Beginning in late 2025, visitors seeking short-term accommodations in Sidney would be subject to an additional 3 per cent hotel tax.
That’s if the Province approves the application for the establishment of a local Municipal and Regional District Tax (MRDT) by Sidney Hotel Group and Sidney Business Improvement Area (BIA).
The MRDT requires visitors to pay an additional 3 per cent for hotel stays on all short-term accommodations in Sidney, including short-term vacation rentals.
In 1987, the provincial government launched the MRDT to finance regional marketing and tourism initiatives. In a market that is becoming more and more competitive, the tax is meant to boost B.C.'s tourism marketing efforts and increase the province's income, tourism and employment.
Small towns like Sidney have a great chance to make calculated investments in their future development as a travel destination thanks to the MRDT.
"The shoulder season, which runs from October to May, is when Sidney tourism slows down," according to BIA executive director Morgan Shaw. "MRDT funding will help balance seasonal tourism demand by focusing on boosting visitation during these months through customized marketing campaigns and events."
Shaw added, the proposed 3 per cent tax is consistent with the standard rate implemented in other destinations across British Columbia.
“It was chosen to align Sidney with similar communities and to generate sufficient funding for impactful tourism development while remaining competitive as a destination,” she said.
During the council’s regular meeting held on Monday (Dec. 2), Mayor Cliff McNeil-Smith said he examined whether the implementation of a local MRDT would have any negative effects on the community before calling for a vote to pass the motion to provide a letter of support for it.
“I see no detriment in enacting a local MRDT in Sidney.”
The motion passed with a majority vote, with Couns. Steve Duck and Terri O’Keeffe opposed.
"Until we hear what other stakeholders, like B.C. Ferries, Victoria Airport Authority, and Destination Greater Victoria, have to say about the enactment of local hotel tax, I'm not supporting this in its current form," Duck stated.
Numerous other regions of British Columbia, such as the Gulf Islands, Victoria and Vancouver, have similar programs in place to promote tourism.
Based on six local hotels with 257 rooms, an average annual occupancy rate of 65 per cent and an average daily rate of $200—which includes $340,000 from traditional accommodations and $70,000 from online short-term rental platforms—the Sidney BIA expects to make $410,000 a year through the MRDT.
The MRDT, if approved is anticipated to start in late 2025 until 2030.
