Tax Not To Be Implemented Right Away; Requires Provincial Review and Approval
Cranbrook, BC (March 7, 2017) – At Monday’s Council meeting, approval was given to the Hotel Tax Bylaw, which will help move ahead the City’s application to the Province to create a local Destination Marketing Organization (DMO).
The newly adopted bylaw will be included in the City’s DMO application, which formally requests the Ministry of Finance to collect a 3 percent tax on behalf of the City, on all hotel and motel room stays in Cranbrook, along with all bed and breakfast establishments with four or more rooms.
This tax will not be implemented right away. It needs the approval of the Ministry of Finance in order to begin being collected. It is hoped that the hotel tax could start being collected this summer. If approved by the Province, those tax dollars will be provided to the Cranbrook and Region Tourism Society (Cranbrook Tourism), through the municipality, in order to undertake a tourism marketing campaign for the City. This initiative will have oversight and review by Council and City administration on an annual basis to ensure Cranbrook Tourism is meeting its goals and objectives while meeting the expectations of the community overall.
It is important to understand this is not a new tax on residents. This tax is to be added to room stays of visitors to Cranbrook. This additional hotel tax is only for short term accommodation stays. Those who live in some of these establishments for long term tenancy are exempt from the additional 3 percent tax. If you look around the region, Kimberley does this, Fernie does this – many municipalities do this for the same reasons the City is.
As an example, an average hotel room in the City which costs $130 per night would only have an additional $4.20 added to the per night room rate. The hotel tax is projected to collect close to $450,000 per year for tourism marketing initiatives.
The majority of hotel owners and operators in this community support this initiative and want to see improved marketing of Cranbrook to visitors and travelers. There is the desire to see more people come and explore Cranbrook and region and see what we have to offer, while using Cranbrook as their home base, staying in our hotels, eating at our restaurants and shopping in our stores.