Committee backs 4% hotel tax
The cost of visiting London overnight might be going up this summer if city councilors approve a proposed tax increase on hotel stays.
The proposed transient accommodation tax would raise hotel bills by an additional four per cent with revenue being split between Tourism London and City Hall.
A city committee backed the plan but not without first questioning how that revenue might actually be spent.
Hotels want City Hall’s share to fund a reserve account for tourism-based infrastructure projects.
Councillors have asked staff to start working on the tax but to prepare options for their share of the money.
The proposed tax could be in effect by June 1st and is estimated to bring in about $2 to $4 million per year.