In South Tahoe, owners may have more reasons to get out of their timeshares as the fee for such services have increased. Other accommodations which are included in the per-night hike are motels, hotels and private lodgings as levied by the South Lake Tahoe Tourism Im¬prove¬ment District to promote the region.
Last December, the board voted to increase the assessment fee to $3 per night for hotels and motels, and $4.50 for property management companies and timeshares which is a more than $1 increase from previous rates. The money then will be used by the Tourism Improvement District for marketing campaigns.
According to district Chairman Jerry Bindel, also the former president of the South Lake Tahoe Lodging Association, marketing is the life blood that drives business in the region. He added that people know about Lake Tahoe but we have to remind them, especially when we have to compete against tourist destinations like Napa and Sonoma, Monterey and San Diego.
Meanwhile, visitors have complained to the city of South Lake Tahoe regarding the fee, even though the city does not directly benefit from it. Some residents have confused the assessment fee with the transient occupancy tax which is a 10% per night assessment on all lodging operations in the city of South Lake Tahoe. Unlike the fee, which goes to pay for marketing, room tax is a revenue stream for the city and goes toward funding services such as police, fire and snow removal.
Increasing fees as we all know are the most common reasons why a number of owners want to get rid of their timeshares. In South Tahoe, the increased fee may aim to promote the area, but it has also its corresponding drawbacks such as the impact on vacationers and timeshare owners.