Moncton-area tourism promotion group can soon use hotel tax revenue
CBC
A not-for-profit organization seeking to lure visitors to southeastern New Brunswick is a step closer to getting underway.
In 2019, Moncton and Dieppe implemented a 3.5 per cent tax on hotel room bills. The money raised is meant to fund a destination marketing organization.
Jillian Somers, Moncton's director of events and tourism, said the main goal is promoting travel to Moncton, Dieppe and southeastern New Brunswick in Ontario, Quebec, Atlantic Canada and internationally. It will also look to attract conventions and group travel to the area.
"So this is an exciting week for the destination marketing organization," Somers said in an interview.
On Monday, Moncton council approved standards for how the organization will operate and how the money raised through the tax will be disbursed. A board for the organization has also been appointed.
It was one of the final steps needed before the organization, founded by the cities and the Greater Moncton Hotel Association, can start its work.
"This has been a long and sometimes difficult road, but we're very pleased to be where we are now with it," Ron Toogood, the owner of Coastal Inn in Dieppe and one of the board members, told Moncton councillors Monday evening.
He thanked the city and others who have worked to establish the organization over more than a decade.
The hotel tax began being applied on bills in September 2019 and $2.2 million has been collected in Moncton since then.
That's below the $2.3 million to $2.7 million projected to be raised annually prior to the pandemic, which left many hotel rooms empty for long periods of time.
"As you can well imagine, COVID significantly influenced our occupancy rates in the city," Somers said. "So we're looking forward to recovery as part of this and to continuing to see that that fund grow."
The tax applies at hotels, motels, hostels, inns or other facilities with six or more rooms in Moncton and Dieppe.
It doesn't apply to rooms used for emergency shelter or for stays of more than 31 consecutive days. Campgrounds and trailer parks are exempt.
Some of the money will be returned to the City of Moncton to cover administration costs for the tax and marketing organization.
This First Person column is the experience of Shannon Flaman, who lives in Red Deer, Alta. For more information about CBC's First Person stories, please see the FAQ.
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