Officials in the U.S. city of Chicago have approved a significant increase in hotel taxes, raising the combined rate on certain hotel stays to nearly 20 percent as authorities seek to strengthen tourism promotion and attract major global events.
The Chicago City Council voted to raise the tourist tax on hotel rooms in parts of the city to 19%, up from about 17.5%. The new rate applies mainly to larger hotels in the downtown and surrounding districts with more than 100 rooms that opt into the programme.
City leaders say the move is designed to boost marketing and event-bidding efforts through a newly created Tourism Improvement District (TID). The district will help fund campaigns run by Choose Chicago, the city’s official destination marketing body responsible for promoting Chicago to visitors and conference organizers.
Revenue generated from the higher tax is expected to support advertising campaigns, tourism development and bids for major conventions and events that can bring significant economic benefits to the city. Officials have indicated that attracting large gatherings and international events remains a key part of Chicago’s tourism strategy.
Among the events being targeted is a future hosting opportunity for the Democratic National Convention, which requires cities to submit competitive bids and commit funding toward organizing and hosting the gathering.
Mayor Brandon Johnson welcomed the council’s decision, describing Chicago as a leading destination for tourists, business travelers and large-scale conventions. City officials say the added resources will help strengthen the hospitality sector and support economic growth tied to travel and events.
However, the increase has also sparked debate among travelers and observers, with some critics arguing that a nearly 20% hotel tax could make visits more expensive and potentially discourage some tourists. Supporters, on the other hand, believe the investment will ultimately bring more visitors and business to the city.
The policy is part of broader efforts by cities worldwide to fund tourism promotion and manage visitor economies through targeted levies on accommodation and travel-related services.
