A majority of the city's hotels and motels have voted in favour of raising the tax imposed on visitors to pay for tourism promotion in the city to three per cent.
In all two-thirds of them representing 74 per cent of the rooms in Prince George were in support, city council was told Monday night. The threshold was 51 per cent on both counts.
The rate currently stands at two per cent of the rate charged per night for a room. Three per cent is the maximum now allowed under provincial legislation.
To come into effect in July 2017, the hike would boost Tourism Prince George's budget by $400,000 per year and in all, the agency is expected to collect $1.1 million per year from the tax, accounting for slightly more than 70 per cent of the agency's $1.5-million budget.
Tourism Prince George has a five-year plan ready to put into play once the tax comes into effect. Its goal is to increase visits to the city by 40 per cent, as measured by growth in revenue from the tax, and puts an emphasis on sport tourism and meetings and conventions to the tune of $280,000 to meet the objective.
It also sets aside $30,000 for "product experience enhancement and training" for festivals. And $55,000 is earmarked for placing 10 new or enhanced digital kiosks around the city.
Tourism Prince George won't reap all of the benefit. The provincial government will take 0.2 per cent to go into its own sport tourism program. The city contributes a further $327,000 to Tourism Prince George and is prohibited by provincial legislation from decreasing the amount in response to the added revenue from the tax.
Coun. Brian Skakun suggested a process be established where groups seeking grants and other financial support for sporting and cultural events in the city go straight to Tourism Prince George for help rather than to city council.
With the outcome in hand, council passed a bylaw in support of raising the tax through three readings. Once finally passed, it will be sent on to the provincial government for final approval.
