An additional two per cent service tax for certain accommodation providers in Powell River has been on the table since 2005, when representatives from community organizations, including Tourism Powell River, first put together a proposal. After a seven-year uphill battle to convince accommodators and others in the community of its benefits, the renamed Municipal and Regional District Tax (MRDT) may have finally come to fruition.
Yet some accommodation providers are still passionately opposed to the MRDT, and for good reason. Affected by ferry fares, the economic downturn, and the distance and time it takes to travel to the community, certain sectors of the accommodation industry have been suffering recently. Many feel an extra two per cent will drive even more travellers away.
These points are legitimate, but may also explain why implementing the MRDT could be a solution. With ferries and travel time playing an unchangeable part in the city’s tourism industry, most would infer that it will continue to suffer if nothing different is done. Lower occupancy has left providers unable to put back more capital investment or advertising. Stuck in a stagnant circle of being unable to invest, with numbers falling, maybe it’s time the industry tried something new. Action in the form of the MRDT may be exactly what is needed, and with the “staycation” movement encouraging people to enjoy places closer to home, this may be the opportune time for Powell River to increase its advertising.
Though it’s hard for some to put their trust in an organization that, in the case of hotels and motels, doesn’t specifically represent their interests, Sunshine Coast Tourism has proposed an open way to distribute and spend funds. The organization has pledged to maintain accountability and transparency through using a separate bank account and releasing quarterly budget and activity reports.
If the government decides to implement it, the tax will only be in place for five years, at which point the application process will start again. This provides all involved ample time to see whether it works.
Though Powell River’s situation may be different from most in BC who have already implemented the MRDT, extra marketing supplied by tax revenues could provide the exposure our tourism industry needs to thrive.
Even in our own province, too many people have no idea where Powell River is and what it has to offer. One of the most logical ways to change this is through an increase in advertising showing how unique our community is, which the MRDT would most certainly provide.
