Marina del Rey : Hotel Tax Hike Opposed

A plan to boost the hotel room tax from 10% to 12% in unincorporated areas of Los Angeles County was opposed Wednesday by a Marina del Rey hotel owner and local chamber of commerce officials who warned that the increase would be bad for business.

Abraham M. Lurie, president of a partnership that owns the Marina Beach, Marina del Rey and Marina International hotels, told a county Small Craft Harbor Commission meeting that a portion of the hotel tax revenue should be used to promote tourism at the marina. The lack of promotion has hurt occupancy at his hotels, he said.

Lurie told the commissioners that his two largest marina hotels continue to suffer substantial losses. He urged the commission, an advisory group to the Board of Supervisors, to support state legislation to create a pilot program that would divert some hotel tax revenues to marina tourism. Lurie argued that filling more hotel rooms would generate additional funds for the county from hotels, restaurants and retail sales.

After Lurie’s testimony, the commissioners delayed action for one month on a recommendation to the supervisors.

The supervisors recently approved the 20% increase in the transient occupancy tax, but final action was postponed until Wednesday’s public hearing.

The tax increase would bring the county hotel tax to the 12% level charged by the surrounding cities of Los Angeles, Santa Monica and Culver City. It would generate an estimated additional $300,000 a year for the county.