cbs3_blue-on-white_2013 Philly_KYW_new Philly_94WIP_new CBS Sports Radio 610 Philly_WPHT_new

Latest News

Philadelphia Hotel Owners Change Stance On Hotel Tax Hike

(A Holiday Inn at 4th and Arch Streets in Old City Philadelphia.  File photo)

(A Holiday Inn at 4th and Arch Streets in Old City Philadelphia. File photo)

Mike Dunn

Reporting Mike Dunn

Check Out

By Mike Dunn

PHILADELPHIA (CBS) — Hotel managers and owners in Philadelphia have done an about-face and now say they oppose a plan to raise the city’s hotel tax. The group changed its stance Thursday as a city council committee approved the plan.

When the tax hike proposal was first introduced, the Greater Philadelphia Hotel Association said it supported the plan so long as the extra cash was earmarked for two groups that promote tourism. But a week later, the Association’s chairman, Jim Gratton, told a city council committee his group now opposes the measure. The hoteliers, he said, were refused stronger representation on the board of the Greater Philadelphia Tourism Marketing Corporation.

“So at this point,” Gratton says, “until that is ironed out, we as an association are withdrawing our support to this bill.”

The proposal would raise the tax from 1.2% to 1.5%, a hike estimated to costs guests about an extra fifty cents per night.

The revenue, estimated at $2-million a year, would be evenly split between the GPTMC and the Convention and Visitors Bureau.

Despite the opposition of the hotel group, Council’s Finance Committee approved the tax hike and a final vote is expected next week.

Listen Live!

Follow CBS Philly

Like us on foursquare

Now on CBS Philly

nowon lovearts1 Now on CBS Philly nowon kidcast 03161 Now on CBS Philly nowon dec12 rac Now on CBS Philly  Now on CBS Philly nowon 3onyourside Now on CBS Philly nowon deal Now on CBS Philly dunkin homepage tile Now on CBS Philly  Now on CBS Philly