News Release

Town selects Destination Marketing Organization and approves new tourism marketing contract

January 9, 2026

The Town of Hilton Head Island has selected the Hilton Head Island–Bluffton Chamber of Commerce as its Destination Marketing Organization (DMO) and approved a new professional services contract for tourism marketing.

South Carolina Code of Laws § 6-4-10 requires certain local governments receiving accommodations tax revenues to designate an eligible organization to conduct tourism-related advertising and promotion. The Town’s selection of the Hilton Head Island–Bluffton Chamber of Commerce satisfies this statutory requirement while advancing a broader community-centered approach to tourism marketing — one that clearly connects how accommodations tax revenues are reinvested to support residents, local businesses, and the Island’s long-term quality of life.

The new contract was presented to Town Council at its December 18, 2025 meeting and approved unanimously. It establishes an initial three-year term from December 19, 2025, through December 18, 2028, with a one-time renewal option of up to two additional years, subject to Town Council approval. To reinforce accountability and public trust, the Town will issue a new request for qualifications (RFQ) for DMO services one year prior to the end of the final term.

The contract reflects a shared commitment by the Town and the DMO to promote a thriving, visitor-friendly community that benefits those who live and work on the Island year-round. It is structured to promote transparency, invite public understanding, and ensure tourism marketing decisions are informed by community values, priorities, and feedback.

The agreement includes oversight and reporting requirements designed to help residents clearly see how tourism marketing dollars are planned, spent, and measured—strengthening confidence that tourism is being managed thoughtfully and responsibly.

Contract Provisions

• Public reporting and community engagement: Each year, the DMO will submit its proposed marketing plan and associated budget to Town Council for public review and consideration. The process is designed to promote understanding, dialogue, and transparency and will include:
  • Town Council Public Workshop to review the preliminary marketing plan and budget no later than March 31 annually.
  • Accommodations Tax Advisory Committee Public Meeting to review the proposal and provide a recommendation to Town Council.
  • Town Council Public Meeting at which the annual marketing plan and budget will be formally considered for approval.
  • Town Council Public Meetings, following approval of the marketing plan and budget at which the DMO will provide updates to Town Council. These updates will be given at regularly scheduled Town Council public meetings at least twice annually on marketing activities, budget performance, key performance indicators, and measurable outcomes.
     
• Financial transparency and reporting: The DMO will submit a detailed, line-item annual budget using the South Carolina Tourism Expenditure Review Committee (TERC)-approved format. The contract requires clear identification of all revenues and expenditures related to Town-provided DMO funds to ensure spending aligns with the Town Council-approved budget and the community’s stated priorities. An independent certified public accountant will prepare an annual audit and comprehensive accounting report of Town-provided DMO funds, including 100% of invoices, receipts, and required tax filings, to be delivered to the Town by September 30 each year.
   
• Public access to information: ThinkHiltonHeadIsland.org will serve as a centralized, publicly accessible hub for marketing plans, budgets, and accounting information, allowing residents, stakeholders, and businesses to easily understand how tourism marketing efforts are developed and evaluated.
   
• Strategic and values-based marketing: The annual marketing plan will outline initiatives that reflect the Island’s community values, including promotion of local events, support for sustainable and responsible tourism practices, protection of natural and cultural resources, and use of industry-standard metrics to measure economic impact, effectiveness, and stakeholder satisfaction. Marketing efforts will be designed not only to attract visitors, but to do so in a way that respects residents and preserves what makes Hilton Head Island unique.

Why This Matters to Residents

Tourism plays an important role in Hilton Head Island’s economy, but how tourism is managed matters just as much as its economic impact. This contract is designed to demonstrate how accommodations tax revenues are used and how tourism marketing supports the community. For residents, this agreement:

• Provides transparency into how designated tourism dollars are budgeted, spent, and audited, reinforcing public trust and accountability.
• Ensures a public process through workshops, advisory committee review, and Town Council deliberation before annual marketing plans and budgets are approved.
• Aligns tourism promotion with community values, prioritizing sustainability, protection of natural and cultural resources, and respect for the Island’s quality of life.
• Focuses on balance, supporting a strong local economy while being mindful of resident experience, infrastructure capacity, and neighborhood impacts.
• By setting clear expectations and creating multiple opportunities for public engagement and understanding, the Town aims to ensure tourism continues to benefit residents — not just visitors — today and in the future.

"This contract is about more than marketing — it is about trust, clarity, and community understanding," said Mayor Alan Perry. "By strengthening transparency, inviting public engagement, and aligning tourism promotion with our shared values, we are helping residents see how accommodations tax revenues are reinvested to support a strong local economy while protecting the character and quality of life that make Hilton Head Island special."

Background

The Hilton Head Island–Bluffton Chamber of Commerce was selected as the Town’s DMO following the Town’s established procurement process. An RFQ issued in early 2025 resulted in several responses, which were reviewed for eligibility under South Carolina law and evaluated using industry-standard criteria. The Hilton Head Island–Bluffton Chamber of Commerce was determined to be the most qualified and eligible respondent.

Following the selection, the Town of Hilton Head Island, and the Hilton Head Island–Bluffton Chamber of Commerce negotiated a professional services contract that reflects both statutory requirements and the community’s expectations for transparency, accountability, and responsible tourism management. The contract was formally approved by Town Council on December 18, 2025.

DMO Frequently Asked Questions (FAQs)

1. Why is the Town required to select a Destination Marketing Organization (DMO)?
   South Carolina law § 6-4-10 requires local governments that receive accommodations tax revenues to select an eligible organization to conduct tourism-related marketing and promotion. This ensures that state-designated funds are used specifically for tourism marketing purposes and administered by a qualified entity.
   Specifically, the referenced code states:
   
   “Thirty percent of the balance must be allocated to a special fund and used only for advertising and promotion of tourism to develop and increase tourist attendance through the generation of publicity. To manage and direct the expenditure of these tourism promotion funds, the municipality or county shall select one or more organizations, such as a chamber of commerce, visitor and convention bureau, or regional tourism commission, which has an existing, ongoing tourist promotion program. If no organization exists, the municipality or county shall create an organization with the same membership standard in Section 6-4-25. To be eligible for selection the organization must be organized as a nonprofit organization and shall demonstrate to the municipality or county that it has an existing, ongoing tourism promotion program or that it can develop an effective tourism promotion program. Immediately upon an allocation to the special fund, a municipality or county shall distribute the tourism promotion funds to the organizations selected or created to receive them. Before the beginning of each fiscal year, an organization receiving funds from the accommodations tax from a municipality or county shall submit for approval a budget of planned expenditures. At the end of each fiscal year, an organization receiving funds shall render an accounting of the expenditure to the municipality or county which distributed them. Fees allocated pursuant to this subsection must not be used to pledge as security for bonds and to retire bonds. Also, fees allocated pursuant to this subsection must be allocated to a special fund and used only for advertising and promotion of tourism to develop and increase tourist attendance through the generation of publicity, and not used to pledge as security for bonds and to retire bonds.” (SC Code § 6-4-10(3))
2. Why was the Hilton Head Island–Bluffton Chamber of Commerce selected as the DMO?
   The Hilton Head Island–Bluffton Chamber of Commerce was selected through the Town’s established procurement process. An RFQ issued in early 2025 resulted in several responses, all of which were evaluated for eligibility under state law.
3. What is the term of the new contract?
   The contract has an initial three-year term, from December 19, 2025, through December 18, 2028. It includes a one-time renewal option of up to two additional years, subject to Town Council approval, prior to the issuance of a future request for qualifications.
4. How does the new contract ensure transparency and accountability?
   The contract includes the following requirements:
   • Line-item budgeting using the South Carolina Tourism Expenditure Review Committee (TERC)-approved format. Budgets will include year-over-year comparisons and identify all revenues and expenditures, including Thirty Percent Fund allocations and other funding sources.
   • An independent certified public accountant will prepare an audit and a comprehensive annual accounting report of Town-provided DMO funds, including 100% of invoices, receipts, and required tax filings, to be delivered to the Town by September 30 each year.
   • Each year, the DMO will submit to Town Council for consideration a marketing plan and associated budget. Upon submittal to the Town, the following process will be followed:
     • Town Council public workshop meeting: This meeting is to review and provide feedback on the preliminary marketing plan and budget no later than March 31 annually.
     • Accommodations Tax Advisory Committee Meeting: This meeting will include a review and recommendation regarding the proposed marketing plan and budget to Town Council.
     • Finance and Administration Committee Meeting: This meeting will include a review and recommendation regarding the proposed marketing plan and budget to Town Council.
     • Town Council Meeting: During the Town's budget approval process, Town Council will consider the DMO proposed annual marketing plan and budget.
     • Once the annual marketing plan and budget are approved by Town Council, the DMO will provide updates on marketing activities and budget performance (including key performance indicators and associated metrics) to Town Council during their regular meetings and at least twice annually.
5. How are accommodations tax funds used under this contract?
   Accommodations tax funds allocated to the DMO are used for tourism marketing and promotion pursuant to SC Code of Laws and the terms of the new contract. The contract requires clear identification of all revenues and expenditures related to Town-provided DMO funds, to ensure funds are used consistently with the Town Council-approved annual budget and in alignment with the Town's priorities.
6. How does tourism marketing benefit Hilton Head Island residents?
   Effective tourism marketing supports the local economy by attracting visitors who generate revenue for local businesses, support local jobs, and contribute to tax revenues that help fund public services, infrastructure, and community amenities. The contract emphasizes sustainable tourism and alignment with the Town’s core values to balance economic benefits with quality of life for residents. The Town’s core values were established in the 2020 Comprehensive Plan and include:
   • Pursuit of Excellence.
   • Environmental Sustainability.
   • Parks & Recreation.
   • Inclusive Community.
   • Connected Community.
   • Right-sized Infrastructure.
   • Revitalize Economy.
   • Regional Focus.
   The DMO’s marketing efforts will support these values by highlighting experiences and itineraries that celebrate what makes Hilton Head Island special; specifically, its arts & culture, ecotourism, history, recreation, and wellness.

For More Information

Town Council Agenda Packet for this item:

• Staff Report and Presentation
• Resolution Approving the Contract
• Contract for DMO Services
• RFQ for DMO Services
• Executive Summary of Contract Terms
• DMO Procurement Process

Town of Hilton Head Island: hiltonheadislandsc.gov | Contact: Heather Woolwine, M.A., Communications and Marketing Director (HeatherW@hitlonheadislandsc.gov)

Hilton Head Island–Bluffton Chamber of Commerce: hiltonheadisland.org or thinkhiltonheadisland.org | Contact: Charlie Clark, Vice President of Communications (cclark@hiltonheadisland.org)