Positive development on the Tourism Marketing Levy
Fredericton, NB - News Flash to the members-Spring 2011
Positive development on the Tourism Marketing Levy enabling Legislation file.
TIANB is extremely pleased to inform you all about a very positive outcome of a meeting held on June 10 with the Minister of Local Government, the Honourable Bruce Fitch and representative of his department in Fredericton. The meeting arranged by the Minister of Tourism & Parks, the Honourable Trevor Holder, was to ensure TIANB's participation in the Governance consultation process led by Minister Fitch' s department.
After the TIANB's presentation to the government officials and answering some questions on current models, rural versus urban implementation and ensuring the industry (TIANB's membership) had been consulted on the project, the Ministers indicated they hoped to move toward dealing with the legislation once the house resumes in the fall of 2011. Although complex at times, thus time line may be a challenge, it is however our understanding that the intent from the ministers is there.
The bill will be to introduce an enabling Legislation for the municipal governments to initiate a bylaw for the collection of a Tourism Marketing Levy within municipal jurisdictions. Possibly relative to the Municipalities Act, the tourism industry need to be alert and ready to ensure, municipal governments only enact such a bylaw under the premise of the following principals and guidelines resulting from a TIANB consultative and inclusive process:
1. Marketing Levy funds will be used for tourism purposes only;
2. The levy is applied only with the support of a minimum 51% of total eligible establishments representing 51% of the total eligible units in the municipality or region involved;
3. The rate of the levy and the size of the establishment to which the levy applies shall be established by the regional/local management body;
4. Municipalities commit to their current level of investment in tourism prior to the passing of a by- law creating the Marketing levy;
5. That the tourism industry in the involved jurisdiction and the local government agree on how the funds are to be managed and for what purposes they may be used, prior to the introduction of a bylaw;
6. That all roofed accommodations of more than 10 units be included;
7. That all campgrounds of more than 10 sites be included;
8. All marketing Levy funds collected are to be managed by a designated body within the region where the funds was collected and having a majority seat held by tourism industry operators. Neighbouring municipalities and/or regions choosing to direct their funds to a joint regional body are to include tourism industry representation from those neighbouring municipalities in the management committee of collected funds.
9. A (5) five year clause is to be included so as to allow for renegotiation of fee percentage and or collection rules.
10. That the province of New Brunswick consults TIANB as the Legislation is developed.
TIANB will continue to monitor the passage of this initiative as it relates to the provincial government however, it is critical that you as industry members be vigilant to make absolutely sure that your local municipal councils and senior policy makers within the municipal government adhere to the aforementioned conditions. It is important that you work on the local basis, as there is tremendous pressure on municipalities to find new revenue sources.
This is a new revenue source and if you don't insist on the conditions outlined, there is a very real possibility the Marketing Levy money will be directed to general revenue or the revenue will be used to offset existing tourism department budgets. If this is the case then the marketing levy will simply become a specialized tax on your property and not something that is going to help develop the tourism businesses in your area.
We need you to be on the ground and paying close attention to this file. You should start meeting and discussing this issue with your municipal government NOW.
Working together we can make this a positive thing for our industry.
In preparing for your meetings with your municipal officials, we at TIANB would be glad to provide you with information and documents, as required. We also encourage you to communicate information to the TIANB office on meetings or discussions being held in your communities and /or regions.
Thank you for your ongoing support on this and all other initiatives. We look forward to work with you to continue the growth and sustainability of our industry in New Brunswick.
Réal Robichaud, Executive director
TIANB/AITNB
