Minneapolis council proposes to boost tourism by… imposing new tax on tourism

In a state increasingly renowned for bad public policy, it is still possible to be surprised. Take this headline from the Star Tribune:

Minneapolis council to consider new 2% fee on hotel rooms to boost tourism

You read that right. To solve an apparent shortage of tourists, the Minneapolis city council is proposing to impose a tax on the tourists that do come. The Star Tribune reports:

Three Minneapolis City Council members have proposed a new 2% fee on hotel rooms that would be used to promote tourism.

…

Council Members Robin Wonsley, Katie Cashman and Michael Rainville are sponsoring the ordinance, which would allow a 2% “service charge” on the sale of rooms at hotels, motels, boarding houses, bed and breakfasts, and other buildings with 50 or more rooms for rent.

This tax will be passed onto the tourists. Being a tourist in Minneapolis will become more expensive. Fewer people will choose to become tourists in Minneapolis as a result. This is the exact opposite of the tax’s apparent aim.

What is especially curious about this is that there isn’t a problem to solve, apparently. The Star Tribune reports:

Minneapolis sold a record 680,000 hotel rooms during summer 2024, according to Meet Minneapolis, setting post-pandemic highs for summer occupancy, room demand and room revenue. The occupancy rate last August was over 70% — the highest since October 2019.

So not only are we going to tax tourism in the hope of getting more tourism, but there isn’t, it seems, a shortage of tourists in the first place.

If all you have is a hammer…