The Lodging Tax Grants that are provided by the Grant County LTAC are funded through the Lodging Tax applied to overnight stays within Grant County. Most major, incorporated cities within Grant County have their own LTAC that provides grants also, as you are probably aware. The tax revenues for overnight stays within those cities go back to those city LTACs to disperse.
Likewise, any overnight stays within rural Grant County (i.e. Mardon, Sunlakes, PUD parks, other non-city entities) generate lodging tax funds for the Grant County LTAC to disperse. Thus, the more overnight stays within rural Grant County, the more the LTAC funds received, and the more LTAC grants dispersed.
The basis of the question from the LTAC is how will this put more heads in beds that in rural Grant County? It is not necessarily a disqualifier or requirement but merely a question to get a feel for the impact countywide.