Chicago’s City Council approved a Tourism Improvement District (TID) which will impose a 1.5% assessment on stays at qualifying hotels in the following areas: Central Business District, McCormick Place, the Illinois Medical District and extending south to Hyde Park.
The initiative is expected to generate $40 million annually for Chicago’s promotional efforts aimed at events and tourism. The fee went into effect on May 1.
The TID is a five-year initiative with the possibility to be extended. “These funds are protected and cannot be diverted to other uses, ensuring every dollar is reinvested directly into growing our tourism economy, supporting local businesses and sustaining jobs across Chicago,” said Kristen Reynolds, president and CEO, Choose Chicago.
[Related: Choose Chicago CSO Predicts Bright Future for Tourism and Economy]
The TID hopes to grow Chicago’s global presence. Reynolds said the city’s tourism has been “significantly underfunded for years,” especially in comparison to other destinations such as Orlando and Las Vegas who invest hundreds of millions of dollars annually.
“These funds will significantly enhance Chicago’s ability to market our assets, secure new conventions and meetings, attract major events and drive overnight stays,” Reynolds said.
“More importantly, this investment is expected to deliver substantial returns—fueling billions in visitor spending, generating meaningful tax revenue and supporting thousands of jobs across the city.”
Chicago’s tourism industry generates $20 billion in economic impact annually.
“There has been strong alignment around the need for Chicago to invest in itself and remain competitive,” she said.
