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Higher hotel taxes for 'convadium'? EconoMeter panel weighs in

Roger Showley, SAN DIEGO UNION-TRIBUNE

Friday, April 1, 2016

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Kelly Cunningham, National University System

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Kelly Cunningham

Answer: NO

Increasing the tax has negative impacts on visitors. Empirical research shows higher transient occupancy taxes decrease some amount of hotel demand. If the tax is raised, alternative uses of the funding may provide better benefits to the region than a hybrid “convadium." Other projects could include infrastructure repairs and transportation upgrades, helping homeless off the streets and increasing desirability of living and doing business downtown, investing in higher education thereby stimulating better jobs, wages, innovation, and entrepreneurship.