Finance Committee backs hotel tax hike to rev up tourism in Chicago

February 27, 2026 - 18:27

In a decisive move aimed at revitalizing the city's vital tourism sector, Chicago's Finance Committee has overwhelmingly endorsed a significant increase to the local hotel tax. The measure passed by a nearly unanimous voice vote.

The proposal raises the tax on hotel rooms within a designated Tourism Improvement District to 19 percent, setting a new national record for the highest such rate. Proponents argue the substantial revenue generated is essential for funding expanded tourism marketing and citywide promotional campaigns. The goal is to attract a greater number of conventions and leisure travelers, driving economic activity for local businesses, restaurants, and cultural institutions.

Officials emphasized that the funds will be directly reinvested into strategic initiatives designed to elevate Chicago's competitive edge as a premier destination. The focus will be on large-scale advertising, modernized convention facilities, and enhanced visitor services. The full City Council is expected to consider the committee's endorsement for final approval in the coming weeks.