New Orleans Authority proposes hotel and food taxes for convention center expansion

House Bill 298, introduced in Louisiana on April 2, 2025, is poised to reshape the landscape of New Orleans' convention and tourism sector. The bill primarily aims to fund the expansion of the New Orleans Convention Center through a series of new taxes, including a one percent occupancy tax on hotel rooms and an additional tax on food and beverages sold in the area.

The legislation outlines a five-year capital plan for the convention center, which includes the development of a headquarters hotel and additional riverfront enhancements. These projects are designed to bolster the local economy by attracting more visitors and improving infrastructure around the convention center. Notably, the bill emphasizes that any development must not interfere with existing transportation routes, ensuring that access to the Port of New Orleans and local rail services remains intact.

However, the bill has sparked debates among lawmakers and stakeholders. Critics argue that imposing new taxes could deter tourism and burden local businesses, particularly smaller food service establishments that may be exempt if their annual receipts fall below $500,000. Proponents, on the other hand, assert that the investment will ultimately lead to greater economic benefits and job creation in the long run.

The implications of House Bill 298 extend beyond immediate financial considerations. If passed, it could significantly enhance New Orleans' appeal as a convention destination, potentially leading to increased tourism revenue. Experts suggest that successful implementation of the bill could set a precedent for similar initiatives in other cities looking to revitalize their convention centers.

As the bill moves through the legislative process, its fate remains uncertain. Lawmakers will need to weigh the potential economic benefits against the concerns of local businesses and residents. The outcome could redefine New Orleans' tourism strategy and its capacity to host large-scale events in the future.