Destination Marketing Fee (DMF) - Since 2001

Following 8 guiding principles developed in consultation with the industry, the goal was to:

• Protect collection mechanisms already in place in NB and provide those collecting groups with an authority to collect, manage and invest the funds generated.

• Provide a clear and transparent mechanism to prevent consumer confusion.

After numerous meetings with stakeholders and government officials, the DMF Committee requested that the Department of Tourism and Parks consider new options for legislation or regulation with respect to the issue of destination marketing fees or hotel levies. As a result of this request, the Department of Tourism and Parks has recently done an initial review of the issue.

It has been confirmed that enabling legislation is not required for Destination Management Organizations (DMOs) to have the proper authority to levy or spend funds for this type of arrangement.

To enact provincial enabling legislation for the regulation and standardization of a hotel levy would require a more thorough review of the options related to governance and appropriate guidelines for monetary and spending considerations. The identification of regions would likely be a factor and the application of fairness to industry players would need to be a key principle for a level playing field.

 A standardized or regulated process would also require coordinated oversight and would result in new management costs that the province is not currently in a position to implement.

During its most recent budget consultations, the Government of New Brunswick heard from citizens that they had neither the appetite for increases in consumption taxes nor the introduction of any new consumption taxes. According to 2009 NB accommodation occupancy reports, nearly half of all accommodations sold in the province were sold to residents of New Brunswick.  Government must take into consideration that a hotel levy could be perceived as a consumption tax and that it could have a significant financial impact on our taxpayers, not just visitors to our province.

The status quo provides a legally viable means for a Destination Management Organization or association of appropriate organizations to levy a fee on accommodations and determine the expenditures of the funds. Therefore, the Government of New Brunswick is not currently recommending the provincial standardization or regulation of destination marketing fees or a hotel levy.