Thank you, Mr. Speaker.
The Public Review of Bill 18
To commence consultation on Bill 18, the standing committee invited input on the bill from 99 local hotel and bed and breakfast (B&B) operators offering tourist accommodations in the six tax-based municipalities. This consultation list was kindly provided by the Department of Municipal and Community Affairs, who used the same list when consulting on the development of the bill. The committee also sent letters seeking input from the six impacted municipal councils.
Committee held a public hearing on Bill 18 in Yellowknife on September 19, 2018. At that hearing, committee heard a presentation from the Yellowknife Chamber of Commerce, provided by Mr. Kyle Thomas, Vice President. Committee also received a presentation from the City of Yellowknife, represented by Mr. Mark Heyck, Mayor; Ms. Sheila Bassi-Kellett, City Administrator; and Ms. Kerry Penney, Director of Policy, Communications and Economic Development. Committee noted that Ms. Shauna Morgan and Mr. Julian Morse, both councillors with the City of Yellowknife, were also in attendance in the audience. Finally, committee received a presentation from Mr. Karl H. Schaefers and Mr. Dan Dupuis, representing Mr. Ed Romanowski, president and chief operating officer of the Explorer Hotel. Committee thanks everyone who appeared before the committee and provided input on Bill 18 that evening.
Because of planned consultation travel on Bills 8 and 20, committee had already made arrangements to travel to three of the six tax-based municipalities. Hence, committee extended invitations to the municipal councils in these communities to discuss Bill 18. A meeting scheduled with the town of Hay River in mid-August was, unfortunately, cancelled due to unforeseen circumstances. However, on October 2, 2018, committee had the opportunity to meet with Mr. Jim McDonald, mayor of Inuvik; Mr. Joe Lavoie, assistant deputy mayor; and Ms. Natasha Kulikowski and Mr. Clarence Wood, both councillors. Committee thanks these Town of Inuvik representatives for their time and input.
Finally, committee received written submissions from the following:
- The Explorer Hotel;
- The Town of Fort Smith;
- The Yellowknife Chamber of Commerce;
- The City of Yellowknife;
- Days Inn and Suites, Yellowknife; and
- Embleton House Bed and Breakfast.
The committee takes this opportunity to thank everyone who provided written submissions. Copies of these submissions are appended to this report.
What We Heard
Overall, committee heard mixed support for Bill 18. Outside of Yellowknife, it is largely seen as a "Yellowknife" bill. Both Inuvik and Fort Smith expressed the view that, for smaller tax-based municipalities, any revenues the "hotel tax" might yield would be offset by the costs of administration.
Aside from Yellowknife, none of the five remaining tax-based municipalities indicated that they would be interested, at this time, in exercising the new authorities provided by the bill. There was, however, general agreement that the City of Yellowknife should have the right to exercise these new authorities if it chooses.
Tourist Accommodation Tax
Both the Yellowknife Chamber of Commerce and the City of Yellowknife expressed support for the bill. Mr. Kyle Thomas, vice president of the Yellowknife Chamber of Commerce, noted that the chamber would like to see the tax rate reduced from 4 percent to 3 percent. The City of Yellowknife raised concerns about the lengthy list of exclusions, which would reduce the total amount of revenue collected and make it difficult for front desk staff, who would be required to determine a person's reason for travel and whether or not an exemption applies.
Both the Yellowknife Days Inn and Suites and the Explorer Hotel offered conditional support for the bill. The support of the Explorer Hotel was based on the following conditions:
- A 3 percent levy on the daily room rate;
- Applicability to all accommodation properties;
- No exemptions;
- Industry oversight of fund management; and
- No spending on convention or meeting facilities or on destination or visitor services, events or facilities.
The Yellowknife Days Inn and Suites expressed the view that "the draft as written falls short of the intended purpose of the levy," noting concerns about the exemptions in the bill and stressing that Section 70.3(1) must clarify that the levy's primary purpose is to promote Yellowknife.
Both the Town of Fort Smith and Embleton House B&B are not supportive of the bill. In correspondence to the committee, Fort Smith Mayor Ms. Lynn Napier-Buckley said that, "When this change was first proposed by MACA, the Town of Fort Smith requested an impact assessment to be performed, which we have not received," noting that, "while the choice to provide this program is the decision of the municipality, it is a concern that this revision will be closely followed by reductions to territorial programs." She also asked, "What will the GNWT provide to ensure equity for the smaller communities in promoting and selling tourism outside of Yellowknife with this change?"
In explaining her lack of support for the bill, Ms. Faith Embleton of Embleton House B&B emphasized that, with the number of unlicensed accommodations popping up online, now is not the time to implement a tourism levy, but to work to ensure that unlicensed operators meet appropriate standards, noting that, "When they arrive, travellers often face substandard accommodation and sometimes no accommodation at all, leaving them out on the street when things get busy."
I would now like to turn it over to the Member for Deh Cho. Thank you, Mr. Speaker.