{"id":55919,"date":"2018-09-28T16:53:24","date_gmt":"2018-09-28T20:53:24","guid":{"rendered":"https:\/\/huntsville.dopperonline.ca\/?p=55919"},"modified":"2018-09-29T08:54:10","modified_gmt":"2018-09-29T12:54:10","slug":"municipal-accommodation-tax-greatest-economic-development-tool-huntsville-has-seen-in-decades","status":"publish","type":"post","link":"https:\/\/doppleronline.ca\/huntsville\/municipal-accommodation-tax-greatest-economic-development-tool-huntsville-has-seen-in-decades\/","title":{"rendered":"Municipal Accommodation Tax ‘greatest economic development tool Huntsville has seen in decades’"},"content":{"rendered":"

 <\/p>\n

If projections are realized, Huntsville’s proposed Municipal Accommodation Tax (MAT) will give Huntsville a big advantage for promoting tourism to this area.<\/p>\n

Town staff and members of the Huntsville Hotel and Motel Association presented an early model for collection and distribution of the proposed tax to Huntsville’s General Committee on September 26.<\/p>\n

<\/broadstreet-zone><\/strong><\/div>\n

In his report to committee, Scott Ovell, the Town’s Economic Development Coordinator, outlined what the recommended model would look like: local accommodators would collect a four per cent MAT, 70 per cent of which would be given to a separate tourism entity with the Town retaining 30 per cent. The tax would likely apply to the room portion of revenue only, and for the time-being would apply only to area hotels and motels. Short-term vacation rental properties, like those listed on Airbnb, would be added at a later date. Small housekeeping and American Plan (all-inclusive) resorts like Clyffe House and Cedar Grove Lodge would be exempt from the tax at least until similar resorts in Muskoka’s other municipalities are subject to a similar tax.<\/p>\n

Ovell said that there are many factors that would affect how much revenue the tax generates, but early estimates are a total of $750,000 per year.<\/p>\n

The tourism entity, which must be non-profit under provincial legislation, would use the funds to promote tourism and would have “autonomous decision making abilities related to setting budgets, prioritizing objectives and funding allocations,” according to the report.<\/p>\n

The Town would also use its portion of the funds for tourism and economic development, which could include a wide range of initiatives like community branding, wayfinding signage, active transportation, marketing for workforce attraction, experience enhancements at Muskoka Heritage Place, and sporting and special events. The tourism and marketing services currently provided by the Town, which in 2018 amounted to $142,000\u2014$82,000 for marketing, events and tourism services through the Huntsville\/Lake of Bays Chamber of Commerce, a $25,000 licensing fee for the Ironman 70.3, $30,000 for the Ontario 55+ Winter Games, and $5,000 fee for service to the Port Sydney\/Utterson Area Chamber of Commerce\u2014could be paid for using MAT revenue as well. In future, events like the Ironman 70.3 could apply to the tourism entity instead of the Town for funding.<\/p>\n

“We have local organizations that are doing really great things with limited resources and have put us on the map,” said Ovell. “What we started talking about was coming up with a made-in-Huntsville solution.” He thanked the Huntsville Hotel and Motel Association, the Huntsville\/Lake of Bays Chamber of Commerce, the Downtown Huntsville BIA, and Town staff for their help through the process and in “coming up with a solution that I think is innovative and ultimately works for Huntsville.”<\/p>\n

The next step would be creation of a working group to hammer out details like terms of reference for the tourism entity, review of a transfer payment agreement, and recommendations for the composition of its board, at the same time as the Town of Huntsville prepares a bylaw. The working group would comprise one representative from each of the Huntsville\/Lake of Bays Chamber of Commerce, the Downtown Huntsville BIA, Huntsville Town Council (mayor), the Huntsville Hotel and Motel Association (Jesse Hamilton), and Explorers’ Edge along with support from the Town’s Director of Corporate Services, Director of Development Services, and Economic Development Officer.<\/p>\n

The targeted implementation date for the tax is April 1, 2019.<\/p>\n

<\/broadstreet-zone><\/strong><\/div>\n

Jesse Hamilton, General Manager at Deerhurst Resort, speaking on behalf of the Huntsville Hotel and Motel Association said that hotel operators appreciated the opportunity to be part of the process, “and that our voice was heard not solely as a conduit to a tax but as a means to making sure that that tax was spent in a way that is most impactful positively in driving tourists to the town of Huntsville.”<\/p>\n

Hamilton acknowledged that local accommodators will incur costs to collect the tax, making it a sensitive topic that resulted in spirited debate, but “that is something that the hotel and motel operators are willing to take on for what we see as being the greater good of the town. It also can drive more guests not just through our doors but into restaurants and into the retail space.”<\/p>\n

Committee members appeared to be excited about the idea. Councillor Bob Stone said, “This is the greatest economic development tool Huntsville has seen in decades.”<\/p>\n

Mayor Scott Aitchison added, “It\u2019s important for us to reflect on what we are about to do. We are about to make one of the biggest investments in tourism we\u2019ve ever made in this community, and it will be an ongoing thing and it won\u2019t come off the backs of the property taxpayer… This is a message that we are very serious about tourism, about economic development and we\u2019re going to make some major investments in growing the economic development opportunities for tourism operators in this community.” He congratulated everyone involved for a job well done.<\/p>\n

Councillor Jonathan Wiebe wondered why Muskoka Tourism was excluded from the working group while Explorers’ Edge, the public face of Regional Tourism Organization 12 which encompasses Muskoka, Parry Sound, Almaguin Highlands and Algonquin Park, was included.<\/p>\n

Ovell replied that there is flexibility in who is involved, but that Explorers’ Edge was included because “I think it was only about eight years ago that they were formed so a lot of this is talking to them and having the expertise of the things that they went through when they started down the road, particularly terms of reference and getting the organization set up properly.”<\/p>\n

Councillor Det Schumacher also noted that there was no representation from the resort owner community, to which Ovell said that the mandate of the working group would be to get the organization set up while the composition of the board, which the Huntsville Hotel and Motel Association has suggested should be at least 51 per cent hoteliers, would be addressed through the bylaw and terms of reference.<\/p>\n

In a follow-up conversation with Doppler, Huntsville\/Lake of Bays Chamber of Commerce executive director, Kelly Haywood, said that she hoped to be included in the working group, and that she would be advocating for a different model for housekeeping resorts, as was suggested.<\/p>\n

“I am really pleased that the municipality and the accommodations sector have come to an agreement to develop the Municipal Accommodation Tax. The work of the chamber with respect to tourism services will continue and I look forward to working with this new entity to further the achievements that we have made… a $750,000 budget annually is a game-changer,” said Haywood. “I am just really happy to see more invested in tourism in our community.”<\/p>\n

General Committee unanimously approved the recommendation to create a Municipal Accommodation Tax bylaw and establish an associated working group. The resolution will go before council at its next meeting for ratification.<\/p>\n

See a copy of the full report here<\/a> (PDF)<\/span>.<\/p>\n

Don\u2019t miss out on Doppler! Sign up for our free newsletter here<\/u>.<\/a><\/strong><\/p>\n

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If projections are realized, Huntsville’s proposed Municipal Accommodation Tax (MAT) will give Huntsville a big advantage for promoting tourism to this area. 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