The City of Yellowknife is prepared to impose a four per cent tourist accommodation tax.
It would apply almost anywhere a person pays to stay, namely hotels and Airbnbs. The measure is intended to bring in more money to support the city's tourism industry, explained Kerry Thistle, director of economic development and strategy for the municipality.
"We’re kind of one of the last few remaining places that doesn’t have these types of taxes or levies,” she said.
Coming back from the pandemic, the city reports that tourism is starting to become one of its fastest growing sectors again. The tax would become effective on April 1, 2025, and could potentially generate $1.5 million a year, according to municipal staff. If adopted, it would fall in line with numerous provinces in Canada, which also hover around a four-per-cent levy.
That revenue would go towards what the city calls a destination marketing organization, a non-profit entity to market local tourism.
A number of city councillors seemed excited by the idea, including Coun. Garrett Cochrane, who said such a move has been a long time coming.
"This is incredible," he said. "I'm glad we've made it."
Coun. Rob Warburton also expressed his enthusiasm, and Mayor Rebecca Alty echoed that same sentiment, saying it's a good opportunity for the city.
In a presentation to council on Nov. 25, Thistle said there are more than 300 short-term accommodation listings in the city, many of which are not registered as a business, which is required under an existing bylaw.
Thistle said the city has hired a contractor to provide it with a list of accomodation providers. Once the list is in hand, the city can follow up with those businesses to make sure they are in compliance.
Accommodations would collect the tourist tax and transfer funds to the city every four months.
The city will have added information sessions with accommodations operators about the levy during the first three months of the new year. It also plans to present a draft destination marketing organization structure to councillors before the end of March.
Exemptions from the new levy apply to the GNWT, anyone whose stay lasts for more than a month, or if the cost is less than $20 a night, Thistle explained. A person on medical travel, or anyone staying at a hospital or healthcare facility, would not be taxed either, she added.
