LEWES, DE – The City of Lewes is considering introducing a 3% lodging tax. The proposal has sparked debate among residents including strong opposition from local hotels.
Former Lewes Mayor Ted Becker, managing partner at The Inn at Canal Square, voiced opposition at a recent Mayor and City Council meeting, arguing that the tax would harm the small-town appeal that local hotels offer compared to larger chains.
“All seven of the Lewes hotels offer guests an authentic experience of a small town with a beach, that respects history and builds community on top of it, that is what Lewes is” Becker said.
Becker added the hotels already struggle to compete with big chains on Route 1, notably features like rewards programs.
The proposed tax aims to generate additional revenue for the city to contribute to community services, such as the fire department. Currently, hotels in Lewes pay an 8% state tax, but no city tax.
Some believe the additional tax is justified, given the strain tourists place on local infrastructure,
“It’s a reasonable tax, given that tourists put a lot of pressure on the town’s infrastructure,” said visitor Greg Pimkerd. “As long as the tax isn’t over the top, it makes sense. We wouldn’t be opposed to contributing to help maintain this wonderful little town.”
However, other visitors expressed concerns that higher costs could deter tourists from choosing Lewes as a destination.
“Charging additional fees is going to deter people from coming here. There are other places that are cheaper. I would probably just stay away from this area,” said visitor Stephan Brockner
No decision was made at the council meeting. The council is expected to revisit the topic at its August 2 meeting.