Sunshine Coast Tourism successfully asked the District of Sechelt for a letter of support in increasing the Municipal and Regional District Tax (MRDT) from two to three per cent, at a regular council meeting July 30.
Annie Wise, executive director of Sunshine Coast Tourism, explained to council that as the designated recipient of the tax in the Sunshine Coast/qathet Region, Sunshine Coast Tourism is preparing its five-year renewal application for the program.
The MRTD is a provincially legislated tax paid by visitors on their accommodation, and which regions or communities can choose to “opt-in” to, at either two or three per cent. In a letter to council, Wise explained the tax is collected from 71 communities across the province, with 44 of them charging three per cent.
Sunshine Coast Tourism receives two per cent for the region, which includes the qathet and Sunshine Coast Regional Districts and the municipalities within, including District of Sechelt, Town of Gibsons, and the City of Powell River. The tax generated just under $1 million in 2024, and those funds were reinvested into tourism marketing programs and projects and, in part, affordable housing initiatives through a separate allocation from Online Accommodation Platform revenue.
The province requires a MRDT renewal be submitted every five years and as Sunshine Coast Tourism is preparing its application for the 2026-2031 period, it’s proposing the one per cent increase, which would generate an estimated $1.5 million per year. A letter of support from the district is a required part of the renewal application.
The MRDT, which can only be implemented with the support of accommodation providers, the tourism industry and local governments, remains one of the most effective policy tools available to help communities achieve their tourism goals, “offering a predictable framework with clear accountability, locally and provincially,” Wise told council.
In her letter to council, Wise said the increase is in line with many comparable destinations across BC, including Squamish, Campbell River, Vernon, Penticton, Golden, and Ucluelet, among others — and reflects the growing need to maintain a competitive, year-round visitor economy.
“The additional funds would allow SCT to expand its role in regional promotion, festival support, sustainability and new market development, all while maintaining strong governance and public accountability,” said Wise. “Successful MRDT applications require signatory support from the accommodation sector and letters of support from all local governments within the region. This requirement ensures the cooperation, collaboration, and balance between the tourism industry’s needs and the broader community as represented through local government.”
