcher says other businesses can take advantage of this opportunity.

Action Motor Sports hosts a snowmobiling event at Sawtell Mountain Resort in Island Park every year that attracts hundreds of people from throughout the Midwest. Those who attend stay at the resort, perpetuating lodging tax revenue.

Dutcher says the lodging tax revenue has steadily increased in eastern Idaho since 2018. The grant amount YTT received that year was around $425,000. It increased to more than $700,000 in 2021.

“Last year was just shy of $1.7 million,” Dutcher says.

Record attendance at Yellowstone National Park and Island Park in 2021 as a result of the COVID-19 pandemic played a partial role in the increase at that time.

Data from the Idaho Department of Commerce shows 81% of travelers to the region in 2024 are repeat visitors. Dutcher cites this as the reason for the continued increase year after year amid inflation and other economic factors contributing to rising costs.

“During COVID, people came out and saw Idaho and experienced it firsthand and they keep coming back,” he says.

YTT partners with multiple organizations through a cash match program, meaning there will likely be much more funding available than the grant amount for advertising or events.

Though YTT is required to promote all businesses in the region, Dutcher says those who are members of the tourism board have a greater influence on how that money is used. To sign up or learn more, click here.