CARLSBAD — The Carlsbad City Council has officially dissolved a nearly two-decade-old tourism district, marking the final step in transitioning to a new model for promoting tourism in the city.
The council adopted an ordinance on June 10 that disestablished the former Carlsbad Tourism Business Improvement District. The move follows the April 2023 creation of a new district, supported by a majority of the city’s lodging businesses, with a “more modern authorization structure.”
The original tourism district, formed in 2005, increased its assessment from $1 per room per night to 2% of the nightly room rate. The change, requested by hoteliers, expanded the budget from $1.5 million to $6.5 million but also required a new operating framework to support the increased funds and scope of work.
As part of the transition, the council formed a new district under the city’s Property and Business Improvement District Law of 1994 on April 18, 2023, and selected Visit Carlsbad to serve as the administrator for a five-year term beginning July 1, 2023.
To formally dissolve the former district, all remaining funds — approximately $7 million — had to be spent. The assessment ended on June 30, 2023, and Visit Carlsbad continued executing services under an extended agreement until all funds were expended by June 30, 2024.
By October, all services paid for by the previous district had been completed.
The old district’s advisory board met for a final time in November 2024 to confirm the use of remaining funds and unanimously recommended dissolution. The council expressed its intent to disband the district in April, held a public hearing on May 20, and unanimously approved the ordinance on its second reading this month.
Economic Development Director Matt Sanford said all 484 of the city’s lodging businesses were notified of the change, and no opposition to the dissolution was received.
“There is no immediate fiscal impact on the city from approving the disestablishment of the no-longer-needed district,” staff wrote in the report.
The ordinance will take effect 30 days after adoption.
