Starting in August, hotel visitors in Sidney will be subject to a three per cent tax.
That's after the province approved a Municipal and Regional District Tax (MRDT) or hotel tax on sales of short-term accommodation.
The decision, green-lighting the Sidney Business Improvement Area's (BIA) application, guarantees a dedicated and consistent funding stream for tourism marketing, destination development and enhanced visitor services.
Set to be implemented on Aug. 1, the MRDT will levy a three per cent tax on bed and breakfasts, hotels and motels, resorts and inns, vacation rentals on Airbnb and Vrbo and other short-term accommodations like furnished suites and guesthouses.
The hotel tax will remain in place until 2030.
This is projected to generate approximately $410,000 annually, funds the Sidney BIA plans to allocate towards increasing year-round visitation, boosting direct hotel bookings and supporting overall local economic growth.
The initiative, initially explored in 2023, gained traction when the Sidney Hotel Group approached Sidney BIA in early 2024. The hotel group subsequently spearheaded stakeholder engagement, commissioned a tourism strategy and navigated the application process.
The application received endorsements from both the Capital Regional District and the Town of Sidney.
While Sidney BIA will officially receive and manage the MRDT funds, governance will be handled by a managing committee formed by the Sidney Hotel Group. This committee, comprised of representatives from each participating hotel, will oversee planning, expenditures and performance tracking. A designated liaison will provide regular updates to the Sidney BIA, ensuring clear communication and transparency.
"This is a significant step forward for Sidney's tourism economy," said Sidney BIA executive director Morgan Shaw. "Thanks to the leadership of the Sidney Hotel Group and the collaborative spirit of the broader tourism community, the MRDT will create meaningful new opportunities to promote Sidney and support our local economy."
Both Sidney BIA and Sidney Hotel Group acknowledged the contributions of other communities in B.C. who have successfully implemented the MRDT, particularly citing the City of Langford as a valuable source of guidance and a model for their own approach.
The six hotels that supported the MRDT application include Days Inn by Wyndham Victoria Airport Sidney, Best Western Plus Emerald Isle Hotel, Beacon Inn at Sidney, The Sidney Pier Hotel & Spa, Sidney Waterfront Inn & Suites and The Latch Inn.
"The Marriott TownePlace Suites, currently under construction and slated to open in fall 2025, expressed strong support and, based on their location, will be included in the program upon opening," Shaw added.
The three per cent hotel tax, according to Sidney BIA, is applicable to a variety of lodging establishments that are PST-registered and offer lodging for a continuous duration of fewer than 27 days.
"This all-inclusive strategy guarantees that both conventional and non-traditional lodging options support Sidney's tourism industry," Shaw explained.
