Blog

Resource, Industry News

Beyond The Bed Tax: Unlocking Funding for Destination Development in the West

For decades, local lodging taxes, like Transient Occupancy Taxes, have been a reliable source of revenue for destination organizations. But while bed taxes still fund most DMOs, relying solely on them creates a fragile safety net, especially in rural Western communities vulnerable to seasonal, economic, and political shifts.

As destination organizations take on broader roles in destination development, stewardship, and management, rural leaders must fund non-promotional projects like trail systems, wayfinding signage, heritage preservation, and public amenities. To build resilient visitor economies and deliver high-quality visitor experiences, tourism entities must use alternative funding sources. Here are the key grant programs and revenue streams powering non-promotional development across the American West.

LONG-TERM FINANCING

Voluntary or Compulsory Tourism Assessment/Tourism Improvement Districts (TID)
To build a long-term, sustainable funding model and ensure you have the capacity to execute priority projects, we recommend looking beyond traditional grants. A Tourism Improvement District (TID) establishes a public-private partnership between local government and businesses and collects a small fee from visitors on specific purchases. Typically managed by a Destination Marketing Organization (DMO), TID participation can be voluntary or mandatory.

Connect with our partners at CIVITAS to learn more:
John Lambeth
CEO & Founder at CIVITAS Advisors
jlambeth@civitasadvisors.com

PROJECT-SPECIFIC FUNDING SOURCES

Federal Funding Sources

United States Department of Agriculture programs:
Community Facilities Programs
Offers direct loans, loan guarantees, and grants for public service buildings to attract and retain businesses that provide employment and services for residents, and for building projects for public bodies, non-profit organizations, and federally recognized American Indian Tribes to provide essential health care, education, public safety, and other civic services.

Rural Cooperative Development Grants
Helps nonprofit organizations that in turn provide technical assistance to start, expand, or improve cooperatives and mutually owned businesses in rural areas.

Rural Business Development Grants
Promote economic development and job creation projects; includes opportunities for feasibility studies, leadership training, and much more.

Rural Business Investment Program
Applicant needs to be a for-profit entity and raise a minimum of $10 million

Rural Economic Development Loan & Grant Program
Passed to local utility organizations, which then disperse funds in rural communities

Bureau of Indian Affairs:
Tribal Tourism Grant Program

National Park Service:
Outdoor Recreation Legacy Partnership Program (ORLP)
EXPLORE Act-related funding: provides funding to 1) to acquire land and water for parks and other outdoor recreation purposes in qualifying areas, and 2) to develop new or renovate existing outdoor recreation facilities that provide outdoor recreation opportunities to the public in qualifying areas.

Readiness and Recreation Initiative (RARI)
EXPLORE Act-related funding: The purpose of the program is to: 1) provide outdoor recreation opportunities, and 2) promote or support compatible land uses and avoid incompatible development in areas in the vicinity of, or ecologically related to, a military installation or military airspace, and/or to maintain or enhance disaster resilience.

Rivers, Trails and Conservation Assistance program (RTCA)
Not restricted to National Park land, support local entities in  developing projects (concept design, site plan, trails plan, cost estimating for 1-3 years)

Historic Preservation Grants
Various grant programs to assist with a variety of historic preservation and community projects focused on heritage preservation.

Economic Development Administration:
Public Works and Economic Adjustment Assistance Programs
Grants and cooperative agreements under these programs are designed to leverage existing regional assets and support economic development strategies that advance new ideas and creative approaches to economic prosperity in distressed communities, including those negatively impacted by changes to the coal economy and nuclear power plant closures.

Environmental Protection Agency:
Brownfields and Land Revitalization Funding:

Bureau of Land Management:
Foundation for America’s Public Lands (official charitable partner)

Recreation and Visitor Services Grant (FY 27 TBD)
EXPLORE Act-related funding: all project submissions must specifically enhance recreation and visitor services on BLM-managed public lands and improve the overall experience for BLM visitors

U.S. Forest Service
Connect with your local Recreation Advisory Committee to see if funding can be unlocked for trail/outdoor recreation-related projects.

State Funding Sources

State and regional destination management organization grant programs, e.g.:

State transportation agency grant programs, especially for grants focused on non-motorized transportation and public transportation, e.g.:

State Parks and Recreation Department grants:

State Fish and Wildlife Department, e.g.:

Special District Funding Sources

Port Authorities, e.g.:

Funding from Private Foundations and Corporations

National foundations, e.g.:

Regional/state charitable foundations, e.g.

Local (large) corporations, especially those related to outdoor recreation, e.g.:

Banks, e.g.:

Utility providers, e.g.:

Additional Sources

If you have another funding source that you recommend, please email: nicole@crosscurrentcollective.com

GENERAL TIPS FOR ACQUIRING (GRANT) FUNDING

Relationship Building: Beyond Funders
Connect with local organizations and community leaders early and often. Take the time to understand their goals and active initiatives. Support their efforts whenever possible, and don’t hesitate to ask for their backing in return. Joint applications consistently outperform single organizations going at it alone.

Talk Openly About Funding
Leverage your peer networks to discover where others have successfully secured funding—and pay it forward by sharing your own wins, strategies, and timelines. Transparent conversations elevate the entire community.

Don’t Hesitate to Ask for Help
Reach out to the designated grant officer with your questions or even an early narrative draft. Grant officers are often an invaluable resource; their feedback can save you countless hours and significantly strengthen your submission.

Grant writing: Hone the Skill or Hire the Talent
Writing a winning grant takes strategy, time, and practice. Tap into your network to see if a partner organization can loan a seasoned grant writer. If you’re submitting a collaborative application, consider pooling resources to hire a local expert.

This page last updated October 19, 2026.  We will update this information periodically. If you have any questions or need support with your project, please contact us at info@crosscurrentcollective.com.