Cavendish tourism industry looking into levy as way to boost North Shore businesses
The 3% fee on customers' bills would go into a fund to help promote the region
Tourism Cavendish Beach wants to take a close look at a potential tourism accommodation levy in the Resort Municipality, with some tourism operators saying it could help them expand their season on P.E.I.'s North Shore.
The Municipal Government Act says a bylaw is needed to enact such a levy and all money collected that way must be spent on tourism. The cities of Charlottetown and Summerside already have bylaws in place that allow places like hotels and cottages to collect the three per cent levy from customers.
Kenny Singleton owns Bosom Buddies Resort in Cavendish, which has been operating since 1988 and is open from May until November.
He said he's all for a levy in the Resort Municipality of Stanley Bridge, Hope River, Bayview, Cavendish and North Rustico — known in short form as the Resort Municipality.
"We really want to extend our seasons here, our summer, and we need consistent marketing dollars. It is a very common thing that's done in other areas," he said.
"We need to be always working one year ahead, and, like, how do we keep promoting what we have?" he said. "We have beautiful properties all across the Island and especially on the North Shore."
In the last few years, Singleton's businesses has added more amenities, including an adult-only area with a hot tub and a sauna, two pickleball courts, and a meeting space to bring in groups.
"Our high season — July, August, you know — it's a given we're full, but [to] make these businesses thrive, we need to really get more guests here," Singleton said.
I'd actually have a bigger fear that if we didn't implement a levy, we potentially will be outspent by competing jurisdictions and maybe lose out on visitation for the long term.— Adam Lowther, owner of Fairway Cottages
"And it's good for everyone. It's good for the entire province."
About two kilometres away is Fairway Cottages, owned by Adam Lowther, who supports a potential accommodation levy.
"As an operator, I'm very bullish on an accommodation levy. I think it's only going to bring good things to the community. I think for an association, it's difficult to truly move the needle without sustainable funding year in, year out," he said.
Stable funding would let Lowther feel comfortable to plan three, five, even 10 years into the future.
"I'd actually have a bigger fear that if we didn't implement a levy, we potentially will be outspent by competing jurisdictions and maybe lose out on visitation for the long term," said Lowther.
Both owners said they weren't concerned about customers objecting to paying an extra three per cent, since this kind of measure is fairly standard with accommodations around the world.
"I think a levy is a step in the right direction going forward. And I'd love to see the association continue seeing what other operators want to do and consult everybody," Lowther said. "Hopefully we can have something implemented in the next couple of years."
Tourism industry wants study
The municipality would have to pass a bylaw to put the levy in place. Officials have said there will be no tourism levy this year.
Mayor Lee Brammer said the letter council received from Tourism Cavendish Beach asking to consider a levy on accommodation for marketing was read at council's May meeting. He said they decided to review the letter and discuss it further at the June council meeting.
After Tourism Cavendish Beach held its annual general meeting last week, board chair Ben Jelley said the group wants to explore whether a levy would be a way to help fund activities and encourage growth in the region.
"We've asked the Resort Municipality to take a look at the issue with us. We think together we can study it because they're the ones that have that power to implement it, and we're the regional tourism association here," he said.
Jelley said having an exploratory process in conjunction with the municipality would allow for all tourism operators in the area to have their voices heard.