Prices at local hotels could go up if City Council approves a proposed new tax.
City spokesperson Karen Lewis tells City Councillors they'll be presened with a draft version of the tax in the new year.
If it's approved, Lewis explains, "We estimate that such a tax could generate anything from $1.3 million to $2.5 million, depending on the rate selected by Council,"
Provincial rules mean the city would have to donate half the money gathered through the tax to a non-profit tourism organization of their choice.
Lewis points out that it could be good news for the city's chances of hosting major sports events.
"When we met with the hotel association in July, this area was also of interest to them, that some of these funds--if the tax is approved--could be used to build up facilities in the community,"
She adds that many other cities already have a hotel tax, with some charging hotel guests as much as 4%. (File Photo)