A hotel tax has been officially approved by Niagara Falls Council.

The new initiative which will begin this upcoming January will see hotels charging 2 bucks per room per night as a Transient Accommodation Tax.

While the city will collect the tax revenue and keep a portion (five per cent) to administer the program, financial support for tourism promotion and destination marketing will come from a newly created Niagara Falls Hotel Association, a not-for-profit organization that will operate independently of council and distribute the funds.

The money collected is intended for big tourism oriented events like New Years Eve celebrations, fireworks,etc. and funds from property taxes and casino-hosting reserves will no longer directly fund  tourism initiatives such as the Winter Festival of Lights or Niagara Falls Tourism.

This means that hotels and motels will no longer be charging the DMF (Destination Marketing Fee), as the new Transient Accommodation Tax will replace it.

Resort and Facility Fees could still be charged, but they are not considered a tax.

The plan will be in place for five years. After three years, the partners will review the program and study its effectiveness.

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