OCEAN CITY, Md. - Ocean City leaders are considering a proposal that would expand how hotel room tax revenue can be used, a move supporters say could help finance a proposed sports complex while continuing to market the resort town to visitors.
The ordinance on the Mayor and Council agenda would allow some hotel rental tax dollars typically dedicated to tourism advertising to also be used for the sports complex. The agenda packet ties the proposal to Worcester County’s room tax increase to 6% that took effect Jan. 1, 2026, and includes projections that the additional 1% could generate about $5 million more each year.
Overall, the packet projects the hotel room tax could bring in about $30 million annually, with roughly $13 million dedicated toward advertising and the sports complex and about $17 million going to the general fund.
Susan Jones, executive director of the OCMD Hospitality Association, said the room tax is paid by visitors as part of hotel stays and short-term rentals, and is then collected and remitted to the county before being paid back to the town.
Jones said the association pushed for a dedicated share of room tax funding for advertising and marketing in 2007, arguing that the formula has helped grow the dollars used to attract visitors, which in turn supports town services.
“At that point in time, we agreed to an increase if some of the money could be dedicated,” Jones said, adding that the current approach has helped Ocean City draw more visitors over time.
At the same time, Jones said sports tourism is a major market and that a complex could help Ocean City compete for travel teams that choose destinations for tournaments throughout the year.
“Sports tourism has been a very huge market for a really long time, and we’ve been missing out on some of that because we don’t have the facilities,” she said.
Jones said she views marketing and sports tourism as connected, arguing the town still needs advertising to reach the right audiences while also building amenities that create demand.
Ocean City leaders are expected to discuss the proposal during Tuesday's council meeting.