Lodging Tax Grant Program

The Town of Friday Harbor Lodging Tax Grant Program is a locally administered funding initiative established by the Town Council to support tourism-related activities within Friday Harbor, Washington. The program is funded through a portion of the Hotel Motel Excise Tax collected on short-term lodging stays within the town. Oversight of the program is provided by the Lodging Tax Advisory Committee (LTAC), a body composed of council members, lodging representatives, and community appointees. The LTAC reviews applications and makes recommendations to the Town Council, which retains final authority over funding decisions. The program operates annually, with funding levels determined each year based on lodging tax revenue. The primary purpose of the grant program is to promote tourism and increase economic activity within Friday Harbor by supporting events, marketing initiatives, and tourism-related facilities. Eligible uses of funds include tourism marketing, operation and promotion of festivals and special events designed to attract visitors, and support for tourism-related facilities, particularly those operated by nonprofit organizations or public entities. The program emphasizes activities that generate overnight stays and economic benefit to the town. Preference is given to proposals that encourage visitation during shoulder and off-peak seasons, although summer activities may be considered if they avoid high-traffic periods. Funding is provided on a reimbursement basis, meaning that awarded funds are distributed after expenses have been incurred and documented. Eligible expenses include marketing and promotional efforts, performer fees, travel expenses related to events, and venue rentals when directly tied to tourism outcomes. Certain costs are explicitly excluded, including food, beverages, prizes, resale items, and general fundraising activities. Projects must be completed within a single calendar year and align with the 2027 funding cycle, as expenditures outside the approved timeframe are not eligible for reimbursement. Eligibility for applicants is broad and inclusive, allowing for-profit businesses, nonprofit organizations, public agencies, and even groups of individuals to apply. Applicants must demonstrate that their proposal will promote tourism within Friday Harbor and comply with both state law and municipal requirements. Proposals must also meet operational standards, including obtaining necessary permits and licenses, and must demonstrate a clear plan for marketing, implementation, and measurement of tourism impact. Applicants are required to identify a responsible contact person and may need to provide documentation such as proof of nonprofit status or partnership agreements. The application process requires submission of a completed application form, supporting documentation, and a detailed budget. Applicants must submit both an electronic copy and multiple hard copies by the stated deadline. An optional pre-screening process is available for applicants seeking feedback prior to final submission. Following submission, applicants may present their proposals to the LTAC, which evaluates applications based on criteria such as potential economic impact, marketing strategy, innovation, feasibility, and alignment with program goals. Final funding decisions are made by the Town Council after considering LTAC recommendations. Grant recipients are required to enter into a formal contract with the Town and must comply with reporting and documentation requirements. This includes submitting detailed reimbursement requests with invoices and proof of payment, as well as completing a visitor attendance report that tracks tourism impact metrics such as visitor origin, lodging usage, and total attendance. Reporting deadlines extend into early 2028 for the 2027 grant cycle. The program is recurring annually, with a structured timeline that includes application deadlines, review periods, and council approval stages.

Prioritize off-season tourism impact; clearly demonstrate measurable visitor increases; emphasize overnight stays and economic return; align marketing strategy with off-island audiences