Major city hikes hotel tax to nearly 20% as tourism bosses eye future events

The increase will be applied to hotel stays at properties in the downtown and surrounding areas that contain over 100 rooms.

The city council also passed the formation of the Tourism Improvement District (TID) - which will fund Choose Chicago, the city's official destination marketing organization.

Chicago is already targeting the Democratic National Convention, which requires a $1 million bid. 

The Windy City previously hosted the DNC in August 2024.

Earlier this month, the Democratic National Committee (DNC) advanced bids from Atlanta, Boston, Chicago, Denver and Philadelphia.

Its advisory board is considering several factors, the DNC said - including a "commitment to selecting a city that shares Democratic values."

Mayor Brandon Johnson issued a press release after the City Council's vote, praising the decision.

"My administration will continue our collaboration with Choose Chicago, as we continue to build up Chicago's tourism and hospitality industry while leveraging economic growth and development to continue building safe and affordable communities across our city," he added.

Choose Chicago president and CEO Kristen Reynolds said in a press release that this marks a "transformative moment" for the city.

"With the TID in place, we now have the enhanced resources to match the ambition and vibrancy of our city," said Reynolds.

Guy Chipparoni, chair of the Choose Chicago board of directors, said in a statement, "It sends a message to our competing cities that when it comes to attracting visitors, Chicago means business."

Another X user wrote, "Democrats in Chicago will even dream up a breath tax. It's not far away."