While proponents of a room tax for visitor accommodations say they have agreement from a sufficient number of operators representing more than half the rooms, there are opponents to the levy.
Both the City of Powell River and the Powell River Regional District have agreed to write letters of support for the Municipal Regional District Tax (MRDT). The letters will be addressed to the provincial government, supporting an application by Sunshine Coast Tourism.
Elaine Thoma and her husband Ed have operated the Seabreeze Resort near Lang Bay for the past 30 years. She believes the MRDT will have an impact on her business, which she said has a loyal customer base. Half of Seabreeze’s customers are returnees, she explained.
“If we increase our charges to cover overhead and then add another two per cent on top of the 13 per cent tax, we are going to have our regular customers maybe looking at another place for their holidays,” Thoma said.
Because the additional tax collected would be earmarked for marketing, facilities with fewer than four rooms and campsites are not facing the increase, but will benefit equivalently from marketing efforts. Thoma said for tourism funding, it makes a lot more sense sharing the collection from all tourist outlets.
“Bed and breakfasts get the full benefit of all funding but do not contribute,” she said. “There are only a few hotels and motels, and if they collect two per cent on their one-night visitors, it is not a big deal.
“With resorts, most visitors come for one or two weeks at a time and 15 per cent tax is a big ouch.”
There are a number of resorts that do not agree with the MRDT and Thoma said her customers are not for it either.
“We rent our cottages by the week, mostly for young families, struggling at the best,” she said. “We have 10 units, which is just six more than the average B and B. “Why should we make these holiday makers pay an extra two per when the rest of the tourist outlets do not have to collect it.
“Put yourself in these families positions. First, there is a ferry ride, which costs over $200; our cottage average is $1,400 for a family of four [per week] plus about $200 tax on top. That is a hefty sum when you add it all up with fuel, food etc.”
Thoma said her resort has not increased fees for a few years in order to help customers swallow the increase in ferry costs to get here.
“Now they want to add two per cent and want us to collect it,” she said. “If we are forced to collect the extra two per cent, I may have to look at the options and just rent by the month. Then there will be one less resort in Powell River to accommodate the visitors, but then they can always go to a [bed and breakfast] where visitors do not have to pay [the] tax.”
