Red Lodge Convention & Visitor’s Bureau

What is a CVB?

A Convention and Visitor’s Bureau (CVB) is a Montana Office of Tourism (MOT) funded and regulated entity whose solepurpose is marketing with the intent of putting ‘Heads in Beds’.

How Do You Qualify?
There is a long formula but basically; All lodging properties within the town of Red Lodge collect and pay lodging tax to the MOT. This money is split up among State agencies with only a percentage going for regional marketing. When this marketing percentage reaches $35,000 for 2 years in a row, a town is eligible to apply to become a CVB. Lodging Tax collections of $176,000 per year, after everything comes off the top, Leaves approximately $36,000. Once you reach that goal, you must provide an entity that meets the States Eligibility Requirements. The Chamber meets these eligibility requirements. Please see Eligible Organizations addendum. *

What Does it All Mean?
Once we become designated as a CVB, half or approximately $18,000, would be directly available to Red Lodge for marketing. (applause) Of that, 20% or $3,600, can be used for administrative expenses. The key here is that there is no limit to the amount of money that can be raised. As our area’s lodging tax collections grow, so does our marketing income.

What is the Chamber’s Role?
In the majority of towns with a CVB, the Chamber of Commerce/Visitor’s Center is the administrative organization. The CVB has it’s own board, and a completely separate set of books and checking account. Virtually all CVB’s with a limited administrative budget are partnered with the Chamber/Visitor’s Center. The Chamber Director should serve as Director of the CVB Board.

* Addendum

  1. Eligible Organizations
    By law, only one nonprofit organization within each tourism region or eligible city, consolidated city/county, resort area, or resort area district can be approved to receive available lodging facility use tax revenue. Organizations will submit the following documentation to the Council for approval and recognition.
  2. Proof of registration as a not-­‐for-­‐profit corporation, with active standing, registered with the Montana Secretary of State.
  3. Proof of not-­‐for-­‐profit exempt status from the Internal Revenue Service.
  4. Federal identification number.
  5. Copy of bylaws and articles of incorporation. Bylaws shall reveal that tourism is the purpose or part of the purpose of the organization.
  6. Open access to all meetings related to any expenditures of lodging facility use tax revenue, as required by law.
  7. CVB’s shall present a duly passed resolution from the governing body of their city, city/county government, resort area, or resort area district giving support to the CVB for recognition by the TAC.

Funds are awarded only to organizations, which meet the requirements of the Lodging Tax Law and have been formally recognized by the Tourism Advisory Council. Recognition may be revoked of any organization, which fails to comply with the law/rules/regulations governing the distribution of lodging tax revenue.

CVB Comparison.xlsx