ADMINISTRATIVE REPORT

RTS No. 03184
CC File No. 6008

Council: March 11, 2003

TO:

Vancouver City Council

FROM:

Deputy City Manager

SUBJECT:

Tourism Vancouver - Interim Payments of 2% Hotel Tax - 2003

 

RECOMMENDATION

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.

In nine of the last ten years, Council has authorized release of funds prior to approval of Tourism Vancouver's Business Plan. In 2002 no approval was required for interim payments due to the more timely approval of the 2002 business plan.

PURPOSE

This report seeks approval for the release of the 2003 2% Hotel Tax proceeds during an interim period of transition, and in addition, reports back on recommendations approved by Council in 2002 regarding the City_s role and responsibility for supporting funding for the Vancouver Convention and Exhibition Centre Expansion through the use of the 2% Hotel Tax.

BACKGROUND

In 1987, the Hotel Room Tax Act legislation of the Province of British Columbia enabled the collection of a tax of up to two percent on sales of accommodation in designated areas within the Province. The Hotel Tax is intended to assist municipalities and regional districts in financing and operating new tourist facilities and with tourism promotion.

Since 1988, the City of Vancouver has held the authority to receive from the Province the 2% tax on hotel revenues, and holds the responsibility to ensure the hotel tax revenues are used in accordance with the Provincial legislation and the City_s by-law. These state the revenues are to be utilized for _tourism promotions, projects and programs_. Since 1988, the City of Vancouver has allocated these revenues to Tourism Vancouver for these purposes.

On August 14, 2002 the Standing Committee of Council on Planning and Environment discussed the Industry funding contribution for the Vancouver Convention and Exhibition Centre Expansion. The following motions were approved:

CONFIRMATION FROM THE PROVINCE

The Deputy City Manager has now received written confirmation of the Province_s intentions with respect to the Additional Hotel Room Tax collected within the City of Vancouver under section 3.3 of the Hotel Room Tax Act.

An extract from the letter dated January 15, 2003 from Ken Dobell, Deputy Minister is as follows;

CONCLUSION

The City now has written confirmation of the Province_s intentions with respect to the 2% Hotel Tax. Subject to Cabinet ratification, City Council_s requirements, as outlined in Council resolution of August 14, 2002, have been met. It is therefore requested that Council approve the continued flow of funds to Tourism Vancouver on an interim basis pending implementation of the proposed changes.

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