Hotels, bed and breakfasts, and campgrounds will have to start charging a mandatory tourism levy next year.
It comes after the province passed legislation allowing municipalities to impose mandatory levies.
Paulette Hicks with the Saint John Hotel Association says the city has had a voluntary three per cent levy in place for 10 years.
She says the funds to toward growing the tourism industry, and brings in much needed revenue for the city.
“In 2019 the voluntary levy collected around $1 million. Moving forward under the enabling legislation, which makes it mandatory for everyone, that forecast would move to probably $1.6 or $1.8 (million),” she said.
Hicks explains under the new bylaw, everyone in the province will be charging a 3.5 per cent levy.
“That was done strategically, so that when you’re a visitor coming to the province of New Brunswick, you’re not paying different percentages. It will be highlighted on every bill as a municipal accommodation tax,” she said.
Hicks says the levy benefits everyone involved: from hotels to businesses and residents.
“It’s not only for hotels, it’s for our restaurants, it’s for our shops, our galleries. 100 per cent of those funds work to promote our region, for meetings and conventions, big events, festivals like Area 506,” she said.
While the new bylaw is drawing praise across the tourism industry, some smaller businesses are worried about the impact.
Paul Hayes owns the Weir Inn, a small bed and breakfast on the west side.
He says he’s concerned about the administrative burden of the new levy, and how it will affect seasonal operations.
“Their bylaw provides for monthly remittances of the levy to the city. We don’t have anyone in the winter months, and so I suggested that the remissions could be made quarterly, like the HST,” he said.
Hicks says the levy will only need to be charged during months that places are in operation, meanings Hayes’ concerns shouldn’t be an issue.
The two both say only time will tell how successful or burdensome the levy will be.
Other jurisdictions will also start implementing tourism levies next year, including Moncton and St. Andrews. Fredericton has had one in place since November 1st.
The new charge will go into effect in Saint John on January 1st, 2020.
