Any hopes that the provincial government might help tourism-based communities like Jasper tap into additional revenue sources have been put on pause—at least for now.
The municipalities of Jasper, Banff and Canmore have been talking for years about ways to work with the provincial government to reassess the Tourism Levy Act in order to put money back into their communities.
Alberta finance minister Joe Ceci said he didn't see the levy changing in the foreseeable future, during a Hinton and District Chamber of Commerce dinner, May 3.
“I appreciate that the tourism industry is one of the steady things that is growing in the province right now, but I don’t see anything changing,” said Ceci, adding he's focused on dealing with the province's $10.4 billion deficit.
The provincial Tourism Levy Act replaced the Hotel Room Act in 2005. The act allows the province to charge a four per cent tax on temporary accommodations, such as hotel rooms.
As a tourism-based municipality, Jasper provides services, facilities and infrastructure to a far greater number of people than the number of people who actually pay municipal taxes.
For instance, last year 2.1 million visitors visited Jasper, yet there are only 5,000 residents in town to support the services and infrastructure needed to sustain those visitors.
Currently property taxes–which increased by 4.55 per cent this year– and service fees are the municipality's only sources of revenue.
Adding urgency to the issue, municipal taxes have increased by approximately 20 per cent over the past five years.
During last year's state of the municipality address, Ireland said defining tourism-based communities as a distinct municipal structure under the provincial Municipal Government Act is the first step to accessing alternative revenue sources.
Despite Ceci's comments, Mayor Ireland said he remains optimistic about the issue.
“The minister gets the picture,” said Ireland, who had a brief chat with the finance minister.
“I told him not only can [tourism municipalities] help the bottom line of the provincial economy, but we can also be the positive international face of Alberta—which the province needs right now.”
Ireland added that Ceci took his contact information and the two men plan to talk further about the issue.
“The world knows about the Canadian Rockies and that’s a real selling point,” Ireland said. “I think we just have to keep pushing that particular view and I think Minister Ceci may be a really receptive audience for that.”
Along with questions regarding alternative revenue sources for places like Jasper, the dinner crowd—which consisted of many West Yellowhead representatives—also asked Ceci about senior care and long term health beds, forestry concerns, affordable housing, and energy efficiency.
“We hear you and we are listening,” said Ceci, after answering one of the questions. While the minister gladly welcomed questions, the main purpose of his trip to Hinton was to discuss the NDP’s provincial budget and its Alberta Jobs Plan that he tabled April 14.
“We named our budget the jobs plans because that’s exactly what it is. It’s a plan to support Albertans through this downturn,” Ceci said. “It’s a plan to generate a better business environment for everyone and a plan to get Albertans working again.”
According to the minister, the jobs plan is designed to support families and communities, invest in infrastructure, diversify Alberta’s energy industry and support provincial businesses.
During the meeting, Ceci reminded the attentive crowd that this year’s deficit will be $10.4 billion, and said the government won’t be balancing its books until at least 2024.
West Yellowhead MLA Eric Rosendahl was also in attendance at the event.
“This was a great opportunity for the crowd to be able to voice their concerns with our provincial finance minister,” Rosendahl said. “It was great to have him here.”
Kayla Byrne [email protected]
