A hotel tax (or accommodation tax, transient occupancy tax, or destination marketing fee) is a tax or fee applied to short-term accommodations like hotel and motel rooms. Some Canadian provinces authorize municipalities to levy hotel taxes, while others restrict or prohibit them. Where permitted, hotel taxes typically range from 2-5% of room charges. Revenue may be dedicated to tourism promotion, convention centre operations, or general municipal purposes. The rationale is that visitors benefit from municipal services and amenities, so should contribute to their cost. Hotel taxes are politically attractive because they fall primarily on non-residents (voters) rather than local taxpayers. However, the hospitality industry argues hotel taxes make destinations less competitive and may reduce tourism. Implementation varies: some municipalities collect directly, while others delegate to hotel associations that apply voluntary destination marketing fees.