1. All MRDT funds collected would come back to our region for tourism marketing programs and promotions.
2. It is expected between $360,000 to $450,000 could be collected (less an admin free from the Ministry of Finance).
3. The money can be used outside current program restrictions to support marketing, development and visitor servicing activities we are not allowed to do now.
4. The funds would be managed by Cariboo Chilcotin Coast Tourism Association to ONLY execute the Tourism Plan that has been developed based on industry input. The plan supports all businesses and communities.
5. The MRDT requires support and approval by majority of eligible accommodations (minimum 51% of properties and 51% of units), 6 municipalities, 7 regional districts, Destination BC and Ministry of Finance BEFORE it could be implemented.
6. The MRDT approval only lives for 5 years then all eligible accommodations would need to show support again.
7. If you collect PST now, then you are an eligible accommodation for MRDT.
8. MRDT is only charged on the portion of the bill that is attributed to the eligible accommodation, NOT the full package amount.
9. Our region is at a competitive disadvantage: 53 other areas in BC collect a combined $27.5 million dollars each year AND the other six regional DMOs EACH have at least $700,000 more to spend each year than ours.
10. Cariboo Chilcotin Coast only represents 3% of BC's 15.7 million visits and 1% of the $8.1 billion spending in total spending (2010). We can get more people to visit and spend more tourism dollars. We now have a plan, but we need more resources to implement it. MRDT is a viable option. 

Pat Corbett, owner of the Hills Health Ranch Resort, sent us an email exchange he had with another accommodation owner before Christmas. We thought you would like to read his responses to the questions, in case you had similar questions. In his own words . . . .    

Hi Pat. Are you in favour of paying the additional hotel tax?

Yes, I am NOW in favour of it whereas I have always opposed it to this point. My reason for changing my mind, is that I have been adamant that it must flow through the region and not several different communities because of the wasted Admin Dollars that goes into each community to 1) find an office; 2) hire an Exec Director or a "CEO"!!????; 3) who then wants a secretary; 4) and then need computers, cell phones, car allowance etc; 5) NOW there is reduced cash for marketing... So I have been pushing hard that I would only support it if it went through the region. There is some support for that, and is going to be very unique in BC if it should be approved (& it may not).

I sincerely believe the reason that our region continues to lose market share is that the other BC regions have so much more money. The travel-tourism marketplace is like a war-zone right now, huge battles for market share. I know one of the reasons is that we are outgunned with marketing messages tremendously in the marketplace. There are now close to 55 communities that have this pot full of money, and they are leveraging it with the regions, and it's impossible for us to be heard in the marketplace now with our "piddly" dollars. So, over the past 12 months, I have altered my views to the above, after seeing what some of the regions/communities are doing, and what we are up against. Our total spend as a region is 1/4 of the next smallest spending region, and less than 10% of what is being spent in Okanagan, Rockies etc... So our 600,000 doesn't do anything when up against 4-10,000,000.  It's come to a point in my mind where we are using DC3's while up against F16's!

I hope this makes some sense to you, but it more or less summarizes where I have arrived at over the past year and why/how I think we can get back into the marketplace.

I hate taxes, and have always argued against it, always...for 15 years.

I have had to re-evaluate my thinking after observing the 55 communities and how they are now leveraging this through their regions Destination BC. I have only attempted to see how we could do it better, and working it through the regions makes so much more sense to me, so we don't get a bunch of new staff across our region, in offices, when we have all of that now.  So this is how we can gain added efficiency and far more effective use of the funds raised.  "Those are my thoughts"...Have no idea if you agree or not...but this summarizes my "journey".

Thanks Pat, your feedback is very much appreciated. The problem I have with taxes is that it becomes an easy way of getting money, which is then used less efficiently. Pat, if the increased tax is approved and put in place, how difficult would it be to turn back?

It is reviewed every 5 years, for those exact reasons, which is good...and it's up to the "accommodation" community to manage those funds, which I also like. It's not just about "communities", it's up to you and I and the accommodation sector.

Would it be possible to reduce the first review period to two years, and then back to five? The travel trade will not like the 2% increase to the selling price (...nor will our customers); seeing as our prices are already published for 2014, and bookings for next year in hand, can I assume that any new tax will not come into effect until 2015? I see the need for more money to be spent on promoting our region; I still need to get my mind around agreeing to a tax increase though. 

The legislation that allows this "additional hotel room tax" (MRDT) is clear in how it instructs each jurisdiction that has voted it in, that the review periods are each 5 years so there is no room to alter that due to the legislation itself...In terms of implementation dates, I we are at least till 2015 from it being a new tax, as it will take most of this year to possibly attain broad support, and then by the time the Province passes the appropriate OIC (Order in Council) to allow it to proceed, we will be in 2015 I am sure.

I am not sure if you are aware, but it takes 51% of the hotel/motel/resort properties PLUS 51% of the room base in the region to get this approved ...so a long way to go!!

Thanks again Pat. Excuse me for asking you so many questions, let me know if it taking up too much of your time this busy time of the year. Will the tax be charged to room only or to a complete package price? We have a very large region(s); will where monies are collected from have any weight as to where the collected taxes are spent. I am tending towards being in favour of the idea, in no small part to your having studied the subject and being in favour of it.  

The following questions were posed by multiple accommodation owners.  

How do I know if this applies to me?

The MRDT would apply to accommodation properties with four or more units, which has the same guidelines as PST collection. A simply way to determine if you are eligible is if you collect PST. If you do, then you would be an eligible accommodation for the MRDT collection as well.

Does this apply to my entire customer bill?

No, the MRDT tax only applies to the portion of the bill that is attributed to the eligible accommodation. If you have a set package rate, you would need to apply a value to the accommodation and only that portion would be taxed.

Does the MRDT money need to be spent within the confines of Destination BC program guidelines?

No, that is one of the benefits of the MRDT. We have the ability to spend the funds in whatever way the Cariboo Chilcotin Coast industry feels is best, provided it is a tourism marketing program. There are so many opportunities we could not market before because they didn't fit, such as marketing to the business travellers. These would be our funds to do with as we collectively wish as identified within an approved Tourism Plan.

Would all the funds just go towards general regional messaging?

No, the Tourism Plan, based on input from community engagement meetings, surveys and individual conversations, was developed to ensure everyone would benefit from destination development and marketing efforts. The Tourism Plan outlines the funds would be divided between regional marketing, corridor marketing, community marketing and marketing activities to assist individual businesses. Also, there are funds for visitor servicing and destination development activities, to ensure we have new products and experiences to attract new visitors. There is the ability to be flexible to tailor activities based on specific areas and sectors within the region. Please read the Tourism Plan for more information.

Why can't we just ask government to give us more funds, e.g., a larger part of the PST and other revenues they have?

As identified within the Tourism Plan, the MRDT is just one of the ways we are going to try to collect funds. We are going to look at other government programs and sources (provincial, regional district and municipal). But the MRDT program has been set up by the provincial government to provide destination areas with a funding source. We know the will direct us back to the MRDT as a funding program to access first.

 It is already hard enough to keep ones 'head above water', how can we afford to put more in?

We know these are challenging times for many of our businesses and some of you feel uncomfortable charging a new tax to your customers. We believe the benefits from the MRDT will help to attract more visitors to our region and increase tourism revenues, which helps to keep everyone's 'head above water'. As a consumer tax (this does not come from your pocket directly), we have heard from 53 other areas within BC collecting the MRDT that the tax has been helpful and has not been negative to business. Also, as identified within the Tourism Plan, there are funds allocated to work with individual businesses to help their specific business challenges. We would work with you to ensure the execution of the Tourism Plan helps your business.

If all areas of the province are paying the extra fee for Tourism, how do we get a larger share of tourists?

The region is at a competitive disadvantage to other areas within BC who access significant funds from the MRDT to market their tourism industry. In addition to the work already being done, we need to generate more funds, develop more tourism experiences, increase the awareness of our region, and better promote our products and experiences. The Tourism Plan has been developed based on the tourism industry input to how we need to do this. Please read the plan and let us know if you have any questions.

What percentage of the MRDT funds would we keep?

Unlike other government tax programs, where only a portion of the funds may go to a specific purpose, for the MRDT, we keep 100% of the funds less an administration fee from the Ministry of Finance (we estimate the total annual cost to be about $35,000 or 10% of the about we could collect as a region). We are working to try to reduce that fee due to the large number of smaller operators within our region.

Why are campgrounds not included?

We have contacted the Ministry of Finance for an explanation and they have provided us this response:

"Municipal and regional district tax (MRDT) applies to sales of short-term accommodation provided in participating areas of British Columbia. A bare campsite rental (i.e., just a space to pitch a tent or park an RV where no accommodation is sold) is a rental of real property rather than a purchase of accommodation. Real property is not subject to PST or MRDT. Tents are accommodation rather than real property; however, accommodation provided in tents is specifically exempt from PST and MRDT. The exemption is provided under paragraph 78 (1)(i) of the PSTERR."

What are third-party rights - "Invest in approved third-party rights usage media, including video b-roll and still images"?

Currently, many images (photos) and video b-roll are only allowed to be used by the owner of the image or someone who pays to "rent" it from the creator, e.g., photographer. Approved third-party rights would allow anyone to use the image for promotions at no additional cost, including tourism businesses, media, travel trade, CCCTA, Destination BC, the Canadian Tourism Commission, etc.

Can you force me to collect this?

The MRDT will only be collected provided the majority of eligible accommodations within the region support the collection and sign the Show of Support document. After this transpires, we would then need to get approval from 7 regional districts, 6 municipalities, Destination BC and the Ministry of Finance. It is a long process. If all those approvals are achieved then the MRDT collection would follow the same guidelines for collection as the PST. It would be mandatory for eligible accommodations.

When do I need to sign the Show of Support document by?

Ideally, January 31. However, that date may be flexible as we are committed to ensuring every business owner is contacted and understands the MRDT and Tourism Plan.

Where do I get a Show of Support document to sign?

You can email us at MRDT@landwithoutlimits.com and we can email one back to you or phone us at 1-800-663-5885 or 250-392-2226 for other arrangements.

Do all accommodation owners need to sign the Show of Support document?

It is important that all eligible accommodation operators who support the MRDT sign a Show of Support document as these need to be included in the application to the Ministry of Finance. There is no signature collection process for those that do not support the MRDT.

How many people need to provide signatures for the MRDT to move forward?

51% of eligible accommodations AND 51% of rooms must approve the collection of the tax. Also, are needed from 6 municipalities, 7 regional districts, Destination BC and the Ministry of Finance.

Does the government tell us how to use the funds?

No, the government does not determine how the funds will be used, however there are guidelines. The funds are intended to be used to execute a tourism plan that accompanies a MRDT application. Further, the MRDT is intended to "assist municipalities, regional districts and other eligible entities in promoting tourism in their area".

Why is the CCCTA doing this?

Multiple tourism accommodators in the Cariboo Chilcotin Coast have brought forward the idea to have the MRDT implemented within and for the entire region. The CCCTA can work as a single entity to promote the entire region on behalf of all communities, which will reduce administration costs and enable more funds to go right into active working marketing programs. The region is at a competitive disadvantage to other areas within BC who access significant funds from the MRDT.

What does the CCCTA plan to do with the funds?

The CCCTA will execute a Draft Tourism Plan that will be further developed based on industry input. This draft plan has been created around four areas: Destination and Industry Development, Marketing, Visitor Servicing, and Tourism Management. The CCCTA will work with industry to finalize actions under each area.

I would like more information on the MRDT and how this all works.

Please email us at MRDT@landwithoutlimits.com and we can email you all the information as the Tourism Plan. Or you or phone us at 1-800-663-5885 or 250-392-2226 to discuss or for other arrangements.

Do I have to participate?

Provided there is sufficient show of support from the accommodators and the approval is granted from the Ministry of Finance, then all eligible accommodators will need to participate and collect the MRDT.

I don't meet the criteria as an eligible accommodation, but I still want to participate. What can I do?

There are ways you could still participate, for example you could voluntarily provide funds to be pooled with the MRDT collection. Contact Amy Thacker at amy@landwithoutlimits.com for further information.

I am out of the region. Can I email or fax you my show of support?

Show of Support can be provided by a fax or scan. A scan of an original document with an original signature on it attached to an email will be accepted. A Show of Support document will be posted on the CCCTA website for download or contact us at MRDT@landwithoutlimits.COM for a copy.

I'm not an Accommodator. Why should I care about this?

Tourism provides economic benefits beyond tourism accommodations and other tourism businesses, which benefits everyone in municipalities and regional districts within the CCC region.

I'm not an Accommodator, but I still want to participate. What can I do?

There are ways you could still participate, for example you could voluntarily provide funds to be pooled with the MRDT collection. Contact Amy Thacker at amy@landwithoutlimits.com for further information.