:
US: The Salem City Council has approved an ordinance to include short-term rentals in the city’s Tourism Promotion Area (TPA) fee.
The measure extends the existing 2 per cent overnight fee to short-term and accessory short-term rentals, bringing them in line with hotels.
The TPA, first introduced in 2019 and renewed through 2029, generates around $1 million annually to fund tourism marketing through Travel Salem.
Under the updated rules, OTAs will be required to collect and remit the fee on behalf of operators and hosts.
City officials said the change is intended to create parity between short-term rentals and traditional accommodation providers, which already contribute to the fund.
Travel Salem president and CEO Angie Villery said hotels have historically carried the cost of tourism promotion despite short-term rentals also benefiting from marketing efforts.
The move has drawn criticism from some short-term rental operators, who argue that additional fees and regulations could discourage participation and impact small businesses.
The ordinance was approved unanimously on 23 March.
Highlights:
- Salem has approved a 2 per cent tourism fee for short-term rentals.
- The fee will be collected by platforms such as Airbnb and Vrbo.
- The Tourism Promotion Area generates around $1 million annually.
- The measure aims to align short-term rentals with hotel tax contributions.
- Some operators have raised concerns about increased costs.
