Levy supports increase in tourism budget

Powell River Regional District is supportive of a visitors’ tax to assist promoting tourism in the region.

The matter came to the regional district’s Thursday, July 16 committee of the whole meeting in a letter requesting the regional board support a two per cent tax on hotel rooms and similar accommodation. The assessment is known as the Municipal Regional District Tax (MRDT). It is in place in a number of BC communities.

Colin Palmer, committee chair and Electoral Area C director, said the request, which came from Sunshine Coast Tourism, which represents the north and south regions of the Sunshine Coast, including the Powell River region, Palmer said.

“We have, in the past, provided a letter of support for this, Palmer said. “It failed before.

“It’s a bit misleading because it’s called a regional district tax. It’s a tax in the region by the tourism people, not a regional board tax.” The provincial government, however, requires regional districts provide a letter of support, he added.

Sandy McCormick, Electoral Area D director, asked if Tourism Powell River was part of Sunshine Coast Tourism. She was advised that it is. Russell Brewer, City of Powell River regional board director, said Tourism Powell River was involved in the process of trying to establish the MRDT assessment on rooms.

“They have a memorandum of understanding with Sunshine Coast Tourism.”

Brewer said the tourism organization has met the requirements of having approval and signatures from a majority of the accommodation sector, both by number of properties and by number of rooms, to approve the additional consumer paid tax.

“It’s been a long process of engagement with the accommodators,” he said. “They have a business plan in place. It would mean roughly $250,000 per year for the upper and lower Sunshine Coast for marketing the region.”

Brewer said the tax would apply to accommodations that have four rooms or more. A number of bed and breakfast accommodations would not collect the tax.

The matter was referred to the regional board, where it was carried unanimously. The regional board has agreed to write a letter of support.

According to Sunshine Coast Tourism, after careful consideration by its board, it was approved unanimously that to be competitive in the marketplace attracting visitors to the Sunshine Coast, the marketing budget needed to be increased. The best option for sustainable funding would be the MRDT.

The provincial government requires the program be implemented for a five-year period. If approved, all stakeholders would review the program at the end of this period and the region could decide whether to continue with a renewal application. The accommodation sector must once again show its support.

Other communities currently participating in the program include: Courtenay, Mount Washington, Parksville, Qualicum Beach, Nanaimo, North Vancouver Island, Squamish, Whistler, North Vancouver, Vancouver, Richmond, Surrey, Victoria, Tofino, Ucluelet, Langley, Abbotsford and Chilliwack, as well as most communities in the Okanagan.