Photo: Kelowna Tourism
The City of Kelowna and Tourism Kelowna are working to extend their working partnership for an additional five years.
The partnership includes an extension of the three percent tax levied on all hotel room stays and short-term rental bookings.
The agreement, which clarifies their respective roles, responsibilities, and expectations regarding their working relationship, would be in effect from July 1, 2022 through July 1, 2027.
It would also establish financial contributions from the city to Kelowna Tourism.
In addition to an annual operating grant of $ 344,430, the city transfers any funds raised through the hotel tax (MRDT).
In 2019, that totaled $ 3.1 million, but due to the COVID-19 pandemic, that revenue decreased by about 30 percent ($ 2 million) in 2020.
The funds raised in the first five months of fiscal 2021 are only $ 405,000. These are expected to increase significantly as the province opens up tourist opportunities.
All funds raised by the MRDT will help promote the city and region through Tourism Kelowna as a travel destination.
In order to continue to levy the hotel room tax, at least 51 percent of the accommodation establishments, which represent at least 51 percent of the total number of accommodation units, must support the tax.
So far, only 14 out of 64 houses in the city, representing 2,211 out of 4,912 rooms, have indicated their support.
Tourism Kelowna is expected to continue conducting one-on-one and industry groups with accommodation providers for the next two months.
The three percent tax levied on short-term rental bookings does not go to Tourism Kelowna, but instead helps fund the city’s affordable housing initiatives.
