The first draw on Winnipeg’s hotel accommodation tax to cover the RBC Convention Centre expansion loan has come due.
A report at city hall this week said the first amount owed is $981,000.
In 2015, council agreed to use the hotel levy to help pay off part of the $33 million loan guarantee by the city.
At the time, the Manitoba Hotel Association voiced opposition to the plan, saying the tax is supposed to be used to promote tourism.
It's upset that members and customers are paying for the expansion that's in direct competition with the industry.
The loans were supposed to be paid back by property tax and revenue generated from a failed hotel plan next door to the convention centre.
