The Additional Hotel Room Tax works, the B.C. government likes it and more municipalities will be implementing it, provincial minister Kevin Krueger told the Northern B.C. Tourism Association's annual general meeting Monday in Prince George.
Krueger's defence of the tax came after Premier Gordon Campbell announced at the Union of B.C. Municipalities that the program would continue past June 30, 2011. The two-per-cent levy, which the City of Prince George put in place last year, joining 50 other municipalities in the province, is added to the bills of visitors who stay in hotels and motels. It was expected, when it came into effect in January, to raise nearly $500,000 in Prince George alone for promoting the city as a tourism destination.
"That will be funding tourism marketing in the northern regions for many years to come," said Krueger, whose remarks were met by applause from delegates at the Coast Hotel.
He said the tax raised $27 million for tourism promotion in B.C.
Critics of the tax in Prince George at the time said it would unfairly target corporate travellers to the region and those coming in for medical appointments.
"We feel the wrong people would be slapped with the tax," said Elke Hierl-Steinbauer, manager of the Bon Voyage Motor Inn.
However, the measure, which needed approval from at least half of hotel and motel representatives who held at least half of the rooms in the city, passed with 57 per cent backing that represented 67 per cent of the rooms in the city. But last January, the UBCM sent a letter to Krueger saying it could not support the tax because it was concerned new provincial guidelines could affect the ability of local governments to direct where the money raised should go and a lack of consultation on changes to laws governing local government's role in tourism marketing.
"There appears to be an intent ... to replace local governments in local tourism marketing delivery as well as to create foundational guidelines that place a higher value on provincial and regional marketing objectives than local objectives," reads the letter.
Krueger said the government tapped a veteran civil servant to conduct two sets of consultations on the tax, which were completed at the end of 2009
He acknowledged there were concerns on the part of the hotel industry over "inefficencies" in the program but said he had heard no complaints about the recently introduced Prince George tax.
"Proposals for a stronger improved accountability framework are continuing to emerge through the current stakeholder consultation," said Krueger. "We want to ensure more direct and transparent accountability to taxpayers for AHRT spending."
He said the $27 million raised by the tax made up part of the $82 million allotted to six tourism regions in the province for promotion.
Krueger also reiterated a renewed commitment to funding regional programs across the province, saying it was part of the government's goal to double tourism in B.C. by 2015.
"I have no doubt we are going to do it," said Krueger. "In fact my secret goal is beyond doubling.
"You can expect more resources."
