Oregon’s vibrant tourism industry stands at a legislative crossroads. The 2026 Oregon Legislative Session, a brief 35-day sprint starting February 2nd, brings significant potential changes. These changes impact how tourism is funded, how it’s governed, and how businesses navigate liability. Key stakeholders are actively engaging to shape these critical decisions.
Funding Under Fire: Lodging Taxes in Focus
Lodging taxes are central to the debate. Proposals seek to allow cities more flexibility. They want to divert some lodging tax revenue from destination marketing. This money could instead fund general government services. Travel Salem and the Oregon Restaurant & Lodging Association (ORLA) oppose this shift. They argue it undermines efforts to attract visitors. This funding is vital for economic growth and job creation in Oregon.
Furthermore, a statewide lodging tax increase is under consideration. The current 1.5% tax could rise to 2.75%. A portion of this proposed increase is earmarked for conservation. The bill (HB 4134) would generate funds for wildlife and habitat protection programs. Defenders of Wildlife strongly supports this initiative. However, the ORLA views such tax hikes cautiously. They see it as a potential gateway to more future taxes. The Oregon Destination Association also opposes HB 4134. They argue against raising taxes during economic recovery.
Some cities, like Bend, also seek flexibility. They want to use lodging taxes for infrastructure. Tourism strains local services like police and fire departments. This creates an ongoing discussion about where these tourist-generated funds should best be allocated. Tourism is a significant economic driver for Oregon. It supports many jobs and generates substantial tax revenue.
Liability Reform: Protecting Recreation Businesses
Recreation liability laws are another major concern for Oregon’s tourism sector. A 2014 Oregon Supreme Court ruling effectively nullified liability waivers. This ruling has had far-reaching consequences. Businesses now face escalating insurance premiums. This makes operating more expensive for many recreation providers. Consequently, costs for consumers have risen. Fewer recreational opportunities are available to families.
A bipartisan coalition of lawmakers has introduced the Oregon Recreation Commerce and Affordability Act (ORCA Act). This bill, SB 1593, aims to re-establish the use of liability waivers. It seeks to align Oregon’s legal standards with those in other Western states like California and Washington. Proponents argue this reform will stabilize insurance markets. It will also help keep recreation affordable and accessible. This is particularly important for rural communities. Many depend heavily on recreational tourism.
Industry Advocacy and the Short Session Pace
Key organizations are actively lobbying lawmakers. Travel Salem is organizing legislative briefings. These events aim to inform industry partners and strategize advocacy efforts. Greg Leo of Travel Salem and Greg Astley of the Oregon Restaurant & Lodging Association are prominent figures in these discussions. The Oregon Restaurant & Lodging Association advocates for business interests on issues like lodging taxes and liability.
The 2026 session is a short session. It runs for just 35 days. This compressed timeline means swift action is necessary. Legislators must address complex issues quickly. Budget challenges and other state priorities also compete for attention.
The outcome of these legislative proposals will significantly shape Oregon’s tourism landscape. It affects how visitors explore and enjoy the state. It also impacts the businesses that sustain these experiences. The industry awaits key decisions from the state legislature. These decisions will influence Oregon’s economic future.
