Tourism marketing for the Sunshine Coast and Powell River will be getting a big boost from a new hospitality tax, but that has some frustrated tourism-accommodation providers crying foul.
On May 2, the BC government approved a two per cent municipal and regional district tax (MRDT) for tourism accommodations on the upper and lower Sunshine Coast.
“We’re being forced to collect it,” said Elaine Thoma, owner of Seabreeze Resort, who recently announced that Sunshine Coast Accommodation Association, an organization formed to oppose the tax when it was proposed, will be folding.
All hotels, motels, resorts and inns that currently collect the eight per cent provincial sales tax will be required to collect the MRDT, but those with less than four rooms will be exempt.
“There’s lots of bed and breakfasts that do not have to collect this,” said Thoma. “It’s very unfair. There are a whole bunch of tourism providers that do not have to collect it, but they are the ones pushing for it.”
Proponents of the hotel tax maintain the Sunshine Coast is not on the radar of most people coming to BC for vacations, and the extra funds will be helpful in marketing the area.
Celia Robben, president of Sunshine Coast Tourism (SCT), said the added marketing would increase the number of people coming to the area who may have previously been unaware of the Sunshine Coast. The levy is expected to bring in $250,000 per year and give SCT the ability to apply for matching funds from Destination BC. Robben said Tofino currently spends close to $1 million on marketing per year.
The tax will add $3 to the cost of a $150 room, which will add up for tourists staying for longer periods of time, according to Thoma.
“People coming in for one or two nights, that extra two per cent is not a big deal,” said Thoma, “but the people coming to our place are coming for a week.”
Seabreeze has 10 units and a campground. Thoma said she fears that the added cost will only make it more difficult for tourists to choose to come to Powell River for extended holidays.
Tourism Powell River executive director and SCT marketing coordinator Paul Kamon said the tax will provide a much-needed boost in stable funding for five years.
“This cooperative marketing fund collected from consumers will allow us to effectively promote and develop our region for increased tourism in a very competitive marketplace,” said Kamon.
So much depends on increasing the number of repeat visitors to Powell River, said City of Powell River councillor Russell Brewer.
“Powell River and the Sunshine Coast have been doing a really good job marketing on a shoestring budget,” said Brewer. “We’re fortunate to have Tourism Powell River doing some marketing in partnership with SCT, but also what has helped is some of the initiatives out of city hall and its resident-attraction campaign.”
Brewer said he attributes much of the success Powell River has had recently to the increase in those who are discovering Powell River through summer arts, culture and sporting events, such as the BC Bike Race, PRISMA and Kathaumixw.
“These have been hugely significant,” he said. “The MRDT will help share our story even wider.”
Robben added the program will help Powell River compete on a level playing field with neighbouring regions of Vancouver Island, Sea to Sky, and the Okanagan, where the program is already in place.
From Langdale to Lund, 50 accommodation providers will be required to collect the MRDT on accommodation starting August 1.
Thoma said the move will make it more difficult for Powell River operators to stay in business, and some have already sold their businesses.
