(The Center Square) – Illinois state Rep. Dan Ugaste doesn’t see the value in a new hotel tax now being proposed by Chicago tourism officials.
As part of Choose Chicago’s vision, the city’s hotel tax, already the highest in the country among convention cities, could jump to 18.9% at downtown venues. The so-called Tourism District Plan looks to add an extra 1.5% surcharge on room rates for stays at loop hotels with at least 100 rooms.
“I think even if the Tourism Bureau needs more money they need to find it out of existing funds,” Ugaste told The Center Square. “We can’t keep increasing prices on things. It’s chasing everyone away. Chicago has always been a great destination for tourism and conventions and we just aren’t getting what we used to because of how much it costs to come here.”
Even with the city’s $29 million annual budget being roughly just half of what some rival cities allocate for such promotions, Ugaste argues more taxes and higher fees are not the solution.
“Unfortunately, the party in power in this state always thinks the answer to everything is to throw more money at it,” he added. “Right now, the answer seems to me to be the exact opposite. We need to look to see how we can decrease taxes and costs so that people will come here.”