The Chicago City Council approved a groundbreaking resolution establishing a Tourism Improvement District on March 18, a move that will provide a stable and dedicated funding source for Choose Chicago, the city’s official destination marketing organization (DMO). This vital step positions Chicago to effectively compete with peer cities, including more than 200 others with established Tourism Improvement Districts, whose DMOs benefit from significantly larger and more consistent budgets.
“This is a transformative moment for Chicago’s tourism industry,” says Kristen Reynolds, president and CEO of Choose Chicago, in a prepared statement. “With the Tourism Improvement District in place, we now have the enhanced resources to match the ambition and vibrancy of our city. This investment will allow us to amplify our marketing efforts, attract more conventions and events, and ultimately deliver significant benefits to Chicago’s economy and communities.”
Michael Jacobson, president and CEO of the Illinois Hotel & Lodging Association (IHLA), says, “Tourism is a critical economic pillar for our city, and Chicago must remain competitive. The Tourism Improvement District is a solution crafted and supported by the private sector, offering a sustainable path to enhanced tourism funding. It will help attract more visitors and events to Chicago, which will allow the tourism industry to continue to create jobs, drive economic activity, and generate long-term revenue for the city. We are thrilled that city council had the vision to approve this important investment in Chicago’s future.”
The Tourism Improvement District will generate funds through a 1.5% assessment on lodging stays at hotels with 100 or more rooms within designated zip codes, beginning May 1, 2026. These funds, projected to raise nearly $40 million annually, will be used to enhance Chicago’s presence in national and global markets, attract more leisure and business travelers, and drive economic growth for both the city and the state.
Over the next five years, the estimated impact of the Tourism Improvement District is:
- 25,000-plus jobs created
- $2.9 billion generated in visitor spending
- $63.5 million total hotel taxes generated
- $268.3 billion in total economic impact
Years in the making, the Tourism Improvement District ordinance was developed alongside—and supported by—a broad and diverse coalition of stakeholders, including the Chicago Federation of Labor, Chicagoland Chamber of Commerce, hotels, attractions, community groups, and area business owners.
“The city council’s passage of this ordinance is great news for the thousands of Chicagoans who work in and rely on a vibrant visitor industry, and the thousands more who will be employed by the additional jobs this ordinance will create,” says Guy Chipparoni, chair of the Choose Chicago Board of Directors. “It sends a message to our competing cities that when it comes to attracting visitors, Chicago means business.”
The Tourism Improvement District will be governed by a committee representing a diverse cross-section of hotel stakeholders whose properties are within the TID boundaries. This committee, which has yet to be appointed, will oversee the responsible allocation of funds, ensuring that all interests are represented and that the district delivers maximum impact for Chicago’s hospitality sector and broader economy.
The establishment of the Tourism Improvement District marks a critical step forward for Chicago, supporting enhanced marketing campaigns, meeting incentives, global event strategies, and creative partnerships.
