PO lodging tax committee gearing up for World Cup tourism surge

Port Orchard has finalized its annual lodging tax advisory committee, which reviews applications and makes recommendations on tourism funding. While the committee meets every year, its work may take on added significance as Seattle prepares to host FIFA World Cup matches in 2026.

City clerk Brandy Wallace said the 2% lodging tax, collected from hotels, motels, bed-and-breakfasts and Airbnbs, is dedicated exclusively to promoting tourism.

“The purpose of the tax is to create more economic development, tourism through the hotel piece,” Wallace said. “Once the city collects the tax, it gets held into its own fund, and in order to spend those dollars, a committee has to meet, review the applications, provide a recommendation to the council, and then the council has to review that and either accept or deny the committee’s recommendation.”

Wallace said traditional hotels have often declined to serve, prompting the city to reach out to Airbnb hosts through social media.

Mayor Rob Putaansuu said the 2026 committee includes six members — three Airbnb owners and three organizations that have received funding in the past.

Tourism dollars typically support local events such as Fathoms O’ Fun, the downtown parade, the classic car cruise and the Mustang show on the waterfront.

“The city’s finance director has allocated $100,000 of that fund towards 2026 awarding,” she said. “Applications are submitted with a budget, other revenue sources, expenses, and the amount requested from the city. The committee reviews those proposals and makes recommendations to the council.”

Wallace said the city itself is treated like any other applicant.

“The city is not allowed to use those funds for city purposes until we go through the whole committee process,” she said. “We’ve left it up to the historical applicants, which are mostly nonprofit organizations.”

With Seattle set to host FIFA World Cup matches in 2026, Wallace said lodging across the region will be in high demand.

“Lodging is going to be difficult within so many miles away,” Wallace said. “People are starting to plan and reserve now to get rooms. It will put a lot of our Airbnbs at full capacity.”

Mayor Putaansuu said the city will take steps to promote local events and capture some of that tourism activity.

“Our plan is to promote and market the events and activities in Port Orchard like the Farmers Market, Concerts by the Bay, the Night Market and Fathoms O’ Fun,” he said.

The city has also contracted with marketing firm Serotonin to develop a FIFA tourism and marketing plan.

He added that the global spotlight offers long-term benefits.

“The FIFA World Cup is putting our region on the world stage,” Putaansuu said. “Ensuring that visitors have a fun and memorable experience during their stay can have a lasting effect that brings visitors for years to come.”