Published Articles

Stable Funding for Tourism an Urgent Need (in Business Examiner)

Marketing our tourism assets is a key to economic prosperity. In order to do so, stable destination marketing funds are extremely important. Currently, those funds come from what is called the Additional Hotel Room Tax (AHRT), and are allocated specifically for tourism marketing. Under the Harmonized Sales Tax, the AHRT will be retired, and with it, the stable source of marketing dollars the industry has relied upon.

This immediate challenge was quickly addressed by the provincial government by extending the AHRT for one year after HST implementation to provide stable funding through a transition time. That mitigation effort settled immediate industry concerns and has allowed time for stakeholders to work together with industry to establish a new approach.

The task is to determine a model of locally controlled, industry-led marketing, funded through a predictable and sustainable funding model, And while the AHRT is in place until July 1, 2011, it is important that the new funding model be determined as soon as the marketing cycle in the tourism industry is one with a long horizon. Instability would not be good for the industry, and therefore not good for business in general.

While there are a number of issues that government must deal with in the coming months, we submit that a stable tourism funding plan, articulated early, is an urgent matter for the health of the provincial industry. Having a determined funding plan worked out in the weeks ahead will allow the industry the latitude to make marketing plans to capitalize on the 2010 Olympics.

A new funding plan for destination marketing is likely to require a legislative change. The time line for those changes elevates the importance of this matter in the short term. If the industry is to reach the goals of doubling tourism revenues by 2015 it cannot be hampered by concerns over uncertainly of funding as it makes its 2011 and beyond marketing plans – which for many organizations, are already in the works.

Whatever formula is worked out, funding needs to be locally controlled within marketing regions that benefit the entire province. Funding needs to be maintained to provincial conference centres as they contribute significantly to the success of our tourism locations and the general business vitality of communities.

We encourage government to approach this issue with the sense of urgency felt by the professional in tourism all across the province.

Articles - 2010

Articles - 2009