Thank you, Mr. Chair. The Member is correct; we have been involved with this file for a number of years and it’s not moving as fast
as everyone would like. We determined that there are four basic approaches to create a regime where revenues from a tariff on hotel rooms could be collected. Taxes could be created in taxation legislation specific to hotel accommodations levied by the territory with some or all of the revenues remitted back to a municipality either by legislation or policy. Secondly, taxation legislation can be created by a territory for the benefit of municipalities. The third option is a designation marketing fee where hotel operators in the community can voluntarily collect fees and pull them together for a specific purpose.
As recently as last summer or last fall, we did approach the Yellowknife Hotel Association and offered the destination marketing fee as an option to pursue so we didn’t have to go through the legislative route. That was rejected as an option. The Yellowknife Hotel Association has been adamant they want to have this area regulated. So, we are still doing some further research in this area.
Initially we intended to consult with hotel operators and community governments but have deferred this consultation to the beginning of the 18th Legislative
Assembly due to our other legislative priorities that were mentioned earlier.
One thing we are willing to do, and for consideration, is to go back to the Yellowknife Hotel Association and make that offer again to seriously look at the designation marketing fee as a valuable option. We are willing to do that to try to move this file forward. If not, it would certainly be a priority when we do municipal legislation under the 18th Assembly. Thank you, Mr. Chair.