Minneapolis Implements Hotel Tax to Revitalize Tourism
Americans are flocking once again to Minneapolis, Minnesota, with the Twin Cities seeing a rebound in visitors.
Many local hotels are pushing to create a tourism improvement district (TID), which would implement a hotel tax in order to fund different tourism initiatives.
In a significant move to invigorate its tourism sector, Minneapolis is proposing a hotel booking tax. This decision comes on the heels of a remarkable summer that welcomed tourists back with open arms and cheerful smiles. Last summer, Minneapolis attracted a record-breaking number of hotel guests, bringing in $131 million—an impressive 8% increase compared to the summer of 2019, according to the statistics provided by Meet Minneapolis, the city’s visitor bureau.
During this bustling summer, the city saw roughly 680,000 hotel room bookings, translating to a commendable 68.1% occupancy rate. It is a testament to Minneapolis’s charm that nearly 116,000 attendees poured into the downtown area for events hosted at the Minneapolis Convention Center, which featured around 50 meetings, conventions, and trade shows.
Underpinning this vibrant resurgence in tourism is state legislation passed in 2023, which requires at least 51% of hotels to opt in, alongside approval from the City Council, to establish the tourism improvement district. It’s a collaborative effort aimed at sustaining the city’s growing appeal.
Melvin Tennant, CEO of Meet Minneapolis, expressed optimism, noting that 73% of hotels are already on board with the proposal. His vision is clear: to foster a community-driven approach that will further solidify Minneapolis’s position as a must-visit destination. The group is looking to represent a strong mandate, encouraging even more hotels to join the initiative.
As part of this proposed TID, a 2% surcharge on hotel bookings is under consideration, a modest addition that could yield significant funding for tourism initiatives. It’s a small price to pay for the experiences that await visitors, from the serene beauty of the Chain of Lakes to the vibrant arts scene found in Minneapolis’s many galleries and museums.
While deliberations are ongoing, Minneapolis stands at a pivotal crossroads. This hotel tax may not only breathe new life into developers and local businesses like the iconic Mall of America and the bustling North Loop neighborhood but also enrich the visitor experience, offering insights into the heart of what makes Minneapolis a vibrant city. Ironically, did you know that the Mall of America is so large that it could fit 32 processional floats from the Macy’s Thanksgiving Day Parade inside?
