By Kelly Bullock
Daniel Laliberte, general manager of the Kent Street Marriott, says the new proposed three per cent marketing fee on hotel rooms would generate funds to help Ottawa compete against other tourist destinations.
“Our tourism marketing dollar is so small that we need this levy or another form of tax to compete,” says Laliberte. “The whole purpose is to bring Ottawa to the forefront.”
Jacques Burelle, president of the Ottawa Tourism and Convention Authority, says 75 per cent of Ottawa hotels are in favour of the new “destination marketing fee” that would go solely towards marketing Ottawa as a tourist destination.
“It will allow us to better advertise and market against provinces with a province-wide tax,” says Burelle.
Ottawa’s move towards the fee follows closely behind Toronto’s adoption of a similar initiative back in January. Provinces with a similar hotel tax include British Columbia, Alberta, Quebec, Nova Scotia and Newfoundland.
Burelle says the proposed fee would generate an extra $5 to $6 million annually. Currently, the only money available for marketing the Ottawa Tourist District comes from hotels, when they can afford it.
Dick Brown, executive director of the Ottawa-Gatineau Hotel Association, says he will not approve the proposed fee until he has 100 per cent cooperation from all Ottawa hotels.
Brown refused to comment on where the proposal stands except to say he hopes it will be a success.
“If it is successful it will generate substantial money to market Ottawa as a destination,” he says.
Ottawa room rates currently include the seven per cent GST and a five-per-cent provincial tax.
The new marketing fee would see customers pay 15 per cent in taxes and fees, the equivalent to both federal and provincial taxes on goods and services.
Somerset ward Councillor Diane Holmes is a strong supporter of the proposed fee. She says the city needs more money to bring in new tourism.
She’d like to see half the generated funds be put towards marketing the city as a tourist attraction with the other half toward new tourist attractions in the city.
“Our tourists come and go to Parliament Hill,” says Holmes. “If you have no new exciting things to do they’re not going to come.”
Holmes says the proposed fee is essential to tourism in the area.
She says occupancy rates dropped 15 per cent in 2002 and dropped another 4 per cent in 2003.
Sheila Love, general manager of the Bostonian Executive Suites on MacLaren Street, says she’s in favour of the proposed fee.
“They’ve done it in the Outaouais and Toronto and they’ve had a positive response,” she says. “Ottawa’s been left behind and we have to do something.”
Don Blakslee, general manager of the Lord Elgin, says he’s also in favour of the fee and also cites Toronto’s response as a reason.
“It’s been implemented in Toronto and I understand there has been no negative response,” he says.
Burelle agrees with hotel managers and says he doesn’t think there will be a negative response from customers.
“It isn’t going to discourage anyone,” Burelle says. “On a $100 hotel room it’s an extra three dollars. We have data from all the other five provinces that have had this in place for a long time and it hasn’t hurt tourism.”
If the hotel association gets all Ottawa hotels on board, tourists can expect to see the proposed fee on their bills as early as the spring.