Hoteliers to collect 3% room levy

File photo

Daniel Laliberte, president of the Ottawa Gatineau Hotel Association.

Published on September 4, 2012

Elizabeth Howell

Restoring destination marketing fee to raise up to $8.5M for Ottawa Tourism

Most major local hotels will soon revive a three-per-cent room levy, a move expected to generate millions of marketing dollars for Ottawa Tourism.

The new destination marketing fee also establishes two tiers of hotels in the eyes of Ottawa Tourism. The agency will now exclude from its marketing activities any hospitality facilities that are not collecting the levy.

Forty-three of the 49 members of the Ottawa Gatineau Hotel Association recently pledged to participate in the DMF program, which is slated to start Oct. 1 and is expected to raise $8 million to $8.5 million for Ottawa Tourism, according to Daniel Laliberté, OGHA president.

Two hotels in Prescott-Russell will also collect the fee, as will Carleton University, the University of Ottawa and Algonquin College for the post-secondary institutions’ summertime stays.

“It’s great for Ottawa Tourism (and) great for the hotels,” said Mr. Laliberté.

Ottawa Tourism, which focuses on attracting visitors, tours and conventions to the region, has been in financial flux since a previous iteration of the DMF ended in 2010 with the implementation of Ontario’s harmonized sales tax.

After providing bridge funding last year and in 2011, the province is expected to contribute $3.56 million to Ottawa Tourism in 2013, less than half of what’s expected to be raised by the city’s hoteliers, according to Mr. Laliberté.

He noted that, under the agreement between Ottawa Tourism and the hoteliers association, a committee will be formed made up of representatives of DMF participants. There will be four regions represented – west, east, central and suburban. Each of the regions will elect one member to be part of that committee.

These members will approve the expenditure of the funds, and Ottawa Tourism will spend the money according to its priorities, Mr. Laliberté added.

While not privy to Ottawa Tourism’s specific plans for 2013, Mr. Laliberté said he expects a continued focus on marketing the city to Montreal and Toronto, two traditionally competitive markets for Ottawa.

In May, when the DMF was first proposed publicly, Mayor Jim Watson said the city was working on a “bid more, win more, host more” approach to bring larger events to Ottawa.

He added he wants the city to “own” Canada’s 150th anniversary celebrations in 2017, similar to Vancouver and the 2010 Olympics.

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Deadon: - September 4, 2012 at 22:12:59

While I don't have the numbers on my tips, I tend to agree with Watchdog. I am not sure if Skeptik is actually supporting this move, but this indeed is a move that is going to further discourage tourism in the city. A lot of people leave Ottawa flat out of their touristic map (they would much rather go to Vancouver, Montreal, TO) and rather than providing them incentive to be here (of which there is very few), this move takes things in the opposite direction. Yes, the hoteliers and Ottawa tourism wins but the guests loose and they are not going to like and it will show in the eventual numbers. We pay higher HST in Ontario as we have no option but find ways of paying government workers salaries that are way beyond their capabilities. But, the guests do have an option and they will choose it.

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Skeptik: - September 4, 2012 at 11:24:15

Watchdog obviously hasn't got a clue what he's talking about. Tourism in Ottawa fall even lower? Local hotels have the highest occupancy levels and year over year growth in revenue per available room of any hotel community in Canada. How about basing your comments on fact rather than making up fiction as you go?

Watchdog: - September 4, 2012 at 09:42:00

Now I have heard yet another boneheaded stunt of adding yet another tax on top of the HST and other services when you come to Ottawa as a guest. Let Watchdog tell you what is going to happen. Our tourism will fall even lower and guests will go somewhere else. There is nothing compelling in Ottawa to see except mabe the changing of the guard.. yawnnn, Parliament Hill, Yawn... and so forth. Ottawa needs to attract people not drive them away. Wake up call for you Dan... marketing is done on line and word of mouth and who cares if you will not let those hotels who do not collect this TAX participate in your sorry marketing schemes in yes both official languges.. News flash Dan, how many guests that came to Ottawa last year spoke even on syllable of French.. I saw many other ethinic people in Ottawa last year. This is going to be yet another disaster, and pray tell why are the Universities particpating in this????