Tourism Development Legislation

Tourism-based economic development is a key economic driver that can increase visitation and spending within a state. Due to its limited inventory of compelling tourist destinations, the State of Mississippi sought to provide incentives to developers to stimulate new development and attract visitors. In this analysis, Mr. Hunden reviewed incentive programs implemented in several states and recommended strategies to make Mississippi more competitive.

Mr. Hunden developed an incentive package modeled on the successful Kentucky Tourism Development Act (KTDA) that established clear criteria for proposed tourism projects. These guidelines included:

• Explicit definition of what qualifies as a tourist attraction
• Minimum dollar amount for total Project value
• Required number of operating days per year to address seasonality
• Prohibition against negatively affecting current employment in the state
• Minimum percentage of visitors required from out of state
• Requirement to demonstrate a positive net economic impact on the State

Once these guidelines were established, the State introduced the Mississippi Sales Tax Rebate, which rebates 80 percent of a project’s sales tax generated over ten years for up to 30 percent of total project cost.

As of 2025, Mississippi continues to use the Tourism Rebate Program to attract new tourism-oriented development, and recent legislative proposals have aimed to refine project eligibility and strengthen the State’s tourism incentives. Lawmakers have also explored creating a dedicated Department of Tourism, signaling an ongoing effort to elevate tourism as a statewide economic priority.