In mid-October 2000, during the committee's review of the 2001-2004 business plans, the Department of Finance included as a key strategy, the implementation of a hotel room tax. The committee report (TD 102-14(3)) noted:
"The committee remarked that hotel tax revenues have already been incorporated into the government's revenue and expenditure projections even though the tax has not yet received legislative approval. Committee members noted that tax legislation should receive the same level of stakeholder consultation and committee consideration as other legislation. A Member observed that the government might be fast-tracking the proposed hotel tax without due process. According to the department, the hotel tax is expected to generate about $1.3 million. Administration fees are expected to be $150,000." (p.12)
Tabled document, NWT Tourism - The 2006 Challenge, Towards a Tourism Strategy (TD 50-14(3)), referred to as a "rolling draft", noted at p.14:
"Government and the tourism industry have also discussed ways to increase funding. A new hotel accommodation tax is currently proposed."
On November 8, 2000, the Minister of Finance indicated during second reading of Bill 13 that more money was required to improve the tourism industry. The Minister noted that, while worldwide tourism is growing, there is every indication that the situation in the Northwest Territories is not keeping up with the pace. During debate on the principle of the bill the Minister gave some indication that the revenues collected from this tax would be put towards tourism strategies in an attempt to boost northern tourism.
Mr. Speaker, at this time I request the deputy chair, Ms. Lee, continue with the report. Thank you.