Kelowna accommodators have supported an increase to the Municipal and Regional District Tax (MRDT, 2% hotel tax), from its current level of 2% to 3% as is now permitted by the Province of BC. City staff presented the application to increase the tax to City Council today and it passed 1st, 2nd and 3rd reading. The final decision is expected late August. 65.5% of the Kelowna accommodation properties and 84.4% of the total accommodation units are in support. A minimum of 51% for both is required for the application.
If approved the increase will be implemented in the spring of 2017 and by 2018 is estimated to generate an additional $900,000 annually for destination marketing conducted by Tourism Kelowna. These funds will be used for a tourism growth strategy allowing Tourism Kelowna to increase marketing to areas that are beyond the reach of its current resources. Specifically this will allow for increased marketing in Ontario, Eastern Canada, and Washington State, new market development in other western states, and new international exposure in overseas markets through provincial and national partnerships.