Banff Lake Louise Hotel Motel Association: Alberta Tourism Levy and State of the Industry

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Alberta Tourism Levy and State of the Industry

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Alberta Tourism Levy and the State of the Industry.pdf

December 6, 2007

Honourable Hector Gourdreau,
Minister of Tourism, Parks, Recreation & Culture
229 Legislature Building 10800 – 97 Ave
Edmonton, Alberta T5K 2B6

Subject: Alberta Tourism Levy and the State of the Industry

The Banff Lake Louise Hotel Motel Association (BLLHMA) is a strong supporter of tourism and believes that an improved governance structure for the Alberta Tourism Levy is key to positioning Alberta for future growth. From the BLLHMA’s perspective Option 3 of the Leitch Report provides the best solution for an industry-led and industry-governed structure that will ensure better accountability for the long-term return on the Alberta Tourism Levy. The BLLHMA understands consideration is being given to the future allocation of the Tourism Levy among tourism research/product development and tourism marketing priorities. The BLLHMA believes any decision with respect to an increased allocation to research and product development must be made on the basis of sound management principles, with evidence to support a project(s) capacity to generate an economic contribution that far exceeds the original investment. We would add the qualification that allocations to product development should include funding for world-class events or activities. Looking beyond the stewardship of the Levy, the BLLHMA is concerned about the general state of the industry, particularly in light of the strength of the Canadian dollar and increased propensity of Canadians to pursue travel options abroad. As a roughly $6B industry and as the province’s major generator of clean, renewable and sustainable economic growth, Tourism deserves a much higher priority on the government agenda than it currently receives. Alberta is no less susceptible to commodity pricing corrections today than it was in the past. That the desired diversification of the provincial economy has really not taken root leads to an age old question: ‘what industry will be cultivated to replace the diminishing contribution the resource sector will make in years to come?’ Where commodity revenue is largely driven by the volatility of global markets, over which we have no control, Tourism has the capacity to rise above a number of global challenges. It is an evolutionary product that has timeless appeal. It is an industry that generates investment, jobs and tax revenues while creating a huge economic multiplier effect for every dollar invested to promote it. The BLLHMA desires that Tourism become the strong pillar of the economy that previous political leaders envisaged it could be. The time is right.

Sincerely,

Darren Reeder
Executive Director