For the first time in five years, the council is proposing to increase fees for businesses that are promoted at Daylesford Regional Visitor Information Centre.

Holcombe Ward Councillor Bill McClenaghan said the visitor information centre was failing in its duty to refer visitors to appropriate accommodation.

"I have been contacted by tourism operators who have said they had not had one single referral.

"I don't think they are going to be very happy with a fee increase," Cr McClenaghan said.

The current fee structure has three levels. The basic cost of $110 per year includes a brochure display and a website listing. The intermediate cost of $132 includes extra display space. The premium level, at $198, provides a link from www.visitdaylesford.com.

Cr McClenaghan said businesses shouldn't be paying for a service that was not working for them.

"I will be against increasing fees. There's not just a need for the service to improve, it has to exist in the first place," he said.

"The whole thing needs a jolly good shake up."

The council profits between $30,000 and $40,000 annually from the fees.

Mayor Tim Hayes also acknowledged the information centre needed to improve its visitor referral system.

"Over the years there has always been issues at the visitor centre. There are times when things haven't operated as they should," Cr Hayes said.

He said he had heard of cases of accommodation business operators going under-cover to inspect the integrity of staff at the centre.

"People have gone in (to the visitor centre) under the guise of a visitor and what they were really doing was checking up on the service their business was receiving," he said.