The Woodlands Launches Tourism Economic Development Zone to Boost Local Economy

Saturday, June 7, 2025

The Woodlands Township, an unincorporated community north of Houston, is taking significant steps to enhance its tourism industry and economic development.

Building upon the passage of House Bill 5311 in 2023, the township is establishing a Tourism Economic Development Zone (TEDZ) aimed at increasing marketing efforts, attracting visitors, and generating over $2 million annually to support local hotels and businesses.

Background: House Bill 5311 and Its Implications

In June 2023, Governor Greg Abbott signed House Bill 5311 into law, granting The Woodlands Township the authority to create a TEDZ and collect a portion of the state’s mixed beverage tax revenue. Prior to this legislation, only incorporated municipalities had the ability to collect such taxes. The new law allows The Woodlands to receive approximately $1.4 million annually in mixed beverage tax revenue, which will be allocated for local use, benefiting residents and businesses within the community.

Additionally, the legislation permits the township to establish a TEDZ composed solely of hotels. This zone allows participating hotels to impose a 2% fee on hotel room stays, generating funds dedicated exclusively to marketing, sales, and promotional efforts aimed at increasing tourism and attracting conventions and events to The Woodlands.

Objectives of the Tourism Economic Development Zone

The primary goals of the TEDZ are to:

Enhance Marketing and Promotion:
Utilize the funds generated from the 2% hotel fee to develop targeted marketing campaigns that showcase The Woodlands as a premier destination for leisure, business, and group travel.Attract Conventions and Events:
Invest in promotional activities to attract conventions, conferences, and large-scale events, thereby increasing hotel occupancy rates and stimulating local businesses.Support Local Hotels and Businesses:
Provide financial resources to support the hospitality industry, ensuring that local hotels remain competitive and continue to offer high-quality services to visitors.Generate Economic Growth:
Increase tourism-related revenue, contributing to the overall economic development of The Woodlands and enhancing the quality of life for residents.Implementation and Participation

The Woodlands Township Board of Directors has initiated the process by sending letters to hotels within the community, inviting them to participate in the TEDZ. Hotels interested in joining the zone must submit a formal petition to the township. Once established, the TEDZ will be governed by a board composed of representatives from participating hotels, with oversight provided by the township’s Board of Directors.

Funds collected through the 2% hotel fee will be managed by Visit The Woodlands, the township’s convention and visitors bureau. The organization will be responsible for developing and implementing marketing strategies, sales initiatives, and research projects to promote The Woodlands as a top-tier destination.

Projected Financial Impact

The establishment of the TEDZ is expected to generate over $2 million annually, with funds allocated as follows:

Marketing and Promotion:
A significant portion of the funds will be dedicated to advertising campaigns, digital marketing, and public relations efforts to raise awareness of The Woodlands as a travel destination.Sales Initiatives:
Investments will be made in sales programs aimed at attracting conventions, meetings, and group events to the area.Research and Development:
Funds will support research projects to assess market trends, visitor preferences, and the effectiveness of marketing strategies.

These initiatives are anticipated to not only boost tourism but also stimulate local businesses, including restaurants, retail shops, and entertainment venues, contributing to the overall economic vitality of The Woodlands.

Long-Term Vision and Future Developments

The establishment of the TEDZ is part of a broader strategy to position The Woodlands as a competitive player in the regional tourism market. Future plans include:

Expansion of Convention Facilities:
The township is exploring opportunities to expand convention and meeting spaces to accommodate larger events and attract a diverse range of conferences.Development of Cultural and Recreational Amenities:
Plans are underway to enhance cultural and recreational offerings, including the potential development of a performing arts center and additional recreational facilities.Sustainable Tourism Practices:
Efforts will be made to promote sustainable tourism practices, ensuring that growth is balanced with environmental stewardship and community well-being.Conclusion

The creation of the Tourism Economic Development Zone in The Woodlands marks a significant milestone in the township’s efforts to enhance its tourism industry and stimulate economic growth. By leveraging the provisions of House Bill 5311, The Woodlands is poised to attract more visitors, support local businesses, and establish itself as a premier destination for travelers seeking a blend of leisure, culture, and business opportunities. Through strategic marketing, investment in infrastructure, and community collaboration, The Woodlands aims to build a sustainable and thriving tourism economy for years to come.