City hotel owners are looking at charging a two-per cent fee on local hotel bills to help market Hamilton as an international destination.

But their offer comes with the catch that the city be willing to pony up some money too.

The Hospitality Hamilton partner steering committee told councillors Wednesday that many of the city's hotel owners are willing to add two per cent to the cost of a hotel stay to put toward a destination marketing plan.

The plan, which co-chair P.J. Mercanti hopes will generate "hundreds of thousands of dollars per year," is to direct the money toward efforts that draw more tourists and conferences to Hamilton.

If we don't push the pedal down harder now, we're going to be potentially left behind because other cities are getting aggressive. - P.J. Mercanti

"The trickle effect will be obvious and will be felt across the city," said Mercanti, whose company, Carmen's Group, manages the Hamilton Convention Centre.

"If we don't push the pedal down harder now, we're going to be potentially left behind because other cities are getting aggressive."

The Ontario Restaurant, Hotel and Motel Association would distribute the money. The group wants to implement the surcharge in the next year, said Karen McQuade. She is the regional director of sales and marketing with Vrancor, which owns several Hamilton hotels.

Idea used in other cities

The idea isn't a new one, McQuade said. About 20 cities across Canada have a destination marketing plan, including Toronto. Only hotels which volunteer to participate would charge the extra fee.

But if hotel owners are going to charge two per cent more, they want evidence the city is invested too. Mercanti said the group wants city council to approve a $350,000 increase to the Tourism Hamilton budget for 2016.

When you come back to ask for an additional bump of $350,000 for an existing budget, you're going to the general levy for an enhancement. - Coun. Matthew Green

The budget increase would give the city department money for more employees, which the department says are needed to implement the tourism strategy city council approved last year.

Terry Whitehead, Ward 8 councillor, said the offer of the hotel fee makes him more willing to approve the Tourism Hamilton increase.

Too much subsidy?

But Matthew Green, Ward 3 councillor, wondered if the plan is taxing people twice to subsidize a private industry.

"When you come back to ask for an additional bump of $350,000 for an existing budget, you're going to the general levy for an enhancement."

The steering committee will talk more to the provincial association and local hotels in the coming weeks. The city is due to finalize its budget in the spring.