Economic Task Force Report-Hotel Tax

One of the recommendations coming out of the task force report to finance some of its suggestions is a tourism levy on hotel rooms.

Most people including myself, because we do not pay attention to the list of charges that are added on to your hotel room bills one after another. Do not realize that we already pay a Tourism levy of 4%, which is collected by the Alberta Government and then distributed, to Travel Alberta to market tourism in the province.

There are many towns, such as Calgary, Edmonton, Vancouver, Banff and Canmore that have put in place a “Marketing Destination Fund”. This is an additional surcharge added to your room bill that that is used to market and promote that area.

In theory, it is a good idea and could be very effective as a revenue raiser under the right circumstances.

The other side:

• It’s another tax, anywhere from 1-3% is being charged

• Who collects and administrates the funds at what cost

• It’s voluntary so will all hotels collect it (Canmore Hotel and Lodging Association, states on its web site despite being in place for at least four years only 19% of the hotels in Canmore/Kananaskis charge the fee)

• What about the 4% we already pay that his intended to promote tourism, maybe our local and provincial politicians need to chase that source of funding.

• Most hotels charge it prior to the present tourism levy and GST, so the client now pays an additional 9% on the marketing destination charge.

• Will it apply to bed and breakfast accommodation?

• If the communities around you are not doing a similar process does it not become a deterrent, a significant number of our present hotel stays are crews working in the area that will spend tens of thousands of dollars at a time. An extra 2% on a $20,000 tab is $400 why not stay in Pincher and save those dollars some company’s will.

Any way I am sure, when council looks at this there will be some very spirited debate, it will also be interesting to see the reaction of our local hotels/motels.

Crowsnest Council Meeting Nov 9th, 2010 (G+P)

Tuesday November 9, 2010 Governance and Priorities Committee Meeting

Please keep in mind this is the G+P meeting so even though much debate takes place the issues dealt with at these meeting here will be moved forward as recommendations to the Council meeting

Adoption of Agenda
Motion to accept carried unanimously.

Delegations-None

Topics for Discussions

1. Waiver of Arena Ice Fees-This was minor hockey’s request to waive ice fees for the provincial pee wee tournament in late March, if successfully awarded to the Pass the fees will be waived for that weekend (approx $2800) and Minor Hockey in return will donate to the cost of netting for the Complex ($ amount not presented). Passed Unanimously Recommend to Council
2. Advertising Review-Debate took place on better communicating with the public, the cost of doing business, etc etc. Decision was made to go back to advertising in both papers, and for administration to come back with a policy that covers all communications with various types of media. Passed Unanimously Recommend to Council
3. Dates for Orientation with Administration November 30, and Facility Tour Dec 1st.
4. Travel Alberta Open House-Council decided to have Councilor Gallant attend. Passed Unanimously Recommend to Council
5. Ball Soccer Complex Request-Administration brought forth a bill due for the ball soccer Complex in Frank, owned to Drain Brothers since 2007/08. (Why it was not brought up with council previously I do not know, maybe I missed that meeting.) Administration recommended that it be paid with $10,000 from the Ball Complex budget and $15,000 from reserves. Councilor Mitchell suggested that the $15,000 come out of next years budget. Passed by a vote of 6-1 (Saje opposed)
6. Tour Date with Spray Lakes. Determined it would take place Dec 17. Passed Unanimously Recommend to Council
7. Economic Task Force Initiative-withdrew by the Mayor not ready at this point still working on putting together
8. Waiving of Off site Levy for the Food Bank-Food Bank requested Council waive the off site levy ($7800) for their new building on 19th avenue. Council debated the merits of waiving 50% versus 100%, additionally there was concern raised about the standard of the building. The position was taken that 100% of the Off site Levy would be waived this passed by 5-2 (Saindon and Londsbury opposed)
9. Note-This item was added with direction from administration that this should have been added at the start of the meeting. Cancellation of the November 23, 2010 G + P meeting. Passed by a vote of 6-1 (Saje opposed)
   
   At this point Council adjourned to go into Camera.