Hotels and bed and breakfasts in the souk area are one step closer to imposing a new tax on tourists.
The Sooke District will apply for the Municipal and Regional District Tax (MRDT) program, which will fund local tourism marketing activities.
But the proposal has faced opposition from some tourism operators who argue that the additional tax is burdensome and could have a negative impact on the local tourism industry.
Enacted in the 1980s, the MRDT is a tourist-funded provincial tax program that adds a 2-3% tax to hotel and other lodging rates from Metchosin to Port Renfrew. Sooke is one of the few municipalities in the province that does not take advantage of the tax.
Sooke District Economic Development Officer Gail Scott pointed to a draft report called “Juan de Fuca Corridor: A Community-First, Regenerative Tourism Plan” as the catalyst for renewing her push for a hotel tax.
“This report sets out a dynamic new way forward for sustainable, responsible tourism stewardship through building relationships with neighbouring communities and beyond,” Scott said.
The report outlines ways in which tourism can boost economic and social development in the Juan de Fuca Corridor without compromising cultural heritage.
To implement the MRDT, tourism associations from Sooke to Port Renfrew need approval from local municipalities and the National Capital Region District. The tax applies to all short-term rental properties with fixed roofs, but only properties with four or more rooms can vote for the tax. Exceptions include properties on First Nations land and long-term rentals of around 25 days.
Councilman Kevin Pearson noted discussions about the hotel tax have been ongoing for the past decade and said, “It definitely feels like we’re making progress. For the first time, it feels like the ground is starting to shake.”
The MRDT process involves multiple stages of community and industry engagement. 4VI (formerly Tourism Vancouver Island) is leading the work. The first steps include tourism system planning meetings, interviews and reports. Subsequent stages include background research, stakeholder workshops, strategic planning and final approval of a five-year business plan.
– Reporting by Rick Stibel
