The state and local hotel occupancy taxes can discourage visitor spending in the local economy. The projects they fund often prove ineffective at attracting additional tourists and are a source of corporate welfare.
- Visitors of Texas’ most populated cities spend between 15 percent and 17.5 percent in combined state and local hotel occupancy taxes.
- High hotel occupancy taxes can discourage tourism to Texas cities and siphon away money that could have been spent in the local economy.
- There is little to no transparency about whether projects and convention centers funded by the hotel occupancy tax do increase tourism.
- Like any other private industry, the travel and tourism industry should not rely on taxpayer money for promotion and funding of its activities.