In partnership with accommodation providers from around the province, TIANB led the lobby effort with the provincial government for the implementation of enabling legislation for the collection of a Tourism Marketing Fee (TMF).
To view the most recent TMF update, see below:
Frequently Asked Questions about a NB Tourism Marketing Levy
What exactly is a Tourism Marketing Levy?
The tourism industry uses a number of terms and applies a variety of meanings to the terms used, including hotel tax, hotel levy, marketing levy, destination marketing fee and destination marketing fund. But basically, these levies all have a common purpose which is to collect extra money in order to support tourism marketing initiatives and tourism development.
Are such levies applied elsewhere?
The introduction of room or hotel levies to support tourism marketing initiatives and tourism development is a growing trend in augmenting tourism funding throughout North America and has become an accepted practice by the consumer. In fact, similar levies are applied in cities in all other provinces in Canada, some on a voluntary basis, others mandatory. Levies applied in Canada vary from 1.5% to 3%. In the US, some cities and counties can levy local hotel taxes at rates varying up to 7%.
Why is TIANB pushing this levy?
TIANB is not exactly pushing this levy but rather wanting to lead the charge on this important issue. This matter is regularly discussed at many tables and it is the feeling of our Board of Directors that TIANB must be proactive.
We in fact feel that it is appropriate for TIANB, as the primary advocate for the tourism industry, to suggest terms and conditions under which it would be comfortable seeing such legislation passed by the Province. Not only may it guide the Province, but it might also become a standard negotiating position with municipalities once provincial enabling legislation is passed if it does move forward.
How did the Board of Directors go about developing the 8 principles that are proposed for discussion?
These 8 principles are the result of reviewing a variety of levy models across the country. At various times drawing up these proposed conditions, the list has grown as long as 25. But in the end, we chose to carve it back to more basic principles to serve as a starting point for our discussion. We believe that presenting a simple, clear position to government is in our best interests at the outset and we can delve into ever greater detail with the Province as the details of any proposed legislation comes forward, if it ever does.
If the Province moves forward with this levy, will the industry really have its say on the guidelines and implementation?
This is the reason why TIANB got involved in this important issue. We want the industry to have its say in the implementation of the levy, in the usage of the monies collected and in the characteristics of the collectors.
There are many basic similarities in how such levies have developed in various jurisdictions, there will also be differences in detail as a homegrown New Brunswick model emerges, if it emerges. Why? Because the very nature of the Province's relationship to its municipalities is different, particularly around the ability to collect levies, fees and taxes. In some provinces, for instance, the city itself has a tax or levy collection mechanism. In NB, this is a role played by the province and then the collected funds are turned over to the cities, as is the case with property taxes.
What is in it for tourism operators?
With what is proposed for discussion, tourism operators would benefit as a percentage (%) would be returned to them as a credit to cooperative ads, hence allowing rebated advertisement for their properties. And of course, having more funds for marketing destination would allow all operators throughout the province, big or small, to participate in marketing programs and initiatives.