Richmond visitors could soon be paying 2% more fees when staying in hotels, motels — here’s why

RICHMOND, Va. (WRIC) — A new proposal could require visitors to pay an extra 2% fee for their accommodation in Richmond with the proceeds going towards funding the local tourism industry.

The requested resolution — proposed by Richmond City leaders — will be discussed at the Richmond City Council meeting on Monday, June 12. Should the resolution be adopted, the City would establish a Tourism Improvement District (TID).

The proposed district would include all lodging businesses — hotels, motels, etc. — with 41 rooms or more within the boundaries of Richmond. The district would remain in effect for 10 years — from July 1, 2023, to June 30, 2033.

“TIDs use special benefit assessments, rather than general taxes, to raise revenue for destination marketing and tourism promotion,” the ordinance request explains. “Funds raised through these assessments cannot be diverted into other government programs and can only be spent on programs that benefit those who pay into the district.”

The district budget will be paid for using an initial annual fee of 2% from room rental revenue, paid monthly. Fees will not be collected on stays exceeding 30 consecutive days.

According to the resolution, the TID annual fee budget for the initial 10 years of operation will be approximately $1,929,779 — with 60% of that going towards marketing to promote participating lodging businesses.

Richmond Region Tourism will be the administering nonprofit of the project, creating a subcommittee tasked with overseeing the programs and services of all TIDs in the region.