A Niagara-on-the-Lake councillor tried to resurrect the idea of a destination marketing tax on tourists staying at hotels in the town, but he failed to get any support Monday.
Coun. Paolo Miele brought back a bylaw that came before council in January and was shelved following opposition from the chamber of commerce and tourism accommodation operators.
Provincial legislation allows municipalities to collect an accommodation tax shared with a non-profit agency to be used for tourism-related expenses and marketing. Miele suggested that a $4 a night tax be levied on hotel stays as a two-year pilot project.
He said an accommodation tax that was enacted in 2010 with six participating hotels resulted in revenues of $45,000 a month. Miele said the additional tax did not affect the hotels’ ability to operate and he pointed out that the City of Niagara Falls has collected these fees.
Janice Thomson, president of the chamber of commerce, disagreed with Miele about a new tax on the hotel industry. She said that based on feedback from chamber members and the impact of Bill 148 which increased the minimum wage, “it is not appropriate to burden visitors with additional taxes.”
Carlo Robazza, a representative of CFO Lais Hotel Properties, said the tax could result in vacancies at hotels and layoffs of staff. He also questioned the logic of taxing tourists who stay overnight as opposed to day trippers to help pay for infrastructure in the town. He pointed out that those who come for the day don’t have as much time to spend money at shops, restaurants and other businesses as visitors who stay longer.
John Crescenzi, general manager of the Holiday Inn Express, said neither the guests nor the hotels are in favour of the tax.
Coun. Betty Disero said she thinks it is premature to go ahead with an accommodation tax before further consultation with hotel owners and without an understanding of the administration costs and the impact on jobs. Coun. Jamie King said he thought council had had a really good discussion in January about the issue.
Realizing he had no support at the council table for the bylaw, Miele withdrew his motion but suggested that further dialogue take place between the town and the hotel industry.
