Galveston, Galveston County, Texas

The Grand 1894 Opera House. Galveston, Texas.
Photography by John Glow.

Galveston’s willingness to fund both larger and smaller arts and cultural organizations using Municipal Hotel Occupancy Tax (HOT) provides critical financial support that results in long-term significant growth.

Galveston’s historic downtown is home to a diverse collection of cultural assets, from the 19th-century architecture that made The Strand a National Historic Landmark to its museums, galleries and theaters. A significant contributing factor to the preservation and enhancement of Galveston’s cultural assets has been the Galveston City Council’s long-term funding commitment to arts and cultural activities using a portion of the Municipal Hotel Occupancy Tax (HOT).

Over the past decade, the City of Galveston has allocated over $10 million in HOT funds to arts and culture organizations. The Arts & Historic Preservation Advisory Board administers the distribution of HOT funds set aside for arts and historic preservation. The grants cannot exceed 20% of the nonprofit’s overall annual budget. Galveston’s willingness to fund smaller arts and culture organizations provided the critical financial support that resulted in long-term significant growth.

Many of the grants awarded are for less than $25,000. The following findings highlight how even small investments in arts organizations using HOT funds can yield long-term positive returns to the community:

• Of the 24 recipients who received HOT funding between 2012-2016, seven at least doubled in size over this time period.

• Of the 26 total organizations who have received funds between 2012-2019, 20 are still currently active.

• Since 2014, not one nonprofit organization who receives HOT has dissolved or reduced in size.

As Galveston looks to leverage its unique history, culture, and environment, HOT funds for the arts will continue to be a sound investment.