Council supports renewal of hotel tax

Prince George city council approved administration working with Tourism Prince George to prepare an application to the province to renew the three per cent Municipal and Regional District Tax (MRDT) for another five-year term, from July 1, 2027, to July 1, 2032. 

The MRDT is one of several tools available to support tourism marketing in B.C. The program is intended to increase tourism revenue, visitation, and jobs while strengthening B.C.’s tourism marketing in a competitive market. Tourism Prince George has recommended renewing the agreement at the current three per cent rate. 

Council also endorsed a resolution for the upcoming UBCM convention calling on the Province to review and amend MRDT regulations. The resolution asks the Province to address situations where destination marketing organizations and local governments lose MRDT revenue when hotel rooms are occupied for extended periods by construction, industrial, or other project-related workers. 

Current rules exempt accommodation rented for more than 27 consecutive days from MRDT. This means long-term workforce stays do not generate the same tourism tax revenue as short-term visitor stays. 

With approximately 2,000 hotel rooms, Prince George generates about $1.75 million in annual MRDT revenue. 

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