Tuesday May 22, 2012



QUESTION OF THE WEEK

  • The federal government has announced cuts to environmental reviews. Is this..
  • a) a necessary side effect of budget cutting
  • 43%
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  • 57%





Tourism partners don't like HST

Kootenay Rockies Tourism member poll indicates dislike of tax

While tourism organizations, such as the Tourism Association of BC, are now saying that the HST, especially when reduced to 10 per cent, is better than returning to GST/PST, members of Kootenay Rockies Tourism do not agree.

"We as Kootenay Rockies Tourism have not taken a formal position on this, but we did poll our members and ask how they are feeling about the HST," said President Chris Dadson.

Partners, made up primarily of tourism businesses, indicated that they feel the HST is hurting them.

Members were asked - do you feel the tax structure has impacted your business? Over 70 per cent of members felt the tax had a negative impact. Over 80 per cent feel it impacted the overall tourism industry. And 57.7 per cent said they were in favour of returning to the previous tax structure.

There are two main issues, Dadson said - the fact that this region borders non-tax jurisdictions and the fact that most tourism activities in this area are activity based.

"We assume our members feel differently because we are so close to the Unites States and Alberta borders.

"We are bordered on two of our three sides in this region, by non tax jurisdictions. Montana and Alberta have no sales tax at all. There's a GST in Alberta, there's no provincial sales tax. Montana has no sales tax of any kind."

Dadson says in Idaho and Washington, the sales tax doesn't apply to tourism related activities.

He says the HST taxes all tourism activities - golfing, skiing, any type of guided hike or rafting trip.

"When locals want to go for a hike, they just go for a walk, but tourists are often in the company of a guide. People visit this area for these activities and they have gone up with the tax. Golfing and skiing are the two principle activities in terms of total revenue that weren't taxed under the old system.

"We are concerned with the overall competitiveness of the tourism product. People can vacation anywhere they like. In North America tourists can go anywhere to golf and ski."

Dadson says that Kootenay Tourism Rockies understands the positive benefits of the HST, such as the input tax credit but their major concern is being competitive in a very tough market.

"Our members do recognize the benefits, their accounting is streamlined and they know it will be a hassle to go back," he said.

However, he says in Ontario, when the HST was implemented there was a mitigation fund for the tourism industry.

"The government says the HST is good for the province, it's cheaper to do business. It is good for Hollywood North, good for mining and forestry, which are export business. Our members don't feel it is good for tourism. Ontario recognized that and set up a mitigation fund. Here we have no mitigation fund, no mitigation plan."

Barring postal interruptions, voters in both Kootenay East and Columbia River Revelstoke should receive their HST referendum package in the next few days. Packages for Interior ridings were being mailed starting Monday.

Voters who do not receive a voting package by June 24, 2011 may call Elections BC at 1-800-661-8683 (toll-free) to register to vote or update their voter record and request an HST Referendum Voting Package. The deadline to request a voting package is midnight (local time) Friday, July 8, 2011.

To be eligible to vote, you must be:

a Canadian citizen

18 years of age or older, on or before July 22, 2011

a resident of British Columbia for at least six months immediately before July 22, 2011

registered as a British Columbia voter

not disqualified by the Election Act or other law

Ballot packages must be received by Elections BC, a Service BC Centre, or an Elections BC Collection Centre before 4:30 p.m., Friday, July 22, 2011. Locations to deliver ballot packages are listed on the Elections BC website at http://www.elections.bc.ca/index.php/referenda-recall-initiative/hst-2011/#return. The yellow return envelope is postage paid - no stamp is required if mailed in Canada.


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