Sunshine Coast Regional District directors decided to support renewing the Municipal regional District Tax (MRDT) at two per cent, but not without pushback from at least two directors suggesting it should have been raised.
Roberts Creek director Andreas Tize said the region should have moved ahead with the maximum tax increase of three per cent.
The Sunshine Coast needs better data, infrastructure, transportation, more attractions and variety for tourism, Tize said. “I don’t think anybody booking a vacation is going to say we’re going elsewhere because we have a $2 increase on the average room [per] night.”
Paul Kamon, executive director of the destination marketing organization Sunshine Coast Tourism, was invited to speak at the July 9 planning committee where the tax was discussed and agreed the increase wouldn’t make a significant difference for customers.
Still, it wasn’t supported by “the bulk of accommodators,” who have to sign letters of support for the tax to be implemented, he said. “They did suggest if we recover properly that they would be looking towards three per cent at the next renewal, which would be five years from now. Right now they’re just trying to survive.”
Town of Gibsons director David Croal said he didn’t support “locking” the two per cent in for five years because it was “short-sighted.”
Chair Lori Pratt said directors should support the tax as-is. “If they’ve got the majority of accommodators supporting the two per cent, we don’t want to mess with that,” she said.
Kamon added that even at two per cent the tax revenue has been increasing by about $20,000 each year over the past three years and is averaging about $350,000, with the Online Accommodation Platform (OAP) money adding another $140,000.
“Overall there should be a little more money to be able to do things,” he said.
He also said it could be time to start looking at development projects instead of putting 80 per cent of the funding towards marketing. “For the most part we don’t have to do a lot of marketing. The Coast is very well known and very busy,” he said.
Sunshine Coast Tourism is responsible for administering the MRDT funds, which are meant to fund tourism marketing, programs and projects. As of October 2018, short-term rental accommodations or OAPs were required to collect MRDT.
Tize opposed the staff recommendations for the SCRD to provide a letter of support for the renewal of the MRDT at two per cent and to support the OAP funding guidelines, which included contributing funds towards workforce housing and “destination development needs.” The rest of directors voted in favour.
The District of Sechelt has already provided its support, as has the qathet Regional District.
