Chicago City Council Approves Increase in Tourism Tax

The Chicago City Council has decided to raise tourism taxes, aiming to boost marketing programs for tourists.

Specifically, an ordinance has been voted on that raises the lodging tax for hotels in the area from 17.5% to 19%. This figure includes various city, county, and state taxes. It will affect stays at hotels with 100 rooms or more located in downtown and nearby regions.

This increase will apply to room rates for participating hotels. Additionally, the City Council has also established a Tourism Improvement District (TID), which will funnel resources to Choose Chicago, the city’s primary destination marketing organization.

The funds generated from this tax will be allocated to support marketing initiatives and help cover bidding costs for conventions and significant events. Chicago is particularly interested in hosting the Democratic National Convention, which entails a bidding fee of $1 million.

Previously, Chicago hosted the DNC in August 2024, and this month, the Democratic National Committee (DNC) has advanced bids from multiple cities, including Atlanta, Boston, Chicago, Denver, and Philadelphia.

According to the DNC, several factors are being considered for selecting cities, and they are looking for those that embody Democratic values.

After the vote, Mayor Brandon Johnson praised the decision, stating that “Chicago is a great city for tourism, business travelers, conferences, and large-scale events.” He further expressed his commitment to working with Choose Chicago to foster growth in the tourism and hospitality sector while ensuring safe and affordable communities throughout the city.

Kristen Reynolds, president and CEO of Choose Chicago, described this moment as a pivotal one for the city. He mentioned that the TID will provide enhanced resources to align with Chicago’s ambitions and vibrancy, emphasizing that this investment is set to improve marketing efforts and attract more events, ultimately benefiting the local economy.

Guy Ciparoni, chairman of the Choose Chicago board of directors, remarked that Chicago is sending a powerful message to neighboring cities in its pursuit to attract visitors.

In response to the tax increase, reactions on social media were mixed. Some felt that the hotel taxes, now at 19%, are among the highest in the nation and questioned how this would impact tourism, especially for families planning vacations. Others made more pointed critiques about local taxation practices.