San Antonio Budget Work Session: Hotel Tax, Conventions, Arts, Tourism – September 2, 2025

The San Antonio City Council convened a budget work session on Tuesday, September 2, 2025, at 2:00 PM to receive presentations on the proposed Fiscal Year 2026 budgets for the Convention & Sports Facilities Department, the Department of Arts & Culture, and Visit San Antonio. Presentations covered hotel occupancy tax trends, the expansion needs of the Henry B. González Convention Center, deferred capital projects, proposed fee increases, arts funding allocations, and marketing strategies to maintain San Antonio's competitive edge.

Consent Calendar

• No consent calendar items were presented or voted upon during this work session.

Public Comments & Testimony

• No public comments or testimony were recorded in the transcript.

Discussion Items

• Hotel Occupancy Tax Overview: Justina Tate, Budget Director, reported that the city receives 9% of the 16.75% hotel occupancy tax, with 7% allocated to conventions, the Alamo, tourism (Visit San Antonio), historic preservation, and arts/culture. Projected fiscal 2025 collections increased 4% over 2024, attributed to short-term rental compliance. Fiscal 2026 is projected to increase 2.6%.
• Convention Center & Alamodome Update: Patricia Moscoso–Cartos presented a 2026 proposed budget of $91.9 million, including $59.2 million for operations, $2.9 million for Visit San Antonio incentives, $1.4 million for the Carver Community Cultural Center from the general fund, $4.4 million for a state reimbursement program, and $23 million in capital projects. The team reported that since 2019, the Convention Center has lost $700 million in potential business due to space constraints. Council members requested written justification for the urgency and costs of the $23.3 million in capital projects, including escalator/elevator replacements ($8.9M), HVAC renovation ($3.9M), and Alamodome upgrades ($3.3M).
• Proposed Fee Increases: Staff recommended increasing the Convention Center rental fee by 3% (first increase since 2016, generating $39,000) and raising the ticket access fee from $1–$2 to $3–$5 per ticket (generating $69,500). A $2 per-ticket fee for Ticketmaster was also proposed to exempt events from that system.
• Department of Arts & Culture: Director Crystal Jones reported that the arts generate $5.1 billion in economic impact and 20,000 direct jobs. The 2026 proposed budget allocates 65% directly to artists and nonprofits through grants: $6.2 million to 41 agencies, $874,000 to 25 events, and $490,000 to 54 individual artists. Seven new public art dedications are planned; 50 public art projects are in progress through 2028. Crew noted the Executive Office used a $300 million state film incentive and a local 7.5% rebate on local spending. Councilmember Munguía and others requested district-level data on where arts funds are invested and how to better connect residents to arts resources outside the central core.
• Visit San Antonio (VSA): Mario Paz reported 39 million visitors in 2024 (equal to pre‑pandemic levels), including 2.3 million international visitors (up 15% from 2023). The 2023 economic impact was a record $21.5 billion. VSA booked 127 contracts with local artists. Staff explained that for every $1 provided to VSA, $33 in economic impact is generated (Trinity University study). Council members questioned the potential loss of convention market share to Dallas, Austin, and Houston, which are investing billions in expansions. The mayor set a goal to outcompete Chicago and Phoenix for convention business.
• River Walk Infrastructure & New RFP: Councilmember Munguía raised concerns about outdated infrastructure, trash, odor, and a pending Request for Proposals for a 10–15 year River Walk contract. The City Manager agreed to bring the RFP discussion to the full council before finalization.
• Alamodome Capital Projects & Major Events: Councilmember Core noted that a 33% increase in projected revenue from Fiscal 2025 to 2026 is driven by adding two major concerts (from five to seven). Councilmember Villagran confirmed that the Alamodome has only 49 available event dates left to sell in 2025.

Key Outcomes

• Council requested a written analysis of the $23.3 million capital projects, including justification for urgency and costs, and a breakdown of which projects could be deferred or canceled.
• Council asked for a comparative memorandum on hotel occupancy tax rates and occupancy rates in other Texas markets.
• Council requested district-by-district data on arts funding, attendance, and economic impact.
• Council asked for a written analysis of the potential economic impact of the Convention Center expansion, including year-by-year projections and how the 33‑to‑1 return ratio is calculated.
• Council asked for data on the demographics of the 150,000 hospitality workers, including their home districts and mode of transportation.
• The City Manager committed to bringing the River Walk RFP update to the council before finalizing.
• Staff agreed to explore a visitor information center partnership with the San Antonio Chamber of Commerce.
• No formal votes were taken; the session was a pre‑budget discussion to inform the final Fiscal 2026 proposal.