Oklahoma City voters approved a hotel sales tax increase on Tuesday. The new rate, a jump from 5.5% to 9.25%, represents the first increase in 20 years.

During the campaign, city leaders emphasized the need to implement a tax rate comparable to that of cities of similar size, arguing that tax revenues from increasing the hotel sales tax would provide the necessary funds for tourism-related improvements and investments in Oklahoma City.

Much of the nearly $12 million expected from the increase will be spent on tourism promotion. Additional funds will be allocated for event sponsorships and improvements to the fairgrounds and convention center. The funds may not be used for operating expenses.

Opponents of the vote, which reached 33.6% at the end of election day, did not run a well-organized campaign against the initiative. However, critics claimed that an increase could deprive the city of businesses and unfairly burden the homeless population. However, University of Colorado economics professor Dr. Travis Roach believes a negative outcome is unlikely.

“I have little doubt that the hotel tax rate is a deciding factor in the decision between two cities,” Roach said. “If that’s the case, then this conference is very selective and picky about their travel. If I see myself as a consumer, I don’t look to see what the hotel tax is before I travel.”

Roach acknowledged that there are city dwellers who rely on hotel rooms. He also pointed to severe weather in Oklahoma as a common problem that drives locals into hotels during weather-related power outages or worse.

“I ultimately voted for this measure because I think it’s important to provide more city funds for city purposes like maintaining the fairgrounds,” Roach said. “However, by law, those funds can only be used for our convention center or the fairgrounds and not for general government revenue for all the other purposes we also have, like paving streets or providing appropriate services for our senior citizens.”

The Greater Oklahoma City Chamber of Commerce celebrated the successful initiative as the beginning of a new era for tourism development.

“Whether you voted for it or not, you’re going to benefit from it,” said Christy Gillenwater, president of the chamber. “Our visitors help fund necessary and needed city services. And that’s phenomenal. We’re certainly grateful to those who supported it. But just know that everyone in the community is going to benefit from this increased investment.”

The new tariff comes into effect on October 1st.