ASHEVILLE, N.C. (828newsNOW) — Buncombe County’s tourism agency is proposing a $27 million budget for the coming fiscal year that continues to heavily invest in marketing Asheville and the surrounding region while drawing millions from reserves to balance spending.

The proposed fiscal year 2026-27 budget ordinance for the Buncombe County Tourism Development Authority calls for $27.05 million in operating expenditures, with more than two-thirds of that funding dedicated to advertising and promotional efforts aimed at attracting visitors.

Under the proposal, the TDA would spend about $18.35 million on marketing, making it by far the largest line item in the budget. Salaries and benefits account for another $5.05 million, while business development activities are budgeted at just over $2 million.

The authority projects collecting approximately $23 million in occupancy tax revenue during the upcoming fiscal year. To cover the remaining expenses, the budget would draw about $4.05 million from the agency’s fund balance, or reserves.

The budget comes as Asheville’s tourism industry continues to recover and adapt following the impacts of Tropical Storm Helene, which disrupted travel throughout Western North Carolina and raised questions about how tourism tax dollars should be spent during recovery efforts.

In addition to the operating budget, the ordinance includes several smaller funds administered by the TDA.

The Tourism Product Development Fund would receive $30,000, while the Legacy Investment From Tourism Fund is budgeted at $20,000. The authority also proposes a $427,632 earned revenue fund supported through a combination of earned income and previously accumulated fund balance.

The spending plan is scheduled to be considered by the TDA board later this month.

Tourism remains one of Buncombe County’s largest economic drivers, generating hundreds of millions of dollars in visitor spending annually and providing the occupancy tax revenue that funds the TDA’s marketing, destination management and tourism-related initiatives.

The proposed budget highlights the authority’s continued focus on attracting visitors while maintaining operations and tourism development programs during the coming fiscal year.