Time to raise tax on tourists

Dear Editor:

I have long argued that Kelowna council is offloading the real costs of tourism onto taxpayers.

Council continues to ignore recommendations to increase its hotel room tax by two per cent to raise $2 million annually from tourists. This funding is needed to build new parks to accommodate Kelowna’s urban and tourist growth. This tax should apply to all short-term tourist accommodations, including hotels, motels, apartment hotels, campgrounds and Airbnb rentals.

In 2016, Tourism Kelowna reported more than 1.9 million visitors came to the Kelowna area and spent $337 million. Their goal is to welcome three million visitors annually by 2021.

Yet, tourist spending is not earmarked to build new parks and beaches. A 2017 city report shows $200 million is needed to build new parks designated in Kelowna’s official community plan and 20-year servicing plan. Included in this backlog is South Pandosy waterfront park, which city residents purchased 30 years ago and have no guarantees it will ever be built.

A 2018 city bylaw review regulating short-term rentals is unclear that revenue will be collected to build new parks.

Despite the fact council supports unrestricted tourism growth, there are no city documents that assess the social, economic and environmental impacts unbridled tourism growth has on taxpayers, renters, beaches, roads, parking, parks, noise, traffic, public safety, insurance rates, air pollution, water quality, water consumption and sewage discharges to the lake. But, three things are abundantly clear. Council exempts charging tourists for parks and other infrastructure they come here to use.

Council wants all city property owners to pay a new two per cent infrastructure levy on their 2018 tax bills.

Council wants its policies to perpetuate a long-standing history of subsidizing the tourism industry.

The new levy will raise $2.66 million annually for new infrastructure that tourists will use, but not pay for. Only 16 per cent of the levy, or $426,000, will go to build new parks, which falls far short of the $10 million needed annually.

The levy’s remaining $2.23 million will go to fund other infrastructure that tourists use and do not pay for, including parks, roads, sewage treatment and water supplies.

A top priority for council candidates in the October election should be tax reduction. An important first step is to eliminate taxpayer subsidies to the tourism industry.

Richard Drinnan Kelowna