The Capital Regional District stands behind a bid for Sidney hoteliers to apply to implement up to a three per cent tax on rooms in the Saanich Peninsula community.
Sidney BIA sought a letter of support from the CRD for a three per cent Municipal Regional District Tax – or hotel tax – in Sidney from 2025 to 2030.
The provincial program, which allows for a tax of up to three per cent on sales of short-term accommodation in participating areas of the province, started in 1987 to help grow revenue, visitation and jobs. Designated recipients can be local government, districts or a not-for-profit; in Sidney's case, the hotel group is specifically seeking to have the BIA handle the funds.
It’s estimated the tax would generate $410,000 annually from 2025 to 2030. It would impact six hotels with 257 rooms that have a 65 per cent average occupancy and an average $200 daily rate. The funds would be allocated to promoting the town as an overnight destination, specifically targeting the shoulder season of October through May.
“This funding will enable the Sidney BIA to undertake tourism marketing and help grow a year-round visitor economy in Sidney. Accommodation properties in Sidney unanimously support this application,” executive director Morgan Shaw wrote in a letter to the board.
The CRD unanimously supported the initiative through its Dec. 11 consent agenda where items are approved without discussion and must be unanimous.
The BIA previously sought, and received, a letter of support from the Town of Sidney.
