It looks like it’s going to cost tourists a little more to stay in Kelowna Hotels next summer.
Tourism Kelowna is pushing ahead with a plan to get the hotel tax raised from two per cent to three per cent.
The organization uses the fee to market the city as a world class vacation destination.
The increase in the hotel tax will only add a few dollars to the bottom line of most hotel bills, but Tourism Kelowna believes the dividends for the tourism agency will be substantial.
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“It will bring in an additional $900,000 when fully implemented,” Nancy Cameron, the president and CEO of Tourism Kelowna said. “This money will be used as a growth strategy.”
City council has endorsed the one per cent hotel tax increase and the application has been forwarded to the province for approval.
Tourism Kelowna expects the tax increase should be in place by the spring of 2017.
“It’s a terrific way to raise marketing funds. It’s a user pay system so it’s not on the backs of our residents,” Cameron said.
Tourism Kelowna found a majority of accommodations, which represent nearly 85 per cent of all rooms, were in favour of increasing the tax.
“But some people think that one per cent will turn people away from coming at all,” Heather Schroeter, general manager of Manteo Resort said. “That’s the opposition I’ve seen. It’s a small margin, but it’s out there.”
Schroeter said she doesn’t expect any push-back from her clients, adding that other jurisdictions already charge a three per cent or higher hotel tax.
“Taxes are taxes,” Schroeter said. “Fortunately most people just expect to pay them and come and enjoy themselves.”
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