Hotel tax adds up for city

There are more people staying in Vernon hotels and motels and that’s boosting the economy

There are more people staying in Vernon hotels and motels and that’s boosting the economy.

The City of Vernon received $535,746 in hotel room tax in 2014, up 22 per cent over 2013. As a result, the two per cent tax on room stays equates to room revenue of $26.8 million being generated by accommodators. This is an increase of $4.9 million.

“We saw new accommodators in the last few years but to see growth of 22 per cent is pretty exceptional,” said Kevin Poole, the city’s economic development manager.

“That’s all dollars back into accommodators’ pockets and hopefully it benefits other businesses.”

In fact, Poole says people who stay at local hotels and motels wind up spending money at restaurants and shops, and exploring various attractions in the area.

The $535,746 in hotel room tax will be used by the city to market Vernon as a tourism destination.

“It means more money to increase our profile in the main markets of the Lower Mainland and Calgary,” said Poole.

Along with traditional means of advertising, such as newspapers, magazines, TV and radio, the city is also emphasizing social media. That strategy includes websites, Facebook and Twitter.

“We want to engage with visitors who want to learn about Vernon,” said Poole.

However, to do all of that is challenging as there’s strong competition from other communities for tourists.

“There are a lot of beautiful places in B.C. and it’s difficult to compete against larger markets but this increase in the budget will help,” said Poole.

The highest-revenue generating months for hotel room tax in 2014 were $89,567 in August, $71,608 in July, $60,983 in June and $46,008 in May.

 

Vernon Morning Star