Tourism bureau looks at boost

Powell River City Council has unanimously endorsed a request to impose a two per cent tax on hospitality industry accommodations.

At the Thursday, August 6 council meeting, councillors considered a request from Sunshine Coast Tourism to provide a letter of support to the provincial tourism ministry to allow an additional two per cent charge in hotel, motel and bed and breakfast facilities with four or more rooms.

Councillor Russell Brewer, who chairs the city’s finance committee, brought forward the recommendation that a letter be sent to the minister of jobs, tourism and skills training in support of the application by Sunshine Coast Tourism for a two per cent municipal and regional district tax for the Sunshine Coast region, and that Sunshine Coast Tourism be authorized to facilitate and administer the funds.

Brewer reminded council that the committee of the whole heard a presentation from Eagle Walz regarding this initiative on Tuesday, July 14. There had been an effort two or three years ago to establish the tax but it failed at that time.

“It’s not an additional tax that we are imposing on residents,” Brewer said. “It’s an additional tax on hotel room rates or accommodations with four or more rooms. Almost every other jurisdiction around us has this in place already. We are at a significant disadvantage.”

The tax is paid by visitors that come here and is then used for specifically for marketing the region. The estimate is that $1.25 million would be collected under this room tax during the next five years. Sunshine Coast Tourism serves as an umbrella organization for Tourism Powell River and the Lower Sunshine Coast.

“It will help us up our game significantly,” Brewer said.

The city contributes about $140,000 a year to Tourism Powell River but the money covers core, fixed costs and does not provide for significant marketing opportunities.