By Jessica Depatie
The new city budget ensures that the Ottawa Tourism and Convention Authority can continue operations through 2004, but beyond that its future is uncertain.
The organization avoided a worst-case scenario, a proposed 89-per-cent funding cut when city council approved a one-time, capital-budget allocation of $1 million to be divided by 28 arts and festival groups and the OTCA.
“We are happy to be able to continue our work,” says Jantine Van Kregten, the tourism authority’s director of communications.
However, the question on the minds of some is what happens next year when the OTCA’s budget is reduced to $173,000 from its current $1.17 million.
There are three options, explains Van Kregten.
One, is a levy by hotels on their rooms such as the one that was already being discussed with local hoteliers and resembling the one already in place in Toronto.
Another, is a provincially legislated hotel room tax, which Van Kregten says “is an idea, but there is a very slim chance that it would be in place by 2005.”
More likely she added, city councillors voted unanimously to force the issue of bringing in some form of hotel tax to fund the tourism authority and festivals, starting Jan. 1, 2005, suggesting a municipal hotel tax may be on the horizon.
“Over the next month, will be an important time. Jacques Burelle (OTCA president) will be meeting and discussing this with the city and the hoteliers,” says Van Kregten.
Such a fee could be significant for not just the OTCA but also local festivals.
“Projections call for between $4 million and $6 million in revenue,” says Van Kregten.
However, there is some question whether the city can legally legislate a hotel tax, which Dick Brown, executive director of the Ottawa Gatineau Hotel Association, says only the province is allowed to do.
Another uncertainty relates to how the tax or levy can be used. Anthony Pollard, president of the Hotel Association of Canada, says there are criteria that must be met before they can support any sort of marketing fee.
But Polland says he feels that in large part Ottawa has met these criteria.
One of these criteria implies revenues from the fee should go only to tourism marketing and not to supporting core operations of organizations such as the OTCA.
And while the tourism authority prepares to present its case, local convention facilities are unsure of what would happen if the OTCA closes.
“The effects may not be devastating over the next year or two since such events are planned years in advance, but in the next five or six there would definitely be an effect,” says David Hamilton, president of the Ottawa Congress Centre.
Hamilton points out that should the tourism authority close, Ottawa would be one of the few major cities not to have such an organization.
“We will wait to see what happens,” he says.