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Since resort fees are a mandatory fee that is not included in the advertised room rate of the hotel the fee is often priced differently. Since a portion of the room rate is separated out, that portion is not considered for taxes. This is lost revenue for the city and state.
Resort fees are also commonly located in tourist areas where there is resort fee collusion. These are areas where every hotel decides to charge resort fees. Currently resort fees apply to all 62,000 rooms on the Las Vegas Strip. Resort fees are not found just at resorts. Many budget hotels also charge resort fees. The Days Inn in Miami Beach, the Super 8 in Las Vegas and the Hotel Pennsylvania in New York City are all two star hotels that charge resort fees.