Major US city’s latest tourist tax hike could hurt hotel guests: Travel expert weighs in
A new Michigan bill was passed to increase the tourist tax in an effort to boost the state’s tourism marketing programs.
House Bill 6166 moves to increase the tax on guest bills at hotels/motels and bed and breakfasts (with at least 35 rooms).
From January 1 to December 31, 2030, the tax is slated to increase from 2% to 3.5% to 4% on January 1, 2031.
Travelers may face another ‘tourist tax’ when visiting some cities
State Rep. Tyrone Carter, who introduced the bill, told Fox News Digital that the money raised would go toward visiting Detroit.
A new law was passed in Michigan that allows hotels to raise their tourism tax to 3.5 percent. (iStock)
This is an “opt-in” opportunity for hotels, Carter said.
“When you’ve been at 2% for the last 20, 30 years, to go up 1%, I don’t think it’s unreasonable when you look at everything that’s happened,” Carter said.
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“It’s not going to do anything other than promote the (Detroit) area … and all the things that we have to offer and take money to promote,” he added.
Last April, Detroit drew more than 775,000 visitors for the NFL draft. (AP Photo/Paul Sancy)
“Especially after the success of the NFL draft, I thought it was great to have so many people come here from all over the country and get that new perspective, an idea of what Detroit is like,” Carter said.
Last April, more than 775,000 people visited the Detroit area for the NFL draft, according to Visit Detroit.
“We’re never going to please everybody. But I think the 1% and opt-in are like that. If you don’t want to join, you don’t have to. It’s not mandatory,” shared Carter.
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Michelle Bork, vice president of Travelmation, told Fox News Digital that she is concerned about the increase in the tourist tax.
Michigan State Representative Carter told Fox News Digital that the money will go toward promoting tourism in the Detroit area. (Roberto Machado Noa/Lightrocket)
“I have lived in Michigan for 27 years and regularly travel to many beautiful destinations around the state,” Bork said.
“By increasing the tourism tax, you’re basically asking people who live there to pay to visit their own state,” she added.
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“Most people who visit Michigan are from out of state or out of state. If it’s cheaper to visit other places, the state of Michigan could lose visitors and revenue, which would be heartbreaking for local businesses,” Bork said.
The bill is currently waiting to be signed into law by Governor Gretchen Whitmer.
