Another Carrot Dangled to Get Hotels to Approve Hotel Tax
By 250 News
Friday, October 24, 2008 04:11 AM
Prince George, B.C. - One of the points on the Premier’s 10 point plan to shore up the B.C. economy could have a real benefit in Prince George. The item would see a doubling of the commission paid to the businesses which collect the provincial sales tax and the hotel tax.
Initiatives Prince George has been trying to develop a 2% hotel tax that would raise money for a District Marketing Organization. It is expected such a tax could pump as much as half a million dollars into an organization that would promote Prince George in a manner similar to the way communities such as Kamloops or Kelowna try to get northerners to visit their respective regions.
Initiatives Prince George CEO Tim McEwan says the tax can only be implemented if there is support from the majority of the hotels and motels, as well as the majority of hotel rooms. McEwan says the doubling of the commission could help “Certainly anything that would be an added incentive would be positive” says McEwan.
According to McEwan, the opposition to the tax seems to be based on two ideas, that the city should provide it, (funding for a marketing organization) and that some hotels don’t think they need it or would benefit by it. McEwan says the tax isn’t about the needs of individual hotels, “This is about all of us working together for the betterment of Tourism P.G. which is good for all of us.”
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I think forcing taxation on unwilling parties for marketing efforts is wrong. If the community as a whole needs to be marketed then we have existing programs available funded by the province and the city. This proposal is just an exercise in empire building IMO.