By Richard Rolke - Vernon Morning Star Published: October 24, 2008
Hotels and motels could soon be charging guests an extra tax to bolster Vernon’s tourism marketing. A committee of accommodation representatives is recommending to city council Monday that a two per cent hotel room tax be created by February 2009. “This is so long overdue,” said Coun. Barry Beardsell, who believes such a levy will help Vernon compete with other communities when it comes to trying to lure tourists. “We just aren’t getting the tourists coming here.” Hotel taxes have been proposed before, but they failed because of a lack of majority support among businesses. This time around, there appears to be sufficient support for the concept. Twenty-one properties were surveyed and 57.14 per cent supported a tax, while of the 1,178 rooms in Vernon, 68.34 per cent backed the plan. Required approval was 51 per cent of rooms and 51 per cent of properties.“For those hotel/motel partners that have declined to support the initiative, we would like to ensure that all discussions relating to the tax remain transparent and open to all accommodation property owners, and we will continue to welcome all input and suggestions,” said Margaret Penner, committee member, in a letter to council.
If the hotel tax proceeds, it would only apply to businesses within Vernon and not those in Coldstream or the two adjacent electoral areas. And that is a concern for Beardsell. “How do you leave Silver Star out of it?” he said. Currently, tourism marketing is handled through the North Okanagan Regional District’s Greater Vernon Advisory Committee. But the city is currently in the process of establishing its own economic development/tourism service. The hotel tax would be administered by the city and a stakeholders group would make recommendations on how the money is spent. “I support it as long as the funds are managed properly,” said Mayor Wayne Lippert. Lippert is convinced a hotel tax could bolster Vernon’s ability to market itself as a destination. “Look at communities like Kelowna where it has been a big funding source for tourism and it works in Penticton as well.” In terms of a two per cent tax deterring tourists from staying overnight in Vernon, Lippert doesn’t believe that concern is valid.“You don’t even notice it,” he said of the times he’s had to pay a room tax in other communities.
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As soon as the word tax comes up you can almost hear the roaring moans and groans. Nobody likes them and nobody wants them. But when you sit down and figure it out, we would be nowhere without taxes. They support schools, repair roads, construct hospitals, the list goes on. Now what would be even better than a tax that benefits the local economy, yet the locals don't even have to pay it? That's just what Vernon has been avoiding for years while our neighbouring communities – Kamloops, Kelowna, Penticton – have jumped on board with it. But another chance is coming for Vernon to pick up on what the others are cashing in on – the hotel tax. The two per cent tax would be added onto room rates, therefore the tourists and visitors would be paying it. That extra two per cent would then be put back into Vernon tourism. That allows the city to market itself to potential visitors. You know, like how the province uses that catch phrase "British Columbia, the best place on earth." Our neighbouring communities have been using their extra tourism dollars to do the same, just in different ways. Now it could be argued that if room rates rise, tourists will just drive on through to the next city. But if our prices are the same as Kelowna and Kamloops, why would they keep on driving? But if Vernon does decide to hop on board the tax train, it needs to consider Silver Star as well.Somehow, the world-class resort should be getting in on this deal, because ultimately the resort and the city can help each other boost tourism numbers.
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