Council Sends Tourism Priorities Back, Seeks Cost and ROI Details

The goal is to drive tax revenue through tourism
Oro Valley’s destination marketing effort is intended to generate new revenue for the Town, primarily through increased sales tax and bed tax collections. That matters now because, as we reported last week, the Town’s latest five-year financial forecast shows a tight alignment between projected revenues and expenses. Any new, sustainable revenue source will help. Destination marketing is a discretionary initiative aimed at generating that revenue.

Two years in the making
The Town began this effort in April 2024 when the Town Council voted to discontinue working with Visit Tucson, saving nearly $500,000 annually and redirecting some of these funds to building its own destination marketing program. Much has been done since then to prepare for that, including hiring staff, launching initial tools, such as the Explore Oro Valley app to access the Explore OV page on the town's website, and commissioning visitor data analytics through Placer.ai. There have also been some early marketing and event promotion efforts.

Ready to roll
Fiscal 2027, which starts July 1, will be the year in which the “getting ready” of the past two years is put into action. Town Economic Development Director Paul Melcher told the Budget and Finance Commission last week that “we’re transitioning from plan implementation, website rollout and development,” and that the 2027 budget “really represents… emphasis on marketing and branding and getting out the word on Oro Valley.” (Source: Town of Oro Valley Tourism Advisory Commission Meeting, March 15, 2026)

One piece of unfinished business: Ranking new initiatives
One step remains: Prioritizing the recommendations from the Town’s Leisure and Travel Destination Management Plan. In February, the Council established six key criteria for selecting plan for selecting plan recommendations. (Panel below left) Using that, staff developed a scoring system that ranked te
potential initiatives, including revitalizing parks for sports tourism, developing a regional events and festival strategy, and activating Steam Pump Ranch. The Tourism Advisory Commission approved the list last week, but the Council did not.

Council wants cost-benefit detail before acting on the list of new initiatives
After seeing the list, Council Member Murphy asked, “What is this specific plan? How much is it going to cost? What’s the ROI?” Melcher did not provide those details, explaining that the plan is intended to be high level and that specific costs, scope, and expected returns would be developed later as individual projects are brought forward through the budget and implementation process. A majority of the Council disagreed. They voted 4–3 to send the rankings back to staff, directing them to return with more detailed, project-level information on each item, including scope of work, actual cost to the Town, timing, and expected impact on tourism.

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Oro Valley's Destination Marketing... A Year In... Still a Work In Progress

Still getting started
It has been a year since the town took over responsibility for destination marketing, replacing the services provided by Visit Tucson. By canceling that contract with Visit Tucson, the town saved almost half a million dollars annually. What has been accomplished to date? Well, not much, in terms of their mission: though there are a number of things that have been done.

For one, the town hired a destination marketing manager, Crystal Franke. Last week, Franke and economic development director Paul Melcher discussed with the town council what they have been doing. Their report was requested by Town Council member Mary Murphy at the February strategic planning study session.

The unstated mission: Generate sales and bed tax revenues
There is no formal mission statement for the town’s destination marketing effort.  The fact that there is no formal statement is a problem that needs to be addressed. Here's our cut what we think it is: “Drive economic activity through tourism-related events and marketing efforts to increase the town’s sales and bed tax revenue."

To date effort is far short of accomplishment
When asked directly by Mayor Winfield about what they've accomplished, Melcher didn't have much to say except that, based on post-event surveys, he estimated that the Tucson Bicycle Classic generated about $183,000 in economic activity for the town. Multiply that by Oro Valley’s 2.5% sales tax, and that event generated a little over $4,500. Melcher did not report how many hotel room nights, if any, were directly attributable to this event.

...And long on things done
Instead of reporting concrete results, Melcher focused on things they had done. They launched the Explore OV app, created an Instagram account, sponsored a cycling event, organized public art tours, began a leisure travel study, continued monthly meetings with resorts, and planned a June familiarization tour for event planners. The town plans to hold this tour in June, despite Oro Valley’s high summer temperatures. (June is a poor time to invite event planners to Oro Valley — the extreme heat alone is enough to discourage visitors.)

Council questions spending...
Vice Mayor Melanie Barrett raised concern over the large website budget, thinking it excessive. Melcher responded that while the website cost is a one-time expense, there will be ongoing annual maintenance costs of up to $25,000, and the town is still deciding whether to handle this work internally or through outside contractors. Barrett noted: “To me, that seems like a lot of money to spend on a website… hopefully, if there’s that much in the budget for a website, it will be an incredible website.”

...Membership of a "stakeholder advisory group"

Barrett and Murphy asked why there were no residents included in the stakeholder group with whom Melcher has been working. He said that this group is considered an internal working group and not open to the public. It includes the two major resorts, some arts and cultural organizations, state and federal parks affiliates, and local venues. 

The two major resorts — the Hilton Tucson El Conquistador and Westward Look — were referenced indirectly during the presentation as part of the stakeholder group, but there was no specific discussion of their role, performance, or involvement beyond general mentions of resort support. These resorts are working on their own with Visit Tucson for their destination marketing.

Still more activities on the horizon
Looking ahead, steps include completing the leisure travel study within the next six to eight months, which will guide future marketing and venue improvement decisions. Development of a dedicated Explore Oro Valley tourism website will follow, timed to launch with the study’s completion. As mentioned, in June, the the town will host familiarization tours for event planners to showcase local venues and resorts. Additionally, the town will work with Discover Marana on regional tourism initiatives such as developing a joint five-year tourism strategy, and promoting outdoor events such as the Tucson Bicycle Classic, which began in Marana and finished in Oro Valley.  The goal is to position the region as a cycling destination and training hub, attracting professional teams and visitors looking for safe roads, good weather, and scenic routes.

Maybe someday these efforts might pay… maybe…
It clear that the town’s destination marketing effort is still in its early stages. While they have taken steps to set up tools like an app, a social media presence, and public art tours, concrete results — such as measurable increases in room bookings or significant economic impact tied directly to their efforts — have not yet happened. Much of what they have presented so far is groundwork, with key initiatives like the leisure travel study, website development, and formation of a tourism advisory board still in progress. Their plans appear to be long-term, with major outcomes likely years away rather than near-term. For now, the effort remains a work in progress.

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