By JACQI LEYVA-HILL
Special to the PRESS
The South Padre Island Special Events Committee reviewed tourism spending and proposed sponsorship policy changes during its Oct. 20 meeting, emphasizing financial accountability, consistent funding standards and attracting new events.
Budget Coordinator Jose Toledo presented figures showing that 24 sponsored events received $319,155 during the 2025–2026 fiscal year, reporting 31,816 attendees and 11,326 hotel room nights.
According to the city’s presentation, those events generated an estimated $1,698,900 in hotel revenue and approximately $5.75 million in overall economic impact, or about $18 in economic activity per sponsorship dollar.
Using an assumed average nightly hotel rate of $150, the presentation calculated $135,912 in potential local hotel occupancy taxes at an 8% rate, equivalent to approximately 42.6% of sponsorship spending. These were estimates, not confirmed tax collections.
The analysis indicated that recovering the $319,155 sponsorship investment through the modeled 8% tax would require approximately 26,597 room nights, more than twice the number reported.
Special Events Committee Chairman Christian Hasbun addressed the difference between sponsorship expenditures and estimated tax recovery.
11,326 room nights. That is our current state. So we’re basically not even remotely close to cutting close with the amount that we’re putting in to what we’re getting back,” Hasbun stated.
Hasbun emphasized that the city’s $700,000 annual special-events budget should not be distributed simply because funds are available. Instead, he advocated attracting new events, spending funds responsibly and establishing a standardized process to ensure sponsorship decisions are made fairly and consistently.
Officials also discussed difficulties verifying hotel stays, short-term rentals and self-reported attendance.
During public comments, a representative read a statement on behalf of Kyra Hudson of the Shallow Sports Fishing Tournament, advocating increased sponsorship funding and more lenient eligibility requirements to encourage tourism and attract additional events.
Events Manager Luis Rios outlined proposed revisions, including a 120-day application requirement and standardized evaluation criteria.
The committee voted to recommend a primary evaluation scorecard using verified room nights, out-of-town participants and overall attendance, with a two-year transition period for existing events. Members also recommended a $25,000 cap on standard sponsorship awards.
Hasbun proposed allowing funding appeals to the Convention and Visitors Advisory Board (CVA), and Kelly de Schaun, Chief Executive Officer of Visit South Padre Island, agreed to develop the process.
Members discussed a proposed legacy-event designation for events with at least 10 years of partnership with the city. The five-year status would include continued reporting requirements and City Council oversight, but action was deferred pending revisions.
De Schaun introduced newly recruited Chief Tourism Officer Alex Thomas, highlighting his work on Mississippi’s Blues Trail project and his experience with Visit Galveston. She said Thomas was the tourism organization’s only employee currently living on South Padre Island.
Thomas will oversee visitor center operations, strengthen tourism partnerships and help develop the Certified Tourism Ambassador program and expanded promotion of the island’s music venues.
Staff will return with revised policies, an appeals process and administrative procedures. The committee’s next meeting is scheduled for Nov. 17.