The province has approved a hotel room tax within the city of Nanaimo.The two-per cent tax will be used to assist, develop and market festivals and sporting events. Such events attract overnight visitors.
Under provincial law, a room tax can only be implemented with support of a majority of accommodation operators representing a majority of rooms in that market.
The City of Nanaimo first approached hoteliers about a room tax more than a decade ago. The major hoteliers always insisted on getting a say how the tax money would be spent.
An agreement was recently reached between the city and tourism operators, through the Nanaimo Economic Development Corporation, which now operates Tourism Nanaimo. The agreement means money collected will be earmarked for festivals and promotion. Provincial approval was announced Thursday.
"We're very happy it's been approved," said Sasha Angus, NEDC CEO. "It's something we think will provide a pretty broad benefit to the industry.""Today's announcement is good news for Nanaimo," said Mayor Bill McKay in a statement. "Our community gains access to an additional source of revenue to promote tourism and sport."
The tax is expected to generate up to $400,000 in its first year.
"The accommodation operators in Nanaimo strongly believe that we must give people a reason to stop and visit," said Dan Brady, who manages the Harbourside Howard Johnson, and Nanaimo Hospitality Association chairman. "We must increase overnight stays."
The tax takes effect April 1.
