MuskokaIronman-20-featured

Tourism operators are at the table, but still not sold on a Destination Marketing Fee for the area

Discussions continue around the possibility of establishing a Tourism Destination Marketing Program for this area.

The idea is of special interest to municipal representatives given the Town’s limited resources and its recent withdrawal from funding events such as the Ironman. The rationale behind the program is that a portion of the money local businesses earn as a result of events bringing an influx of visitors to the area would go back into a pool to help sustain such events.

Meetings facilitated by Huntsville Mayor Scott Aitchison have been quietly taking place to try and rally support from the business community. Admittedly, the two meetings that have taken place to date have merely explored the idea. Those who attended the last meeting at the start of February, heard from a program administrator in Kingston. His message to the group was basically, if you haven’t done it here, why not? said Councillor Bob Stone, who chairs the Town’s Economic Development Committee and has been an active participant at the meetings. He said the last meeting was held at Partners Hall and there were approximately 15 to 20 representatives from area hotels and motels as well as some restaurants.

Stone said when the Town withdrew its financial support for hosting the Ironman, there was significant push-back from some businesses.

“Some specific hotels were quite upset. They didn’t know it was coming and didn’t have an opportunity to put money forward to help keep it because they did very well during that (event),” he said of the Ironman.

That was a shining example as to the type of event that they could take this money and use to increase their own sales, which would also benefit everyone else in Huntsville.Councillor Bob Stone

Concerns around who would administer the money and whether those who don’t buy into the program would benefit from those who do, are still being ironed out.

John Chipman, representing Best Western Hotels, attended at least one of the meetings and said while he’s willing to listen he’s not buying into the program yet.

“I’m all for marketing, I’m all for maybe this type of approach, but everyone has to agree to it,” he said, adding that there are still many questions that need to be answered such as where the money will go, how it will be collected, and who it will impact. “I think it has a long ways to go. Sell me on it,” he said.

In terms of who would administer the program, Stone said it should be an independent body.

“I think there should be a new organization created. I think the Chamber should be at the table, the Town should be at the table and certainly the hotels, they want to be at the table,” he said.

Huntsville Lake of Bays Chamber of Commerce General Manager Kelly Haywood was at the meetings. Asked who attended, off the top of her head she listed Hidden Valley Resort, Comfort Inn, Holiday Inn, Best Western, Huntsville Inn, Clyffe House, Rodeway Inn, Econo Lodge, Rainbow Inn, and Sunset Inn, among others.

Haywood noted that while there are some stakeholders who are at least open to the idea behind the program, not everyone seems to be buying into it.

She said it could start with a small number of businesses and ultimately it would be those businesses that would decide where the funds go. “So you know it might start small or it might not start at all, I mean we’re not there yet,” she said.

The Chamber is also currently working on an initiative which will ask businesses to contribute to building a pool of funds to market the community. “So that’s maybe a model they’ll prefer, but we’re doing that now because we need to market now. The DMF (Destination Marketing Fee), if it happens, we would probably go to them to ask for marketing dollars, but that’s coming down the pike within a month,” she said of the Chamber’s program. The Town has agreed to match up to $25,000 of anything the businesses contribute toward the Chamber’s initiative. If there’s no contribution from the business community, the Chamber’s initiative will not move forward, said Haywood.

In terms of other marketing agencies such as Muskoka Tourism and Explorers’ Edge looking for funds from the same pool, Haywood said the markets they go after are very different.

“We’re going for Ontario and very specific niche markets and we’re only marketing Huntsville and Lake of Bays,” she said, adding that others are marketing a much bigger brand.

If a Tourism Destination Marketing Program does materialize here, she said the Chamber would likely then approach the ‘holders of the purse’ and offer its services to market the program.

I think the municipality is just saying we need the business community to pitch in because they’re the ones that are going to benefit the most.Huntsville Lake of Bays Chamber of Commerce General Manager Kelly Haywood

Steve Carr, representing Comfort Inn and the Huntsville Lake of Bays Hotel and Restaurant Association, reiterated that talks are ongoing. “I think there’s some interest, whether there’s enough interest in order to make it work, that’s the only issue that we’re still working through right now at this stage.”

Proponents are expected to come up with a more cohesive plan to present at a future meeting to get a better sense of who might be interested in supporting the program here. If it materializes, it would be the first of its kind in Muskoka.

Stone said he’s hopeful.

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3 Comments

  1. Gord Bell says:

    There is a class action lawsuit has been launched by the Merchant Law Group against Canadian Hotels, not just Toronto, charging a DMF or DMP. Here’s a link to the March 23 Global News report that Dave Scott refers to. https://ca.finance.yahoo.com/video/class-action-lawsuit-targets-sneaky-221919901.html?nhp=1

  2. Hugh Holland says:

    Destination Marketing Fees are usually not applied to facilities with a small number of rooms or buildings to rent. As in all things, we should not look at the DMF in isolation, but look at it in comparison to other alternatives including doing nothing.

  3. Dave Scott says:

    On Global News tonight , March 23, there was a report on the DMF. One businessman in Toronto is apparently going to launch a court challenge to the DMF.
    One of his arguments is that the fee, while supposedly voluntary, is never presented to guests as such.
    My main argument against it is that with my weekly rentals , assuming a 2% fee, ( the percentage varies across North America) the weekly DMF would be $57.80 on my largest 5-bedroom cottage.
    My second reason for opposing it is that there are far more businesses than hotels and resorts benefitting from tourism in Muskoka; however, the focus seems to be on hotels and resorts collecting it.