USA – Los Angeles (LA) is set to introduce a 1.5 per cent fee on room rates for hotels larger than 50 rooms with the aim to raise an estimated US$10-11m annually to promote the city as a worldwide tourist destination.
The new fee is said to be supported by the majority of hoteliers and while the city currently spends $11.4m a year on promoting itself the LA Convention and Visitors Bureau says this spend is drastically less than other competing cities such as Las Vegas ($71m) and San Diego ($24m).
"We've been non-competitive in the convention business and tourism business for years," manager of the Renaissance Hollywood Hotel and Spa and fee supporter, Bruce Gorelick tells newspaper The LA Times. "We've explored this for quite a while and the recession just makes it more urgent."
The funds raised would be used by the Los Angeles Tourism Marketing District Management Corporation, a non-profit organisation, to promote the city internationally.
The 192 large hotels are expected to vote on the proposal in September following a vote from the City Council in two weeks time.
