Dear Editor,
There is currently a financial issue at hand in the city that I am thoroughly dismayed with as it demonstrates a complete show of indifference towards community involvement. The issue is the lack of participation in the municipal regional district tax (MRDT) by hotels in New Westminster.
The MRDT is a two-per-cent tax on hotel rooms. More than three years ago, city council approved the collection of a room tax by the hotels. The revenue from the room tax is intended to fund a portion of Tourism New Westminster’s budget.
The room tax has not been implemented by city hotels, and therefore the city has had to make two $40,000 (2014 and 2015) grants to fund Tourism New Westminster and will have to do so again in 2016 if this tax is not implemented.
Projecting these dollar grants into the future, in another 10 years, the City of New Westminster will have spent $480,0000 of your tax dollars. This is very close to half-a-million dollars. This is money that could be utilized in other areas of the city.
The MRDT is a tax is paid by visitors staying at hotels.
New Westminster Tourism has been promoting the hotels, and these establishments have been reaping the financial benefits.
We now have the Anvil Centre that recently opened, and this is bringing all kinds of meeting groups and conventions to the Royal City. Again, the hotel establishments will be reaping the financial benefits.
I understand that there has been contact by Tourism New Westminster, but to this date there has been no commitment by the hotels to implement the two-per-cent room tax. In fact, there has been a reluctance to participate.
This hotel room tax on the purchase of accommodation is intended to assist municipalities, regional districts and prescribed eligible entities to fund tourism marketing, programs and projects, including the financing and operation of new tourism facilities.
The former mayor of New Westminster, Mr. Wayne Wright, provided a letter of support for the MRDT and commitment to Tourism New Westminster in 2014.
The tax is now three years overdue from the day of being introduced.
There are currently in the vicinity of 51 municipalities, districts, regions and cities that have the MRDT implemented in British Columbia, and I really feel that the City of New Westminster is being unfairly treated by the hotels in the implementation of the MRDT for whatever reasons.
This has been going on for three years. When will New Westminster hotels come on board with the MRDT?
The hotels will continue to reap the financial benefits from Tourism New Westminster, such as free advertising, conferences at the Anvil Centre and local community support.
I point to the unfair financial advantage, that other municipalities, regions and districts that have implemented the MRDT, have over the City of New Westminster.
It is time for the hotels of New Westminster to become totally good corporate citizens and provide, through the collection of the MRDT, the support needed for Tourism New Westminster.
Frank Benoit, New Westminster
