New DC hotel tax to raise $20m over four years

North America | Guest Author
10 January 2023, 10:27am 

The Council of the District of Columbia in the US has approved legislation for a temporary 1% increase in the hotel tax that will go to Destination DC (DDC) to market the destination. Authorities believe the move will raise more than $20m per year for four years. The temporary fee will make DC’s tax rate 15.95% from April 2023 through March 2027. “As we compete globally with every other destination trying to regain market share, these dollars will give us the wherewithal to remain equally as competitive and enhance our marketing and sales efforts to draw meetings and events that leave a lasting impact on the local economy,” said Elliott L. Ferguson, II (pictured), president and CEO, DDC. DDC, the official destination marketing organisation for Washington, DC, says it has plans to welcome 18 citywide conventions (defined as meetings, bringing 2,500 room nights to the city on peak), with an estimated 363,863 room nights, so far in 2023. The convention sales and services team continues to highlight resources for business event strategists only available in the nation’s capital under its “Connected” positioning. “There’s no place like Washington, DC to leverage intellectual capital and access leaders and policymakers,” says Melissa A. Riley, vice-president, convention sales and services. “Between investment in sustainability and growing start-ups, the city continues to be a leader in innovation. It’s also dedicated to progress, diversity and inclusivity and has long been a place for people to put their power of free speech to work, where impactful demonstrations have shaped the future of the United States. Washington, DC is the country’s original meeting centre to make positive social change.” With $9.3bn in development, investment in the city continues, including:

  • The new Metrorail Silver Line connects Washington Dulles International Airport to downtown DC. Dulles airport will add a LEED Silver-certified, $675m, 14-gate concourse in 2026.
  • Phase two of the Wharf opened in October 2022, expanding the sustainable waterfront area by a mile with public green spaces, a new Pendry hotel and two Gordon Ramsey restaurants. The Wharf is designed to achieve LEED ND Gold.
  • Part of the greater Southwest neighbourhood, the waterfront area is designated the first-ever Mobility Innovation District (MID).

There are more than 26 new hotels or renovations in the pipeline, adding over 5,892 new or renovated rooms in eight neighbourhoods.

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