TIMMINS - A local hotelier has a few suggestions before the city hikes its hotel tax.
Cedar Meadows Resort and Spa president Richard Lafleur penned a letter to the city about the proposed increase to the municipal accommodation tax (MAT) from four per cent to six per cent.
His letter is on tonight's (Jan. 14) Timmins council agenda. It's in response to a December decision of members to defer approving a MAT hike.
While he sees the benefit of the tax for local tourism, he says it needs to "be managed with greater transparency, accountability and equity."
Lafleur raises nine concerns with the current system and recommends changes.
His concerns are:
- Lack of verification for 'heads in beds'. He is asking for all MAT recipients to submit detail post-event reports including the hotel data tied to the event, data proving most attendees needed overnight accommodations, and financial reports showing the direct impact of the funding on tourism-related outcomes.
- Funding school activities. He wants the MAT eligibility restricted to activities that directly align with increasing tourism in ways that's verified through measurable outcomes.
- Unevenly distributing money among associations. He suggests creating clear, equitable criteria for the cash, and using a transparent, competitive application process so that groups have fair access to the fund.
- The city "double dipping" by charging groups for city services, then using the MAT cash to pay the fee. He's asking the city to reassess the practice to make sure the money isn't "indirectly funnelled back into municipal reserves" and for a clear policy on facility charges.
- Not having a transparent allocation formula. He wants the funding formula to be publicly disclosed, and for stakeholders to review its fairness and applicability.
- Misusing funds for long-standing events. He says funding should be limited to events and initiatives that are showing "measurable growth" in tourism, especially for overnight stays.
- Lack of accountability measures. He suggests partnering with local hotels to create event-specific booking codes so there is accurate tracking of the data, and for annual recipient reports to be published.
- Opposition to the MAT. He says there shouldn't be an increase until there are "comprehensive accountability measures" in place, and consultations with stakeholders.
- Annual reporting and transparency. He wants an annual recipient list and impact report publicly published annually.
The city has been collecting a four per cent tax on short-term stays at hotels and motels since 2019. While the bylaw also applies to other short-term accommodations such as Air BnBs and VRBOs, the city hasn't had the software to track, and ultimately collect, the cash from them.
While there isn't a formal hotel association locally, at the December meeting, Mayor Michelle Boileau said that hotel representatives sit on the Timmins Economic Development Corporation's MAT committee, which hands out half of the money collected for tourism activities. She said the increase was brought to the hotel members on the committee.
Read Lafleur's full letter here.
The council meeting starts at 6 p.m. at city hall. Watch it live online here.
