Monday, February 27, 2012

Penticton’s hoteliers blast the City

SCOTT TRUDEAU/Penticton Herald 02/26/2012
 A recently formed hospitality association is calculating its next move now that the group that was awarded the City of Penticton\’s tourism marketing, economic development and visitors centre is now dissolved. The Penticton Business Development Group was less than eight weeks into its contract to run the three services when it folded earlier this week. The decision to fold came following a meeting between the business group‘s board of directors and the Penticton Hospitality Association (PHA) on Wednesday. The PHA represents 33 of 43 accommodation properties in the city.  One of the issues which drove a wedge between the two parties erupted last year when the City of Penticton decided it would not renew the Penticton and Wine Country Chamber of Commerce‘s contract to run tourism marketing, economic development and visitor information services. On Friday some members of the Penticton Hospitality Association – who own and operate hotels and motels in the city – met to discuss a business plan involving how they would like to see the two per cent hotel room (HRT) tax is utilized. “As collectors of the two per cent (tax), we would like to think that we have knowledge enough to sit at the table and help market it,” PHA spokesperson Barb Schneiderat said, noting all accommodators with four rooms or greater collect the extra tax. Among those at the Penticton Lakeside Resort was association chair Trinka Pontes, vice-chair Norm Sekora, secretary-treasurer Ed Brown and directors Paul Buttar, Marko Cucnik, David Prystay, Barb Schneiderat and Amy Xu.  The PHA admitted it was perplexed when the city decided to put the three services up for bids without consulting hoteliers first. They also expressed they were surprised at the city‘s decision because they felt the chamber had been doing a good job. Three proposals were submitted (including the chamber‘s) and reviewed by a separate committee before the decision was made last October. The length of the contract was one year with an opportunity for renewal upon expiration. “We have never been opposed to change,” said Schneiderat. “What we have been concerned with is the PHA and the smaller accommodators were never invited to any of the meetings that were held.\" Schneiderat pointed out the accommodations sector raised $401,000 in 2010 and $419,000 in 2011–about a 4.5 per cent increase during a recessed time.  “That in itself says that we must have been doing something right.” The association is working on a business plan it plans to present to city council in the next few weeks. Tops on its priority list are to attract more visitors to the city. “Since it‘s our bread and butter, we feel that we are well-qualified to do that,” said Pontes. According to Pontes, when she attended the inaugural meeting with the business development society she left feeling as though hers and other accommodator‘s input was irrelevant. The association said the blame for the entire situation that lead to the business group dissolving rests on the shoulders of city council.  In the meantime, tourism, economic development and visitor centre staff will function under the city‘s umbrella until issue is ironed out. Pontes said she doubts that Subaru Ironman Canada will be among the new association\’s priorities because it\’s a for-profit enterprise. \"We have a limited budget,\" she notes. City council issued a release thanking the board of directors for the Penticton Business Development Society and its directors: Eric Sorenson (chair), Rod King (vice-chair), JP Kaumeyer, Robert Hodson Gordon Ferguson and Marko Cucnik.  “The dedication, professionalism and competence of these individuals displayed for the day the contract was awarded, were a tremendous benefit to the citizens of Penticton,” said Mayor Dan Ashton.

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