Legislative Update

The 69th session of the Montana Legislature officially began on January 6th, 2025, and your MLHA lobbying team is already hard at work identifying potential threats and opportunities for the lodging and tourism industry. On January 13th, 2025, we proudly joined industry partners at “Travel Industry Rotunda Day,” where members of our board of directors engaged directly with legislators to discuss the importance of tourism in Montana and our shared concerns over a proposal to redirect bed tax dollars.

SB 90, introduced in the 2025 Montana Legislature, seeks to reallocate critical funding generated by the lodging sales tax and facility use tax, commonly known as the “bed tax.” This part of the bed tax currently funds tourism promotion and marketing. These taxes, collected by Montana’s lodging industry, are vital to supporting essential programs that benefit every corner of our state. They fund the general fund, local tourism infrastructure, historic preservation grants, public safety enhancements, and initiatives that promote tourism in rural areas.

Past legislative compromises have successfully allocated bed tax dollars to meaningful projects. Under SB 338 (2019), funding was directed toward constructing the Montana Heritage Center and supporting historic preservation through competitive grants, helping protect Montana’s unique history. SB 540 (2023) increased funding for local communities, enabling public safety improvements and emergency services, with $1.4 million already awarded to 26 safety agencies statewide. These carefully crafted policies reflect the collaborative approach that has made Montana’s tourism economy thrive.

Tourism remains a cornerstone of Montana’s economy, attracting 12.5 million visitors annually who contribute $5.45 billion to the state economy and generate $414 million in state and local taxes. This offsets the tax burden for Montana households by an average of $930 annually while supporting over 66,000 jobs—1 in every 12 Montanans. SB 90 threatens to disrupt this successful framework, jeopardizing the economic and community benefits that tourism provides.

MLHA is committed to opposing SB 90 to protect this vital funding mechanism and ensure Montana remains a world-class destination.

On January 20th, the Senate Local Government Committee heard SB 90, with no proponents and at least 43 opponents representing every corner of the tourism industry. Our Board Chair, Whitney Bergmann, and Treasurer, Shelli Mann, spoke eloquently on behalf of the bed tax from our perspective as the collectors and stewards of that tax.

We'll keep you informed through legislative action alerts as opportunities arise to help in this critical issue. Be ready to testify, send letters, and talk to your legislators about why preserving the bed tax framework is essential for Montana’s economy, communities, and heritage. Together, we can make our voices heard and safeguard the future of Montana’s tourism industry.

Property tax relief proposal slammed by MT tourism advocates

The bill backed by Senate Republican leadership would divert lodging tax dollars that currently fund tourism promotion and small-town economic development to lower homeowner tax bills.

Tourism and travel reps argue property tax bill would 'wreak havoc' on Montana economy

Senate Bill 90 would redirect money from lodging taxes to residential property taxpayers, but opponents said it would gut worthwhile, necessary programs.

Website Update

We have some exciting updates on the MLHA website! The Job Board and For Sale listings have been refreshed. We invite you to check them out and see what’s new.

Visit the For Sale Listings

Visit the Job Board

Commerce's Agritourism Grant Program Allocates Funds to Promote Agricultural Tourism Across Montana

HELENA, Mont. - The Montana Department of Commerce announced today that over $350,000 of grant funding will be divided among 17 agricultural businesses and communities throughout Montana. These funds will support diversification, agricultural opportunities and tourism revenue across the state. The funding is through Commerce's Agritourism Grant Program.

Montana Department of Commerce Awards Economic Impact and Destination Event Grants

HELENA, Mont. - The Montana Department of Commerce announced today that 49 local event organizations will share more than $740,000 of grant funding to support destination events that will help increase tourism in Montana communities. The funding is through Commerce's Economic Impact and Destination Event Grant Program.

November and December STR Now Available

Key November Trends

Montana Overall: Occupancy rate decreased slightly to 45.2% (from 46.4% in November 2023), with a marginal decline in Revenue per Available Room (RevPAR), dropping from $56.48 to $55.06. Average Daily Rate (ADR) remained stable at approximately $121.85, while total room revenue fell by 0.5%.

Billings: Lagged behind other areas with a significant drop in occupancy to 43.3% (from 49% in November 2023). ADR decreased slightly to $116.54, while RevPAR declined by 13.2%. Total room revenue saw a 9% reduction.

Bozeman/Yellowstone: Occupancy dropped to 44.5% (from 48.2% in November 2023), and RevPAR decreased by 9.2%. ADR slightly declined to $147.72, and total room revenue experienced a 2.3% reduction.

Missoula: Saw a slight decline in occupancy to 44.4% (from 46.3% in November 2023), with RevPAR dropping by 6.9%. ADR decreased to $131.44, but total room revenue decreased only slightly by 2.6%.

Helena/Great Falls: Helena recorded a strong performance with a 10.6% increase in occupancy to 49.9%. RevPAR grew by 16.9%, supported by a rise in ADR to $121.62. Great Falls showed stable metrics, with minor increases in occupancy and RevPAR.

Butte: Occupancy rate surged to 58.4% (up from 36.2% in November 2023). RevPAR increased dramatically by 86.1%, with ADR rising to $116.35.

Key December Trends

Montana Overall: Occupancy rate declined to 37.6% (from 40.2% in December 2023), with a decrease in Revenue per Available Room (RevPAR) from $50.83 to $47.85, reflecting a -5.9% change. Average Daily Rate (ADR) saw a slight increase to $127.33, showing a 0.7% improvement. Total room revenue declined by 4.0%, indicating decreased demand across the state.

Billings: Experienced a decline in occupancy to 37.8% (from 41.1% in December 2023). ADR slightly decreased to $109.68, while RevPAR fell by 8.4%. Total room revenue decreased by 5.4%, reflecting a continued downward trend.

Bozeman/Yellowstone: Occupancy declined to 42.7% (from 46.9% in December 2023), with RevPAR decreasing by 7.1% to $79.30. ADR increased to $185.66, reflecting a 2.1% improvement. However, total room revenue saw a decline of 2.3%.

Missoula: Missoula experienced one of the steepest drops in occupancy, falling to 33.9% (from 39.7% in December 2023). RevPAR dropped significantly by 20.5%, falling to $38.97, while ADR declined to $114.87. Total room revenue decreased by 13.8%.

Helena/Great Falls: Helena recorded an occupancy increase to 40.7% (from 39.4% in December 2023), with a 9.7% rise in RevPAR to $45.26, supported by a 6.0% increase in ADR. Great Falls also saw growth, with occupancy increasing to 41.9% and RevPAR growing by 3.5%.

Butte: Butte saw a slight decline in occupancy to 31.2% (from 32.5% in December 2023). RevPAR decreased by 2.6% to $31.46, while ADR increased to $100.81. Total room revenue decreased by 2.5%.

Click Here to Download the November Smith Travel Report

Click Here to Download the December Smith Travel Report

Updates from the Department of Commerce

Registration for the Montana Department of Commerce’s Governor’s Conference on Tourism is open through April 1, 2025.

Conference presentations will include:

"The New Montana Brand"
"Tourism by Rail"
"Developing Sports Meetings"
"Grant Writing Power Hour: Boost Funding for Tourism and Beyond"

Nominate a Made in Montana Retailer. Commerce’s Made in Montana Program is seeking Retailer of the Year Award nominations from members, chambers of commerce, economic development agencies, customers, tourism partners and peers. The final decision is made by program staff based on quality/quantity of nominations as well as other criteria.

The annual Montana Tourism Awards honor the exceptional achievements of individuals, businesses, organizations, communities and regions that bolster Montana’s tourism and recreation industries while enhancing their economic impact for residents. Nominations are open now and must be submitted by midnight on Feb. 12, 2025.