Council Panel Urges Hike in Hotel Bed Tax
A City Council committee on Wednesday recommended raising the hotel bed tax from 12.5% to 14% to pay for tourism promotion offices in Chicago, New York, Washington and Tokyo aimed at boosting Los Angeles’ image to outsiders.
The three U.S. cities produce a large share of the nation’s convention business, officials said. The Tokyo office would help attract Japanese tourists who used to pour dollars into Los Angeles before last year’s civil disturbances diverted many travelers elsewhere.
The 1.5% increase in the tax imposed on hotel rooms, approved by the Budget and Finance Committee, must face the full council. The revenue raised by the tax hike would be divided between the Los Angeles Convention and Visitors Bureau, which would get about $5 million a year to open the satellite offices, and the city’s general fund, which would get the remaining $2.5 million.
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