Thurston County to see boost in lodging tax funds in 2026, will utilize $84K for FIFA Fan Zone

Thanks to a board-approved jump in distributable lodging tax funds in 2026, the Thurston County Board of Commissioners is planning to spend $84,000 toward its involvement as a FIFA Fan Zone during the 2026 World Cup.
Thurston County, which approved $150,000 of lodging tax funds to distribute in each of the last two cycles, is expected to bring in between $200,000 and $250,000 in lodging tax revenue in 2025 and end the year with an anticipated fund balance of $369,263. The board opted Sept. 3 to raise the distribution amount to $250,000 and added the additional $84,000 toward the FIFA Fan Zone. Thurston County imposed a 2% special hotel/motel lodging tax that took effect Jan. 1, giving the county a boost in revenue and available fund balance.

“We know that some of our tax collections are, while not completely flat, they’re not performing as high as they have when they passed,” County Manager Leonard Hernandez said. “In 2024, when the board approved $150,000 and we brought in $134,000, there was a significant enough fund balance for us to cover that. Some of the reason why there is [that] fund balance is because not everyone we distribute funds to is always able to expend the funds, and so, once in a while, there are funds that come back.”

The county’s ending fund balance for 2024 was $278,561 with revenues totaling $134,318. For 2026, commissioners had the opportunity to choose a distribution amount as high as $450,000, but they opted for the total of $334,000 to include the FIFA Fan Zone expense. The cities of Olympia, Lacey and Tumwater will also pitch in financially toward the event, commissioners said.

Thurston County was announced as one of nine locations across Washington to host fan zones during the 2026 World Cup. As Seattle is one of the host cities for the event, the Seattle FIFA World Cup 26 Local Organizing Committee partnered with communities outside of King County to create vibrant fan zones in order to ensure that as many Washingtonians are involved in the historic event as possible. Specific locations within Thurston County have yet to be announced.

Commissioner Carolina Mejia advocated for some lodging tax funds to be allocated toward broad community events hosted in Thurston County, such as the Procession of the Species and the South Sound Block Party. Commissioner Emily Clouse pitched in the idea of giving funding to the Regional Athletic Complex in Lacey, although Mejia said she didn’t think the organization had submitted applications in the past.

Commissioner Rachel Grant expressed her desire to see funding toward South Thurston County and bringing “heads in beds” in that area. Chair Tye Menser said there will be an app, one he compared to “Pokemon Go,” available to the Fan Zone communities where the county can identify up to 15 locations around the county where visitors can go and earn points and raffles toward World Cup tickets.

“I am definitely interested in increasing this amount,” Grant said of the county’s lodging tax spending pool, “but I just want to be making sure that we do it proportionately so that we are able to increase some things in our south county, as well.”

Lodging tax funds must be used for tourism promotion, acquisition of tourism-related facilities, operation of tourism-related facilities, or tourism marketing, among other uses. In 2025, the commissioners approved $150,000 to distribute and received 23 applications, with the county’s Lodging Tax Advisory Committee recommending funding for 16 applicants. The county’s funding priorities included projects, events and facilities owned by the county; applications that provided a high ratio of “paid overnight stays” in hotels and motels; and projects in unincorporated and South Thurston County.

Funded projects in 2025 included the Thurston County Fairgrounds ($26,630), Olympia Funk Festival ($11,600), Olympia Harbor Days ($8,850), Washington Center for Performing Arts ($8,400), and Capital Lakefair ($8,400). Tourism-related facilities to receive funding in 2025 included the Thurston County Economic Development Council ($27,200), Tenino Area Chamber of Commerce ($11,840), We Love Rainier WA ($9,020), Yelm Chamber of Commerce ($7,200), and Grand Mound Rochester Chamber of Commerce ($3,710).