ADMINISTRATIVE REPORT

Date: March 27, 2001
Author/Local: B.Pearce/6276

RTS No. 01688

CC File No. 6008

Council: April 24, 2001

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

RECOMMENDATION

THAT Council authorize the remittance of the 2001 April to July receipts of the 2% Hotel Tax revenues 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 approval 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 release of the April to July receipts of the 2001 2% Hotel Tax to Tourism Vancouver.

BACKGROUND

On January 11, 2001, Council approved the release of the first three months receipts of the 2% Hotel Tax to Tourism Vancouver. This was done in advance of Council's approval of the Tourism Vancouver's 2001 Business Plan and Budget.

In accordance with Council policy, Tourism Vancouver will submit a 2001 Business Planand budget for Council's approval. Tourism Vancouver also reports to Council annually on highlights of the tourism industry in the Greater Vancouver region. The consideration of the 2001 Business Plan and Budget will take place in June 2001. In order to continue Tourism operations in 2001, financial support from the 2% Hotel Tax is required. Therefore, it is requested that an additional advance on 2001 receipts be approved by Council.

Staff recommend that the April to July 2% Hotel Tax receipts be forwarded to Tourism Vancouver as and when received from the Province. 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 June of 2001. However, Tourism Vancouver needs funding to sustain operations for the months of April to July 2001. In the past, Council has authorized interim releases of the year's Hotel Tax receipts to sustain Tourism Vancouver operations until consideration of the Business Plan and Budget takes place.

Staff recommend that the 2% Hotel Tax revenues applicable to the months of April to July of the 2001 business year be released to Tourism Vancouver in order to accommodate their commitments for the 2001 business year.

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(c) 1998 City of Vancouver