The Oregon Coast Is Busting at the Seams, and Our Tourism Tax Needs a Makeover

The Oregon Coast isn’t just a postcard come to life—it’s an economic engine that keeps the state humming.

From the rugged cliffs to the serene beaches, it’s where families come to make memories, foodies come to eat their weight in crab, and out-of-towners learn the art of layering fleece. But there’s a growing problem lurking behind the breathtaking sunsets: the coast is groaning under the weight of its own popularity.

Back in 2003, the Oregon legislature tried to get ahead of this by creating the Transient Lodging Tax (TLT). The pitch was simple: let tourists pay to keep the magic alive. It worked—for a while. The tax helped fund promotional campaigns, put Oregon’s name on the map, and turned Haystack Rock into a global celebrity. Portland got its direct flights, small towns got their tourism booms, and the coast became a bucket-list destination for travelers everywhere.

But fast forward two decades, and the cracks are hard to ignore. The highways are clogged, public facilities are buckling, and housing is tighter than a carry-on suitcase. Local governments are hiking TLT rates just to tread water, but it feels like they’re bailing out a sinking ship with a coffee mug. The coast deserves better than stopgap solutions. The question is: can we rethink the way we manage tourism dollars before the coast’s charm wears thin?

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The Coast Is Packed, and It’s Falling Apart

Here’s the bottom line: the Oregon Coast isn’t just a vacation spot; it’s a cornerstone of our state’s economy. People from all over the world come to hike windswept trails, indulge in seafood so fresh it practically swims to your plate, and, of course, grab that Instagram-perfect shot of Haystack Rock. On any given day, overnight visitors swell the population along the coast by 21%. Imagine if Tillamook had to absorb an extra town’s worth of people overnight—every single day. That’s the reality coastal communities are dealing with.

And they’re doing it with infrastructure that’s past its breaking point. The roads are pocked with potholes, parking lots are overflowing, and good luck finding a public restroom that doesn’t feel like a last resort. Tourists don’t just use these amenities—they accelerate their deterioration. Roads built for local residents buckle under the weight of RVs and endless traffic. Parks designed to give small communities space to breathe are overwhelmed by visitors. Trash bins overflow, sidewalks crack, and septic systems strain under the load.

Meanwhile, the burden of maintaining, repairing, and expanding this infrastructure falls squarely on local governments and residents. It’s their tax dollars that patch the roads, keep the parks clean, and maintain basic services—not the visitors who cause most of the wear and tear. If tourists keep running into overflowing trash bins and crumbling facilities, they’ll stop coming. And when the visitors stop, so does the money

And, let’s not forget to bring up housing. Short-term vacation rentals (STVRs)—those charming cottages you book for a weekend escape—are gobbling up housing that should be available to local workers. Restaurants, hotels, and tour operators are desperate for employees, but when a studio in Cannon Beach rents for more than a two-bedroom in downtown Portland, where exactly are workers supposed to live?

The Oregon Coast isn’t just a destination. It’s a community. And unless we figure out how to balance tourism with sustainability, that community is going to fracture.

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A Smarter Split: The 50:50 Solution

Here’s a solution that actually makes sense: change how we allocate the TLT. Instead of the current 70:30 split—where 70% goes to tourism promotion and only 30% can be used for other needs—let’s go 50:50. Half of the funds would still go toward marketing and tourism-related facilities, but the other half could be used to address real, pressing problems like infrastructure, housing, and public safety.

This isn’t about raising taxes or cutting tourism promotion to the bone. It’s about balance. What good is advertising Oregon’s beaches if visitors arrive to find pothole-ridden roads, packed parking lots, and an overworked emergency response system? By reallocating these funds, local governments could finally make meaningful improvements that benefit both tourists and the people who live here year-round. It’s a win-win that ensures the coast’s magic isn’t just preserved but enhanced.

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Piles of Cash, Nowhere to Spend It

Believe it or not, some cities along the coast can’t even spend the tourism promotion money they already have. It’s piling up because there aren’t enough viable projects to use it on. Why? Because the ocean, the coastline, and the seafood are already doing the heavy lifting. Call it divine intervention, fate, or just plain luck—Oregon was handed the best marketing campaign on Earth. The coastline, the seafood, the sunsets—it’s all a masterpiece, and the best part? It doesn’t cost a dime.

Meanwhile, the real needs—affordable housing for workers, road repairs, public restrooms—are underfunded partly because the current TLT rules won’t allow that money to be used where it’s needed most. Instead of wasting funds on yet another glossy ad campaign, it’s time to let communities focus on the basics that keep the coast functional and enjoyable for everyone.

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Raising Taxes Won’t Fix the Coast

Some might argue that simply raising TLT rates is the only solution (and unless we change the law, it is the only fix). But here’s the reality: tourists aren’t bottomless ATMs. They’re already paying for hotel stays, dining, and travel. Jacking up lodging taxes even higher could drive them to cheaper destinations like Idaho or Montana. When people feel gouged, they stop coming—and that hurts everyone.

It’s not just individual travelers at risk. Resorts that host corporate retreats and conferences—businesses that book entire blocks of rooms and pump serious money into local economies—might decide it’s not worth the cost. Why hold a team-building seminar on the coast if a mountain retreat in Montana costs half as much? Pricing ourselves out of the market isn’t just shortsighted; it’s self-sabotage.

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Tourists and the Toll on Law Enforcement

Tourism doesn’t just stretch our roads and housing—it’s hammering local law enforcement. In Tillamook or Clastop County, ask either Sheriff Brown or Sheriff Phillips how much of their jail space is filled with out-of-towners. I'll spare you the suspense: it’s a lot. When deputies are tied up responding to yet another drunken ATV crash in Sandlake, who’s left to handle the domestic violence call 30 miles away? The resources just aren’t there.

If we don’t start using TLT revenues to support public safety, it’s the locals who will pay the price—whether it’s slower response times or higher property taxes to cover the gap. Tourism should pay for the demands it creates, and that includes making sure our law enforcement agencies have the resources they need to keep communities safe.

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It’s Time to Fix How We Fund the Coast

The Oregon Coast is a treasure, but treasures need care. The TLT was a brilliant idea 20 years ago, but it’s overdue for a reboot. By rethinking how we allocate these funds, we can ensure the coast remains a world-class destination without compromising the communities that make it special.

This isn’t about choosing between tourists and locals—it’s about finding a way to support both. Let’s make the next 20 years of tourism smarter, more sustainable, and better for everyone. The coast deserves nothing less.