A non-profit organization focused on destination marketing of the Sunshine Coast is paving the way for a hotel room tax in the region.
Celia Robben, president of Sunshine Coast Tourism, outlined the process at City of Powell River and Powell River Regional District committee-of-the-whole meetings on August 18. The organization has begun the process of applying to the provincial government to implement the two per cent municipal and regional district tax, formerly called the additional hotel room tax, in the region.
SCT, formed in 2007 as a non-profit society, represents tourism businesses from Desolation Sound to Howe Sound and its focus is destination marketing. Half of its funding comes from its membership base. It has over 350 members that come from all aspects of the tourism market, including accommodation businesses, restaurants, tour operators, retail owners and arts and culture organizations. The other half of its funding comes from a combination of contributions from local governments and the province.
All four of the local governments on the lower Sunshine Coast contribute to its budget. Currently Powell River contributes through the work of Darren Robinson, Tourism Powell River executive director. “He really has been a true part of pulling together our brand,” Robben said
SCT would like to expand its funding base, Robben explained, by bringing in the municipal and regional district tax, This allows all accommodation providers with four rooms or more to charge two per cent on top of the HST. That money goes to the province, then back to SCT, which is proposing to use it for marketing and a percentage for projects, such as signage.
SCT has scheduled information sessions next week for local government officials and tourism operators to learn more about the tax.
On Friday, August 26, BC Elections announced the result of the HST referendum. A majority of BC residents voted to eliminate the HST. The provincial government has indicated it believes it will take 18 months to return to a combination of the GST and PST.
Robben said nothing is likely to happen to the tax structure for at least a year.
Before the HST was brought in, accommodation providers charged an eight per cent provincial hotel tax and five per cent GST.
