SOMBA K'E/YELLOWKNIFE - Some Yellowknife hotel managers differ on whether a one or two per cent hotel room tax would help or hinder the tourism industry in Yellowknife.

Jiten Jattan, general manager of The Explorer Hotel, said he is not in favour of a hotel room tax proposed by the city of Yellowknife. Jenni Bruce and Derek Carmody, managers of Chateau Nova and YK Inn, respectively, have expressed their support of the motion. - NNSL file photo

On Monday night, city council voted 6 to 1 in favour of a hotel room tax orginally recommended by the Northern Frontier Visitors Association. City councillor David Wind was the sole dissenting vote.

Now council will forward its resolution in support of the levy to the NWT Association of Communities. At its annual general meeting in Hay River from May 13-16, the association will need a majority of members to vote in favour of the resolution before the association can lobby the GNWT to revise legislation allowing a tax to be levied.

Coun. Mark Heyck previously said the money raised from the levy would help fund a convention marketing program bureau in the NWT.

Heyck added the levy was supported by hotels around Yellowknife, but comments made to Yellowknifer on Monday by Explorer Hotel manager Jiten Jattan suggest otherwise.

"We're opposed to it," said Jattan. "We're opposed to any tax that going's to affect our guests."

Jattan declined to say anything more.

The levy has the support of Derek Carmody, manager of YK Inn as well as Jenni Bruce, manager of Chateau Nova and president of the Yellowknife Hotel Association.

"Originally, when I heard about it, I was against it," said Carmody. "I think I get scared any time I hear the word 'tax'.

"But after further researching it, I think it will be a good thing. If it's used and managed properly, it will open up more business and advertising in the North."

The money will go toward promoting the North as a destination for travellers – something the territory needs to do more of, said Carmody.

"Watching TV, I see the majority of provinces are advertising their area. I don't remember seeing much on the NWT. Hopefully, using the funds will open that up."

Last year, NWT Tourism, which is also supportive of the levy, aggressively plugged the NWT as a tourist destination through full-page colour ads in publications like the Globe and Mail – ads that one year before might have cost $50,000 but went for a fifth of that cost.

The number of visitors to the NWT last year went down to 73,419 from 79,572 the previous year, according to the Department of Industry, Tourism and Investment. Visitor spending also declined to $130.3 million from $137.9 million.

Bruce, who made a presentation on the proposed levy to city council Monday night, said she supported the levy because of its potential economic impact on Yellowknife, adding it will help the city market itself as an ideal venue for conventions.

"The convention bureau would be run by the Northern Frontier Visitors Association, which is ideal, because down south they're called 'visitors centres and convention bureaus,'" said Bruce.

She added any levy would be minimal – probably one to two per cent.

Depending on city council's vote, council will then write a letter forwarding a resolution in support of the levy to the NWT Association of Communities. At its annual general meeting in Hay River from May 13-16, the association will need a majority of members to vote in favour of the resolution before the association can then lobby the GNWT to revise legislation allowing a tax to be levied.