Nov 26 EDITORIAL http://www.vernonmorningstar.com/
Obviously no one likes paying taxes, but there are times when it is not only necessary but beneficial. And that appears to be the case with the renewed discussions about a proposed hotel room tax to support tourism marketing in Greater Vernon.
At the same time that the Greater Vernon Services Commission is spending $81,000 a year on tourism marketing, Penticton - a similar-sized community - is forking out about $1 million. The reason for the discrepancy is that upwards of 90 per cent of Penticton's marketing fund comes from a hotel room tax. Similar situations also occur in Kelowna, Kamloops, Merritt and other cities where a tax exists. In fact, because of the growing presence of this levy, Vernon hotel and motel owners can't say such a tax will force guests away. If anything, it is a lack of a tax that is making the local accommodations sector and all of Greater Vernon not competitive. Because no extensive advertising campaign exists, prospective visitors know very little about Greater Vernon, but they do about Penticton and Kelowna. Some hotel owners have protested in the past that they shouldn't be financially on the hook for marketing when other tourism-related businesses will benefit. That is fair comment, but it is hard to determine how many customers to a restaurant or gas station are tourists. At a motel, virtually all of them are. Tourism is an extremely competitive market and Greater Vernon simply isn't keeping up. Times have changed and we can't just depend on word of mouth to promote our great area. New methods must be considered including a room tax.
Obviously no one likes paying taxes, but there are times when it is not only necessary but beneficial. And that appears to be the case with the renewed discussions about a proposed hotel room tax to support tourism marketing in Greater Vernon.
At the same time that the Greater Vernon Services Commission is spending $81,000 a year on tourism marketing, Penticton - a similar-sized community - is forking out about $1 million. The reason for the discrepancy is that upwards of 90 per cent of Penticton's marketing fund comes from a hotel room tax. Similar situations also occur in Kelowna, Kamloops, Merritt and other cities where a tax exists. In fact, because of the growing presence of this levy, Vernon hotel and motel owners can't say such a tax will force guests away. If anything, it is a lack of a tax that is making the local accommodations sector and all of Greater Vernon not competitive. Because no extensive advertising campaign exists, prospective visitors know very little about Greater Vernon, but they do about Penticton and Kelowna. Some hotel owners have protested in the past that they shouldn't be financially on the hook for marketing when other tourism-related businesses will benefit. That is fair comment, but it is hard to determine how many customers to a restaurant or gas station are tourists. At a motel, virtually all of them are. Tourism is an extremely competitive market and Greater Vernon simply isn't keeping up. Times have changed and we can't just depend on word of mouth to promote our great area. New methods must be considered including a room tax. ******************************
Marketing tax draws debate
By RICHARD ROLKE Morning Star StaffNov 26 2006
Adding a marketing tax to each hotel room booked by a visitor is generating considerable debate. Some hotel operators believe a specific room tax may be the
only way to bolster tourism-related initiatives such as marketing. "It would definitely help Vernon out, especially when Kelowna and Kamloops have the tax," said John LeBleu, general manager of the Prestige Inn. Hotel and motel owners have shot down a room tax in past, but the issue arose two weeks ago when the Greater Vernon Services Commission board learned that while it puts $81,000 a year into marketing, Penticton spends $1.1 million and Kelowna $2.1 million. Upwards of 90 per cent of Penticton's fund comes from a room tax. In 2005, it was suggested that a two per cent room tax would generate upwards of $300,000 a year for marketing. On Monday, city council will receive a letter from the Greater Vernon Chamber of Commerce, urging that a consultant be hired to review the tax issue and pursue it with local motels and hotels. "We want to see more marketing dollars in the community," said Bob Sattler, chamber president. "We're falling behind other communities. They're putting hundreds of thousands of dollars into marketing." The chamber has led previous attempts to have a room tax initiated, but Sattler believes now is the time for the GVSC to hire a consultant. "There needs to be someone to research it and inform people of the hotel tax." At the Best Western Vernon Lodge, general manager Heeson Domay agrees the tax must be considered again. "Our competitor regions have implemented the tax," she said. However, she points out that local hotel and motel owners control the fate of the issue. "All of the different factions can discuss it but it needs to be approved by 51 per cent of the hoteliers and moteliers." LeBleu maintains that it's still unfair to saddle only hotels and motels with funding community marketing when other tourism-related businesses will benefit. "That will still be a concern but we as a group need open eyes on this." Wayne Lippert, Vernon mayor and GVSC director, is willing to investigate the matter. "Other communities appear to be benefitting from a tax so we need to see what those benefits are," he said. "It's great to collect money and spend it but we need some kind of measure first."
Adding a marketing tax to each hotel room booked by a visitor is generating considerable debate. Some hotel operators believe a specific room tax may be the
only way to bolster tourism-related initiatives such as marketing. "It would definitely help Vernon out, especially when Kelowna and Kamloops have the tax," said John LeBleu, general manager of the Prestige Inn. Hotel and motel owners have shot down a room tax in past, but the issue arose two weeks ago when the Greater Vernon Services Commission board learned that while it puts $81,000 a year into marketing, Penticton spends $1.1 million and Kelowna $2.1 million. Upwards of 90 per cent of Penticton's fund comes from a room tax. In 2005, it was suggested that a two per cent room tax would generate upwards of $300,000 a year for marketing. On Monday, city council will receive a letter from the Greater Vernon Chamber of Commerce, urging that a consultant be hired to review the tax issue and pursue it with local motels and hotels. "We want to see more marketing dollars in the community," said Bob Sattler, chamber president. "We're falling behind other communities. They're putting hundreds of thousands of dollars into marketing." The chamber has led previous attempts to have a room tax initiated, but Sattler believes now is the time for the GVSC to hire a consultant. "There needs to be someone to research it and inform people of the hotel tax." At the Best Western Vernon Lodge, general manager Heeson Domay agrees the tax must be considered again. "Our competitor regions have implemented the tax," she said. However, she points out that local hotel and motel owners control the fate of the issue. "All of the different factions can discuss it but it needs to be approved by 51 per cent of the hoteliers and moteliers." LeBleu maintains that it's still unfair to saddle only hotels and motels with funding community marketing when other tourism-related businesses will benefit. "That will still be a concern but we as a group need open eyes on this." Wayne Lippert, Vernon mayor and GVSC director, is willing to investigate the matter. "Other communities appear to be benefitting from a tax so we need to see what those benefits are," he said. "It's great to collect money and spend it but we need some kind of measure first." 
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