A regional tourism organization hopes to gain enough support for a tax initiative to implement it by the fall.
Celia Robbin, president of Sunshine Coast Tourism (SCT), made presentations to both City of Powell River and Powell River Regional District committees-of-the-whole recently. SCT plans to apply to the provincial ministry of finance for the two per cent municipal and regional district tax, which would be charged on sales of taxable accommodation in the Sunshine Coast and Powell River regional districts.
SCT is the destination marketing organization for the region, which encompasses Desolation Sound to Howe Sound and all of the communities in between. It works closely with other organizations, including Tourism Powell River, Robbin explained. “Our job is to bring visitors here in the first place, to put out information and to raise the profile of the Sunshine Coast and what people think of it as a place to come and visit,” she said.
SCT has 350 members throughout the coast, which is split about 50-50 between the Upper and Lower Sunshine Coast. It has been in place for five years and has an annual budget of $125,000 in cash and $50,000 in in-kind services.
All four local governments on the Lower Sunshine Coast contribute cash to the budget. The City of Powell River contributes in-kind services.
As well, SCT has successfully applied for grants through the provincial Community Tourism Opportunities Fund, Robbin said.
The organization would like to add a third leg to the funding model and bring in the consumer. “We’re not asking for anything new here,” she said. “We’re simply trying to join in to the other 50 communities in British Columbia who already have a known, stable funding source that funds their communities’ tourism operations.”
Accommodation providers that have four or more rooms would be collecting the tax. The organization needs both a majority vote of the number of accommodation providers and a majority of the room count. As well, SCT needs letters of support from each of the local governments in the region to go along with the application.
If the proposal is successful, accommodation providers who collect the tax would no longer pay SCT annual membership fees.
The organization estimates the tax will generate a further $255,000 annually for the development and promotion of tourism. It would administer the funds, using an 80-20 funding formula, with 80 per cent being retained by SCT for regional initiatives and 20 per cent being directed to localized projects. Allocation of the local funds will be made through an application process.
Both Mayor Dave Formosa and Councillor Chris McNaughton had a number of questions and concerns about the proposal. Formosa said any Sunshine Coast branding needs to include a specific reference to Powell River with marketing focusing on attracting Vancouver Island residents.
McNaughton questioned the 80-20 funding formula. “Powell River’s tourism has remained flat, while you’ve seen exponential growth on the south coast,” he said. “If the trend continues, the Lower Sunshine Coast, given its strategic location, and the benefit of this regional marketing, will realize immediate results. I think where the energy needs to go is into the Powell River region.”
