LONDON, Ont. — Staying at a hotel in London, Ont. could be a little more expensive come the summer as city councillors look into a tax increase that would add an extra four per cent to hotel bills, according to CBC News.
Tourism London officials and city staff recommended to city councillors that they consider the so-called transient-accommodation tax, which could be imposed as early as June 1. The tax hike would apply to hotels, motels and other commercial properties. If formally approved, city council could also add Airbnb addresses to that list.
The proposed tax would net the city between $2- and $4-million per year — with the revenue split evenly between the tourism agency and the city.
A city committee backed the plan in an 11-to-3 vote on January 29, with a referral to send the proposal back to investigate options for spending the revenue, either in the entertainment industry or on infrastructure projects.
John Winston, general manager of Tourism London, said the funds could help improve existing entertainment facilities, as well as bring in new ones. He used the example of building a 2,000- to 3,000-seat FIFA soccer stadium.