City of Kelowna to extend tourist tax

Tuesday, October 26, 2021

The staffs of City of Kelowna are hopeful that council will give the green light to a five-year renewal of a hotel tax. This will be used to finance tourism marketing and other projects.

At present, the municipal and regional district tax, pegged at 3 per cent, is gathered from hotel guests and sent to the provincial government.

Then, for destination marketing or for affordable housing initiatives, the city receives 2.8 per cent back, as the province uses 0.02 per cent for its B.C.-wide tourism events program.

Since 2004, the tax has been in effect, and staffs are anticipating that it will be renewed until 2027 when it comes before council on Monday.

The city staff estimates that for next year, the tax will generate $2.63 million, or 85 per cent of pre-COVID revenue levels.

The tax collected by hotels and motels is used to support Tourism Kelowna, as the tax collected by short-term rentals is used for affordable housing initiatives, according to a city staff report.

“Houses currently being built in Kelowna often include a suite for short-term stay rentals,” the report said. “This will increase the number of tourism accommodations without increasing funding for Tourism Kelowna.”

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