ADMINISTRATIVE REPORT

Date: December 18, 2000
Author/Local: B.Pearce/6276

RTS No. 01810

CC File No. 6008

Council: January 9, 2001

TO:	Vancouver City Council
FROM:	General Manager of Corporate Services
SUBJECT:	Tourism Vancouver - Interim Payments of 2% Hotel Tax - 2001

RECOMMENDATION

THAT Council authorize the remittance of the first three months of the 2% Hotel Tax revenues for 2001 to Tourism Vancouver, the amounts of each remittance not to exceed actual receipts from the Province of the 2% tax, in advance of Council's consideration of Tourism Vancouver's 2001 Business Plan.

POLICY

On an annual basis, City Council reviews the business plan of Tourism Vancouver and decides on the allocation of the 2% Hotel Tax revenues.

For the past nine years, Council has authorized release of funds prior to approval of Tourism Vancouver's Business Plan.

PURPOSE

This report seeks approval for early release of the first three months of the 2001 2% Hotel Tax proceeds, in accordance with prior years' policy.

INTERIM RELEASE OF FUNDS FOR 2001

In accordance with Council policy, Tourism Vancouver will submit a 2001 Business Plan and budget for Council's review. Tourism Vancouver also reports to Council annually on highlights of the tourism industry in the Greater Vancouver region. Prior years' experience has shown that it will not be possible to review and bring the 2001 Business Plan before Council before March. In order to properly plan and launch the Tourism programs and projects planned for 2001, various up-front commitments are necessary, which must befunded prior to the review of the 2001 Business Plan. Tourism Vancouver has, therefore, requested an advance on 2001 operations until its 2001 Business Plan has been approved by Council.

The General Manager, Corporate Services believes an appropriate advance would be to forward the first three months of 2% Hotel Tax proceeds applicable to 2001 as and when received from the Province. This would be approximately $450,000 per month. Council has recognized this funding problem in the past, and has authorized the interim release of funds in prior years. Release of these funds does not represent preapproval of the release of the full 2% Hotel Tax revenues.

CONCLUSION

The annual review of the Tourism Vancouver Business Plan will take place in March of 2001. However, Tourism Vancouver needs funding to sustain operations for the first three months of 2001. In the past, Council has recognized this problem and has authorized interim releases of the year's Hotel Tax receipts to bridge this gap.

The General Manager, Corporate Services recommends that the 2% Hotel Tax revenues applicable to the first three months of the 2001 business year again be released to Tourism Vancouver in order to accommodate their up-front commitments for the 2001 business year.

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(c) 1998 City of Vancouver