Minneapolis hotels seek tourism tax district

Nearly three quarters of Minneapolis hotels want to start an improvement district that would tax room bookings to help pay for tourism efforts.

Why it matters: The city is finally starting to see a significant tourism rebound and officials hope that the funds — expected to eventually hit $6 million to $7 million annually — will help lure more visitors.

State of play: Meet Minneapolis — the city's convention and visitors bureau — needs 51% of hotels to opt in, per state legislation that passed in 2023. CEO Melvin Tennant said 73% are on board, but they want to get even more "to show that this is a mandate."

• The improvement district would also need City Council approval.

How it works: Tennant said Meet Minneapolis is looking at a 2% surcharge on bookings. The legislation requires the money to go toward new programs.

• That could mean a marketing push into a city like Chicago, where Meet Minneapolis doesn't have a presence, he said.
• It also could pay for the organization to attend more trade shows, fund new Minneapolis festivals, or even help with workforce development for hospitality businesses struggling with staffing.