PEI

Cavendish tourism industry looking into levy as way to boost North Shore businesses

Tourism Cavendish Beach is hoping the Resort Municipality will join them in doing a study to see if a 3% accommodation levy could work on P.E.I.'s North Shore. Some tourism operators say the money would help with marketing and expand their shoulder season.

The 3% fee on customers' bills would go into a fund to help promote the region

Two men stand smiling in front of their respective workplaces.
Both Bosom Buddies Resort owner Kenny Singleton, left, and Fairway Cottages owner Adam Lowther would like the Resort Municipality to adopt an accommodation levy bylaw. (Stacey Janzer/CBC)

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."

Staying at a Cavendish vacation spot could soon cost 3% more, if an accommodation levy is adopted

2 days ago
Duration 2:12
The tourism association covering the Cavendish area on P.E.I.'s North Shore wants to do a study in conjunction with the Resort Municipality on whether an accommodation levy could work there. Some tourism operators say the consistent extra funding would let them market to expand the shoulder season. CBC's Stacey Janzer has the story.

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.

An adult-only space with two hammocks, a hot tub and a sauna.
Bosom Buddies recently added an adult-only section with two hammocks, a hot tub, a sauna, and a seating area near the pool. (Stacey Janzer/CBC)

"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.

A group of men are playing tossing game outside of a large cabin.
The owner of Fairway Cottages said he worries that if a levy isn't implemented, the area could be outspent by competing jurisdictions like Charlottetown and Summerside. (Stacey Janzer/CBC)

"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.

Man smiles while stands in front of the Cavendish Visitor Information Centre.
Ben Jelley, who chairs the board of Tourism Cavendish Beach, is hoping the Resort Municipality will help it work on a study to see if an accommodation levy could work there. (Stacey Janzer/CBC)

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.