Visitors to Burbank may have to pay a little more to stay overnight as the city implements a new assessment on larger hotels to help pay for a tourism district.
The assessment is expected to generate $2.6 million over five years to market and promote local hotels to attract more visitors, who will theoretically patronize local businesses and boost sales tax revenues, officials said.
As part of the tourism district, local hotels will be assessed 1% of their monthly revenues — a cost that is usually passed along to guests, said Mary Hamzoian, economic development manager for Burbank.
“This is not a tax. It’s an assessment,” Hamzoian stressed.
The City Council approved the district in a 4-1 vote last week. Councilman David Gordon dissented, saying he was concerned that raising prices in a sluggish economy is a bad idea.
The tourism district’s estimated annual budget will be $520,000, from which $416,000 will be allocated to sales and marketing. Another $78,000 will go toward administrative costs and $26,000 will be placed in a contingency fund.