This story originally ran on VeloCityOKC.com.
Voters in Oklahoma City have approved a measure to increase the city’s hotel tax from 5.5% to 9.25%, a move expected to significantly bolster tourism and help our city tell its story. The new rate, effective Oct. 1, 2024, will generate an estimated $11.6 million annually, funding efforts to attract more visitors and support large-scale events.
The hotel tax, applied to overnight stays in hotels and home-sharing properties, will be used to enhance marketing and advertising and to improve key venues like the OKC Fairgrounds and OKC Convention Center, which are vital for hosting national and international events.
“This is a big victory for our city,” said Mayor David Holt. “By giving us the resources to compete—without taxing our residents—this solidifies our status as a tourist destination. Those visitors fuel our economy and help fund our core city services. Our voters’ commitment to progress remains strong. We continue to do what it takes to remain a top 20 city.”
The funds will be allocated as follows:
75% for tourism promotion, directly funding initiatives to draw more visitors.
13.3% for event sponsorships.
6.7% for improvements at the OKC Fairgrounds, not including operational costs.
5% for upgrades at the OKC Convention Center, not including operational costs.
With the increase, Oklahoma City’s total tax on hotel stays will be 17.875%, still lower than several peer cities, including Memphis (19.75%), San Antonio (19%), and Kansas City (18.35%).
Zac Craig, President of Visit Oklahoma City, celebrating the voters’ decision, stated, “On behalf of Visit Oklahoma City and the nearly 35,000 locals that work in hospitality, I want to thank the citizens of OKC for voting in support of tourism and the vital role it plays in our community and economy. We’ve built a dynamic destination, and this increased funding allows us to attract visitors that are the lifeblood of our districts, small businesses, hotels and attractions.”
Oklahoma City’s hotel tax was first introduced in 1972 as a 2% “room tax” to fund tourism promotion. It was last increased in 2005, bringing the rate to 5.5%. This latest adjustment marks the first increase in nearly two decades, ensuring the city can keep pace with its growing role as a top tourist destination.
“Oklahoma City’s hotel room tax helps our city thrive by attracting national conventions and sporting events and providing support for our venues and visitor services,” added City Manager Craig Freeman. “This update allows us to better keep pace with OKC’s growth and our competitive peer set of destinations.”
The approval of this hotel tax increase is more than just a boost for tourism; it’s a catalyst for economic growth, job creation, and enhanced city services in Oklahoma City. By drawing more visitors, the city will generate additional revenue that directly supports local businesses, from hotels to restaurants to retail. These funds will not only help improve key venues like the OKC Fairgrounds and Convention Center but will also fuel the local economy, creating jobs and funding vital city services.
