Published on March 20, 2026
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Hotels Joins New York, Los Angeles, Las Vegas, Miami, and San Francisco as Chicago moves to strengthen its tourism economy with a newly approved hotel tax increase. The Chicago City Council has passed an ordinance raising the hotel tax to 19% for large downtown properties, up from 17.5%, targeting hotels with 100 or more rooms. This strategic move is designed to boost funding for Choose Chicago, the city’s official destination marketing organisation, and to attract more conventions, major events, and visitors in the years ahead.
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The tax increase is expected to generate significant funding for the city’s tourism initiatives, helping to amplify Chicago’s global appeal and enhance its position as a major hub for business and leisure travel. The vote on Ordinance 2026-0022544 was a key step in the city’s efforts to invest in tourism and ensure that it continues to thrive as a key economic driver for the region.
The Impact of the New Tourism Tax
The 19% tax rate will be applied to hotel room rates in the city’s downtown area and will include combined city, county, and state taxes. While the tax increase affects hotels with 100 or more rooms that choose to opt-in, it is expected to apply to a significant number of properties in Chicago’s central business district, which is home to many large hotels catering to both tourists and business travelers.
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By raising the hotel tax, the city aims to generate the necessary funds to boost tourism marketing programs, increase citywide events, and attract new business opportunities. The funds will specifically support Choose Chicago, the city’s tourism bureau, allowing the organization to increase its outreach efforts, advertise Chicago as a prime travel destination, and attract high-profile conventions, conferences, and festivals to the city.
Tourism has always been a major contributor to Chicago’s economy, with the city seeing millions of visitors each year. The additional funding will allow the city to remain competitive in the global tourism market and adapt to shifting travel trends.
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Tourism Improvement District (TID) to Drive Growth
As part of the ordinance, the city also approved the formation of a Tourism Improvement District (TID), which will specifically manage the new tax revenue. The TID will focus on funding initiatives that aim to increase Chicago’s visibility and appeal as a tourist destination, making it easier to attract high-profile events, conventions, and international visitors.
The TID is designed to enhance the city’s tourism infrastructure and create a more vibrant tourism ecosystem by providing resources for marketing campaigns, promotional events, and tourism-related projects. With the enhanced funding in place, Chicago hopes to further expand its tourism base and attract new visitors to the city, boosting both the local economy and the broader region.
The creation of the TID marks a new chapter in Chicago’s efforts to cultivate a more dynamic and globally competitive tourism industry. By targeting specific growth areas within the tourism sector, Chicago aims to solidify its position as one of the top destinations for conventions, events, and international travel.
Aiming for Major Events and Conventions
Chicago’s tourism strategy is aligned with its ambition to attract larger conventions and events to the city. Earlier this year, the Democratic National Committee (DNC) advanced bids from multiple cities, including Chicago, for future events. As part of its advisory process, the DNC considered a variety of factors, including a “commitment to selecting a city that shares Democratic values,” which could further boost Chicago’s tourism profile.
In addition to political events, Chicago has long been a sought-after destination for major conventions, trade shows, and festivals. The city is home to iconic venues such as McCormick Place, the largest convention center in North America, and boasts a variety of cultural attractions, including world-class museums, theaters, and music venues. The new tax revenue and the formation of the TID will enable the city to further position itself as a top destination for international events and conferences, increasing its visibility and importance as a global business and cultural hub.
What Travelers Can Expect in Chicago’s Future Tourism Landscape
For travelers, Chicago’s tourism industry will continue to offer a broad range of experiences that highlight the city’s unique blend of history, culture, and modernity. Visitors can look forward to a city that is not only a leading business hub but also a vibrant cultural destination, known for its architecture, art, food scene, and diverse neighborhoods. Whether you’re visiting for leisure, attending a major conference, or exploring Chicago’s cultural landmarks, the city’s rich offerings ensure a memorable experience for all types of travelers.
As the city invests more heavily in tourism, visitors can expect increased promotional efforts to showcase Chicago’s attractions and events. With the introduction of the TID and additional funding for tourism marketing, Chicago is setting itself up to attract more visitors and solidify its position as a premier destination on the world stage.
The Path Forward: A Bright Future for Chicago’s Tourism Industry
The hotel tax increase and the creation of the Tourism Improvement District are key steps in Chicago’s broader strategy to grow its tourism industry in the coming years. With the added resources, the city aims to increase its global competitiveness and continue its tradition as a top destination for business and leisure travelers alike.
As Chicago moves forward with these initiatives, travelers can look forward to an even more vibrant and accessible city, with enhanced tourism experiences, a growing slate of high-profile events, and a renewed commitment to showcasing all that the Windy City has to offer.
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Tags: Chicago convention business, Chicago hotel tax increase, Chicago spring break tourism, Chicago tourism marketing, Chicago travel 2026

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