By Cheryl Jahn

Tourism Prince George Concerned Over Hotel Tax

Jun 19, 2018 | 1:58 PM

PRINCE GEORGE – The Municipal and Regional District Tax, more commonly called the Hotel Tax, has been in place since September 2015. Hotels charge an additional fee per room to pay for marketing initiatives in an individual region. Last year, local hotels voted in favour of increasing the hotel tax from two percent to three percent. This year, the Hotel Tax will generate $1.1 million for Tourism Prince George.

“We use it for tourism in terms sports, in terms of meetings and conventions, in terms of leisure travel,” says Erica Hummel, CEO of Tourism Prince George. “We don’t just do marketing either. We do projects to increase the experience, make the experience better for [the tourists].”

But a paragraph in the latest provincial budget has thrown the tourism sector into panic mode. It reads: “Effective on a date to be specified by regulation, revenue from the municipal and regional district tax collected by municipalities, regional districts and eligible entities, such as tourism-focused non-profits, can be used to fund affordable housing initiatives. Currently, funds can only be used for tourism marketing, programs and projects.”

“We don’t disagree as an industry that affordable housing is an issue that needs to be solved,” says Hummel. “Just not on the backs of tourists spending time in our communities and spending an extra night here. They pay an extra tax on the hotels. It’s supposed to go to marketing programs and projects that promote our community, not pay for affordable housing.”

Hotels must vote in favour of the Hotel Tax. Last year, local hotels agreed to a five-year term for the three percent tax. The MLA for Prince George-Valemount, and the former Tourism Minister says it is a highly competitive industry and BC is up against some very formidable marketing from Washington and Alberta.

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“This money is intended to support the tourism sector. I think hotels will react to that in the longer term by saying ‘No thank you [to the Hotel Tax]. We’re not in the business of funding affordable housing.’,” says Bond. 

Tourism Prince George’s marketing budget for this year is $1.6 million, nearly $500,000 more than the Hotel Tax brings in.