by Josaphine Scheifele How many of us can, in this economic climate, afford the effects of an increase of two per cent in taxes?
When a representative of Tourism Powell River canvassed businesses to support the two per cent Hotel Room Tax (HRT), he did not take into account the difficulties we face as accommodation providers in today’s economy.
Powell River, Okeover and Lund are at the upper end of the Sunshine Coast. This is our location, it cannot be changed.
To get to the hotels, resorts and bed and breakfasts, two ferries are required (or a flight) and in recent years, with the steady increase in ferry cost, just getting to Powell River and northwards is a very expensive endeavour.
The time it takes to get here takes a good part of a day, anywhere from five to eight hours depending on ferries.
These are things that we, as accommodation providers in this area, are faced with. Two of the most common reasons I have received from guests who decide not to book with us this year relates to the ferry cost and the time to get here.
Now add to that the economic climate in which we live and it is hardly surprising that very few guests from south of the border and the crisis-ridden Euro zone venture out here. In the 16 years we have been in business, we have just had our worst July, an almost 50 per cent decrease in occupancy.
Today, travellers look at every penny they spend. Now we have to deal with an additional two per cent tax which increases the final cost of the product. Many of the accommodation providers have not increased their prices in the last few years despite the rising costs.
To avoid the cost of ferries, tourists only go to places accessible directly by car.
If they visit the Sunshine Coast, many stay on the Lower Sunshine Coast. Ferry cost are only half the amount if they stay there.
The Lower Sunshine Coast has everything and more to offer in terms of accommodation than Powell River, Lund and Okeover. In the last couple of years two well-known resorts have established themselves (The Painted Boat and Rockwater Secret Cove).
We as accommodation providers are facing an uphill battle to get travellers to stay with us. Less revenue each year puts a stop to capital investments and now Tourism Powell River, together with Sunshine Coast Tourism, have decided that it is a wise move to increase rates for accommodation through the two per cent HRT. If Tourism Powell River would open its eyes, it will see there is hardly any major capital investment among the hotels and resorts in Powell River. For us, the last time a major capital investment was done was in 2007.
What does the two per cent additional tax achieve other than making the accommodation providers here, that collect it, be at a competitive disadvantage to providers on the Lower Sunshine Coast?
In its effort to get funding through this tax, Tourism Powell River has not taken any notice of the challenges we face as accommodation providers.
Josaphine Scheifele is co-owner of Desolation Resort.
