San Diego Business Journal

City Council Approves Renewal of Tourism Marketing District

Thursday, November 29, 2012

San Diego City Council has approved a nearly 40-year renewal of the city’s Tourism Marketing District by a vote of 6-1, with Councilwoman Marti Emerald dissenting.

City officials said the district is expected to raise approximately $1.2 billion for local tourism promotion over a period of 39.5 years. The original five-year marketing district had been set to expire on Dec. 31.

The district is financed through a surcharge on hotel room bills, which was previously approved by local hoteliers. Starting Jan. 1, hotels within the city that have 30 or more rooms will pay a 2 percent surcharge, and those with 29 or fewer rooms will be assessed a 0.55 percent rate.

The surcharge is in addition to the city’s existing 10.5 percent hotel room tax, which impacts all properties.

— SDBJ Staff Report