Local means within the area where the hotel is located. If you're calling a number in the same city or to a neighboring city, it's probably a local call. Domestic means within the same country where the hotel is located. If you're calling another state or a distant part of the same state, it's a domestic call.

I would clarify with the hotel so that you don't get dinged with a high bill. I have seen some considered local within any area code in the county, and others that consider only the same area code local,or within a certain distance. It's an easy way for them to make more money, so I would ask to make sure.