reprinted from the Calgary Herald
Tourist tax touted for Banff:
By Jason
Van Rassel Banff risks sliding down the list of international ski destinations if it doesn't consider ways of raising new revenue by taxing visitors, says a new study. The study, by the Canada West Foundation, said Banff and Whistler are highly dependent on property taxes paid by local residents, while many resorts in the United States have been able to grow and expand by levying tourist-specific taxes on visitors. "(Banff and Whistler) can't capture people who come in and use the facilities for a short period of time," said Roger Gibbins, the Canada West Foundation's president and a co-author of the study. Instead, Banff relies on residential and business property taxes drawn from a base of 7,000 residents to maintain its status, while the four million people who enjoy the amenities pay virtually nothing toward their upkeep, Gibbins said. (Visitors do pay a five per cent provincial hotel room tax.) The study looked at 10 U.S. resort destinations and found many were able to raise money through relatively painless taxes on visitors. Ketchum, Idaho, for example, levies an additional one per cent sales tax on lodging as well as an additional one per cent tax on any alcohol consumed at public premises. "Something like that makes up a small portion of a bill for a meal," said Gibbins, adding the benefits accrue quickly when you factor in the number of visitors. "It adds up over time." Still, the idea of adding new levies in sales tax-free Alberta is anathema to some local officials who feel value is a big attraction for many tourists. "We're working in Canadian dollars and we're really still a great deal for visitors," said Ossi Treutler, a Banff town councillor. A spokesman for area ski resorts was also unsure what benefit additional tax revenue would have. "We're not advocating for more taxes. We want to offer an affordable experience," said Crosbie Cotton, director of the National Parks Ski Area Association. As it stands, ski magazines and travel journalists consistently rank Banff and Lake Louise among the top destinations in the world, he said. Cotton also questioned the need to add to the public purse when the Banff townsite's location inside a national park places restrictions on growth. Banff's status as a choice destination would be better safeguarded if the ski areas inside the park were able to proceed with their expansion plans, he added. "All the ski areas want to do is create the best possible skiing experience within their legal boundaries," Cotton said. "We are deeply concerned that conditions placed on us by the federal government could make us non-competitive in the long run." Gibbins said taxing visitors wouldn't necessarily make Banff any less attractive, considering its competitors have similar levies. While expanding the townsite may not be on
the agenda, additional revenue would be a welcome boon to the existing
facilities and users, said Gibbins. "It's not just a matter of allowing a
city to grow -- it's about it having a general level of services, its
physical appearance and security to make it attractive for people who come,
and better for the people who live there." |