Hotels to Raise Bed Tax to Promote Arts

After a months-long campaign to boost the city’s image as a cultural destination while helping the artists who shape its personality, hotels will increase their bed taxes from 10% to 12% beginning July 1.

A measure signed Tuesday creates a special business district encompassing the city’s 26 hotels, motels, inns, and bed and breakfasts, all but three of which recently voted to assess themselves the higher tax.

Mayor Paul Freeman, a leading proponent, estimates that the tax will initially generate $640,000 annually--an amount that would double once the Treasure Island resort is complete.

Half the new funds will go to the Visitors Bureau to market Laguna Beach as a cultural tourism spot. The city Arts Commission, the Art Institute of Southern California, the Laguna Art Museum and Laguna Playhouse each would get $80,000.

The $157,000 that the Visitors Bureau already gets from the city annually would go back to the city, to be used for the arts or other crucial needs. Artists should start seeing direct benefits by the fall.