The San Luis Obispo City Council has finalized an ordinance that would allow the formation of a tourism business improvement district, or BID, to market the city’s hotel rooms.

A 2 percent levy will be placed on the gross receipts from city hotel rooms, and collections will begin in August. The district is expected to raise at least $950,000 in the first year for tourism promotion.
The city has been more successful at creating such a district than the county.
 

The proposal to establish a countywide tourism improvement district will again come before the county board of supervisors in the fall. Earlier efforts fell short because the cities with the most hotel rooms – Pismo Beach, San Luis Obispo and Paso Robles – decided not to join.