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New Orleans hotels agree to room tax hike
New Orleans hoteliers have voted overwhelmingly to impose a new hotel tax, designed to fund city-wide tourism projects and marketing.
A law was passed last year allowing for an extra 1.75% fee to be charged by hotels, subject to a hotel industry referendum, with a two-thirds majority needed for it to be passed.
Yesterday New Orleans Convention and Visitors Bureau announced a 95% yes vote, and the extra tax will become effective April 1.
This extra revenue is expected to total up to $4 million this year, and will be split between tourism marketing campaigns, and infrastructure repairs in the French Quarter.
Tourism officials will also fund initiatives to raise the city’s profile as a convention destination.
"This is a critical funding mechanism to attract new meetings and convention business, international visitors, and generally grow our industry," said Darryl Berger, board chairman for the Tourism Marketing Corporation.
The tourism industry employs around 78,000 jobs in the New Orleans area and in 2012 the city attracted an estimated 9 million visitors.
Full-year figures for 2013 visitation are due to be released in March.
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