City councillors explore hotel fee to fund tourism
'Voluntary' fee would generate funds for tourism initiatives
Stewart Burnett
Northern News Services
Monday, May 23, 2016
IQALUIT
A destination marketing fee for Iqaluit is a good idea, says Nunavut Tourism, but it needs to be implemented properly.
Iqaluit Coun. Kuthula Matshazi got the go-ahead from council to explore the potential of a destination marketing fee for the hotel industry. The fee would be voluntary and money used for city tourism initiatives. - Stewart Burnett/NNSL photo |
Iqaluit's city council is exploring the idea of adding a fee to hotel stays in order to generate money for tourism.
"I think if the territory or the city wants to truly make some improvements, this is a positive step forward in allowing those changes to happen," said Kevin Kelly, CEO of Nunavut Tourism.
"There are only so many times you can go back to the pot for money from the government. You need to start thinking outside the box. This is thinking outside the box, allowing for an additional revenue source for the city."
The idea comes with one condition - that the fee be implemented properly and not end up back in general revenue funds.
"I think it should have a specific set of requirements surrounding it," said Kelly, adding hotel staff would need to receive information as well.
"It's got to be clear from the get-go. Putting it into general funds, in my opinion, I think that that would be a mistake."
Coun. Kuthula Matshazi, who spearheaded the effort, defines the proposed fee as voluntary - one that would not be enforced by the city but instead agreed upon to be mutually beneficial by those in the hotel industry.
"We want our hotel industry and general tourism to be competitive," said Matshazi.
"If we create a marketing fund, it will help specific projects that the industry players will choose."
The industry players levying the fee would also decide what it should be spent on, he said. For example, implementing additional marketing material in the airport.
The fact the city is not levying the fund begs the question why it is involved at all, Matshazi noted. He said it is in the interest of the city to do what it can to enhance tourism and help the hotel industry prosper.
Matshazi did not provide a dollar figure for the fee, but Kelly floated the possibility of tacking on five to seven dollars per night per hotel stay.
Considering the bulk of the city's tourism is couples with earnings over $150,000, Kelly doesn't think the small fee would be much of a detriment to the industry.
"It could definitely have a bad effect on tourism here in a way, but I strongly feel that if they are going to implement something like this, it needs to come with a full education program," said Kelly, referring to training hotel staff on how to explain the benefits of the fee to customers.
He added there is a multitude of things the city needs to do before it can even start marketing itself as a destination. High on the list are infrastructure improvements, such as sidewalks and improved trail signage. Kelly says Iqaluit has tremendous potential as a destination for meetings and conferences.
Matshazi said the city will now be approaching the hotel industry to discuss how the fee could be implemented.
