Northern Bruce Peninsula is entering into an agreement with the Tobermory Chamber of Commerce to use funds from the Municipal Accommodation Tax (MAT) to promote tourism.
During a meeting on Jan. 9, council received a report from CAO Peggy Van Mierlo-West, recommending council enter into the agreement.
In 2017, the province enacted a bill giving municipalities the authority to levy an accommodation tax, which the municipality started collecting over the summer. The four per cent MAT is a revenue tool for municipalities to use to further promote tourism as an economic driver.
Mierlo-West says half of the net MAT revenue needs to be shared with a separate entity who supports promoting and developing tourism in the municipality. The other half would stay with the municipality to provide funding for future projects and initiatives, which aim to support and manage short-term accommodations.
The report says currently, the chamber receives a $70,000 grant for the operation of the Ferndale Tourism Information Booth. Should Northern Bruce Peninsula receive less then $140,000 annually in MAT, the municipality would top up the payment to $70,000.
“The one thing that was changed in here was, as council is aware we do provide the chamber with funding for the Ferndale site, they were concerned that should we have less than $140,000 on revenues from MAT tax one year, that they would lose their $70,000 funding, so we did include there it would be a minimum of $70,000 they would receive,” says Mierlo-West.
In entering into this agreement, the chamber would be expected to deliver on developing tourism relationships with other tourism entities, as well as marketing, and promotion.
“It also provides some deliverables back to council including a tourism strategic plan, the development of a stand alone committee, and those types of things,” says Mierlo-West.
The strategic plan will include a long-term vision for the local tourism sector, while also aligning with the municipality’s strategic plan and economic strategy.
The 2022 MAT funds have been placed in a reserve, and with the signed and approved agreement, the funds will be released to the chamber.
Each year, the funds will be released before Jan. 30 and on June 30.
