Proposed State Amendment Could Redirect Tourism Funds Away from Ottawa County Promotion

3 June 2025

Put-in-Bay businesses and tourism leaders raise concerns over lodging tax proposal SC 0197

A proposed amendment to the Ohio Senate budget—SC 0197—could significantly impact tourism funding in Ottawa County, including Put-in-Bay, by allowing county governments to divert a majority of lodging tax revenue away from local visitor promotion efforts.

Currently, lodging tax revenue collected from overnight stays on South Bass Island and across Ottawa County helps fund marketing, events, and visitor services through Shores & Islands Ohio, the region’s destination marketing organization. The proposed amendment would allow counties to redirect up to two-thirds of that funding to general county expenses such as infrastructure or law enforcement.

Put-in-Bay business owners and community leaders warn this change could threaten the future of the island’s tourism economy, which relies heavily on summer visitors.

Why It Matters to Put-in-Bay

While much of the attention has focused on Erie County, the amendment would apply to Ottawa County as well, which includes Put-in-Bay, Port Clinton, Catawba, Marblehead, and other lakefront communities.

Although Ottawa County officials have not publicly supported the change, the law would give them the authority to redirect existing tourism promotion funds without local stakeholder approval or public input.

“This is a real threat to how we promote the island, support small businesses, and keep tourism growing in a sustainable way,” said one Put-in-Bay business owner who signed the petition against the bill.

What the Amendment Proposes

Amendment SC 0197 would allow select counties (including Ottawa) to:

Redirect up to 66% of local lodging tax revenue away from tourism promotion.
Allocate those funds instead to general services like public safety, infrastructure, or economic development.
Reduce funding for organizations like Shores & Islands Ohio to just one-third of existing bed tax revenue.

The concern: Put-in-Bay businesses generate this tax through overnight guests but would have no say in how it’s spent under the new rules.

Put-in-Bay Tourism Drives the Local Economy

Put-in-Bay plays a central role in Ottawa County’s tourism economy. Hundreds of small businesses, tour operators, restaurants, ferries, hotels, and vacation rentals depend on effective marketing and event promotion to attract visitors.

Local data shows:

Tourism saves each Ottawa County household $1,682 per year in state and local taxes.
Events, marketing, and services funded by lodging taxes help drive both midweek and weekend stays.
Lodging tax revenue is essential for regional advertising, event support, and visitor experience resources.

Shores & Islands Ohio President Larry Fletcher, who oversees regional tourism marketing for both Erie and Ottawa Counties, testified before the Ohio Senate Finance Committee in opposition to the amendment:

“This change threatens the health of an entire regional economy built around tourism. Every size business in our region—whether it’s a family-run bed and breakfast, a fishing charter captain, a retail shop or a major attraction—relies on our work to bring visitors here and encourage them to return.”

Community Pushback and Petition

A petition opposing SC 0197 is gaining support from across the Shores & Islands region, including many Put-in-Bay stakeholders. The petition urges Senator Theresa Gavarone and county officials to withdraw support for the amendment and preserve tourism funding.

“There has been no public dialogue, no stakeholder engagement, and no explanation provided to the businesses that generate the vast majority of this tax through the guests we attract and serve,” the letter reads.

The concern isn’t just about the money—it’s about the lack of transparency and the precedent it sets.

View and sign the petition here: change.org/p/protect-local-businesses

Ottawa County Officials Stay Quiet — For Now

Unlike Erie County commissioners, who actively testified in favor of the proposal, Ottawa County officials have not taken a public position. Commissioner Mark Coppeler recently stated, “We have not had discussions on the bed tax at this time,” but the law would still apply to the county if passed.

That silence is causing concern for island businesses, many of whom say they’ve received no communication about the proposal or what it could mean for them.

What’s Next

The Ohio Senate is expected to finalize its version of the state budget in the coming weeks. If passed, this amendment could change how tourism is funded in Put-in-Bay and throughout Ottawa County for years to come.

Local business owners and tourism advocates are urging lawmakers to reconsider and maintain full funding for the promotion and support of the region’s tourism economy.

PIB Daily will continue to follow this story and report any updates from Ottawa County or state officials.