Many Happy Returns
What Occupancy Tax Dollars Have Built for the Outer Banks
By Ann Wood / Photos courtesy of Outer Banks Visitors Bureau / The Soundside Event Site Boardwalk in Nags Head provides a scenic, accessible pathway connecting public spaces along the sound, supported in part by Dare County Tourism Board funding.
It’s Earth Day, and the Outer Banks Visitors Bureau is hosting an event to officially open the crown jewel of the Soundside Event Site: a half-mile stretch of newly built boardwalk that winds westward from the event site lawn, connecting First Flight Adventure Park on one end to the Harvey Public Sound Access on the other.
There are musicians positioned in gathering areas along the boardwalk and a band performing in the expansive 2,000-foot gazebo. Families stroll the boardwalk and enjoy the view, kids run along the boards, and seniors relax on the built-in benches. Among what appears to be mostly locals in attendance, the boardwalk is christened.
Yet many people don’t realize that projects like this are made possible, in part, through occupancy tax dollars generated by tourism.
Dare County charges a 6% occupancy tax on short-term lodging stays, such as hotels and vacation rentals. It is charged to visitors as a percentage of the cost of their stay, collected by lodging providers at the time of booking or checkout, and then remitted to the county.
The Sensory Garden at The Elizabethan Gardens in Manteo invites visitors of all ages to engage with nature through touch, scent, and sound, supported in part by Dare County Tourism Board funding.
For years, there has been a common misconception that occupancy taxes, collected from short-term rental reservations, exist primarily to attract more visitors to the Outer Banks. While tourism marketing is certainly one use of those funds, it represents only a small part of the story.
In reality, occupancy tax revenues help support everything from public services and beach nourishment to community parks, pathways, accessibility improvements, cultural institutions, and environmental stewardship projects that residents enjoy every day.
The Soundside Event Site boardwalk offers a perfect example “The boardwalk is a wonderful way for people to connect with the nature of the Outer Banks,” says Lee Nettles, Executive Director of the Outer Banks Visitors Bureau. “Whether it be enjoying the view, dropping a line for crabbing, launching a paddleboard or sitting in the shade of the gazebo. It’s one of those attractions that I think the community will grow to love and appreciate.”
That long-term community value is exactly what the North Carolina occupancy tax legislation was designed to create.
Half of the occupancy tax revenues are distributed directly to Dare County and its municipalities to support tourism-related public services and infrastructure. Another third is dedicated to beach nourishment projects that help protect the shoreline, homes, roads, and public infrastructure. The remaining portion supports the Dare County Tourism Board, which oversees destination marketing, research, tourism management initiatives, and community grant programs.
Tourism’s impact extends far beyond the projects it funds directly.
According to the Dare County Tourism Board, tourism generates enough tax revenue to save the average Dare County resident approximately $3,860 annually in taxes—the highest tourism-related tax savings figure in North Carolina.
But perhaps the most visible benefits are the projects residents see and use every day.
Dowdy Park in Nags Head, a community gathering space supported in part by Dare County Tourism Board funding, offers open green space, playgrounds, and programming for residents and visitors year-round.
Since 1991, the Tourism Board has reinvested more than $26 million into community projects through more than 925 grants awarded to over 160 nonprofit organizations and government entities.
Many of those projects have become landmarks in their own right. Examples of projects supported in part by grants from the Tourism Board include:
The Duck Boardwalk has become one of the most recognizable public spaces on the Outer Banks, connecting businesses, restaurants, natural areas, and community gathering spaces along the Currituck Sound. The Duck amphitheater has hosted many musical and cultural events in Duck. The Manteo Town Common transformed an underutilized area into a vibrant public green space. And one of the newest projects currently underway is Everyone’s Playground in Kitty Hawk, which will provide an inclusive environment where children of all abilities can play together.
Occupancy tax funding has also supported miles of sidewalks, pathways, and multi-use trails throughout Dare County, including improvements on Bay Drive in Kill Devil Hills, pedestrian walkways on Hatteras Island, and projects that improve walkability and safety for residents and visitors alike.
Beach access improvements have been another major focus. Accessible beach mats, walkways, boardwalk replacements, and shoreline access projects help ensure that everyone can enjoy the beaches that define the Outer Banks.
The impact extends beyond recreation.
Tourism funding has helped support cultural institutions such as The Lost Colony, the Graveyard of the Atlantic Museum and the Elizabethan Gardens.
These investments reflect an evolution in how tourism is managed on the Outer Banks.
In 2023, the Dare County Tourism Board adopted a Long-Range Tourism Management Plan developed through extensive community engagement. The plan focuses on four key priorities: resident and visitor engagement, environmental stewardship, community infrastructure, and housing.
The message from the community was clear: tourism should benefit the people who live here, not just the people who visit.
“It can’t be only about demand generation and getting more people here,” Nettles said of the Tourism Board’s mission.
That philosophy has led to initiatives such as Volunteer OBX, which connects visitors with local nonprofits and encourages community involvement during their stay.
“The Volunteer OBX initiative quickly revealed broader potential,” says Jeff Schwarzenberg, Community Engagement Manager for the Outer Banks Visitors Bureau who has been tasked with leading the implementation of these strategic community goals. “There really wasn’t a one-stop hub connecting volunteer opportunities with organizations that need help, so Volunteer OBX has evolved into a broader community initiative.”
It has also guided investments in public infrastructure and community amenities designed to serve residents year-round.
“Coming out of COVID, one of the recommendations in the Long Range Tourism Management Plan was to be more intentional about bridging the gap between visitors and locals and working more closely in harmony with the local community. The grants are one way we’ve been able to do that and use the power of tourism for more direct good in the community,” says Jeff Schwarzenberg, Community Engagement Manager for the Outer Banks Visitors Bureau.
For property owners, these investments help preserve the quality of life and sense of place that make the Outer Banks such a desirable destination.
Strong public amenities, accessible beaches, protected shorelines, and thriving cultural institutions contribute to both community vitality and long-term property values.
For residents, the benefits are often more personal.
Manteo Town Common serves as a central gathering space for community events, recreation, and public life, supported in part by Dare County Tourism Board funding.
A safer place to walk or bike. A playground for children. A restored landmark. Improved beach access. A beautiful place to view the sunset and bring family and friends together.
Standing at the end of the Soundside Event Site boardwalk, it’s easy to appreciate the result of those investments. What began as occupancy tax revenue has been transformed into something tangible—a place where people gather, connect with nature, and create memories.
That’s the vision behind tourism investment in Dare County.
Nettles puts it plainly: “The goal of the Tourism Board and the occupancy tax that funds it isn’t just to bring more people to the Outer Banks, but to leave the community better than we found it.”
Where Does the 6% Occupancy Tax Go?
Every accommodation reservation in Dare County includes a 6% occupancy tax. While many people assume these funds are used solely to attract more
visitors, the reality is much broader.
50% → Dare County & Municipalities
Supports public services, infrastruture, facilities, law enforcement and emergency services.
33% → Beach Nourishment Fund
Helps protect Dare County’s beaches and roads.
17% → Dare County Tourism Board
Funds destination marketing, community grants, research, and long-range planning efforts.
Since 1991
• More than $26 million invested in community projects
• More than 925 grants awarded
• More than 160 nonprofit and government recipients
Author: Ann Wood
