Background on tourism

Public meeting kicks-off series of consultations on new DMO

How tourism should be marketed in Prince Edward County, and more importantly, how it can be done in a financially responsible way formed part of a virtual public information session Thursday. Around 60 participants tuned in to learn more about a new industry-led Destination Marketing Organization (DMO) the municipality has recently created. The new DMO will oversee the management and marketing of tourism in the County and, most significantly, it will decide how and where and when the DMO portion of the Municipal Accommodations Tax (MAT) will be spent. The public information session, hosted by Rebecca Lamb, Destination Marketing and Development Coordinator, is the first of many meetings and public consultations expected as the process of establishing a DMO comes together, a board is established, and bylaws and policies and procedures are written, all while seeking public input and consultation. The session did not allow for a live Q&A session, but questions could be submitted in advance. Among the attendees were Mayor Steve Ferguson, CAO Marcia Wallace and Councillors John Hirsch, Phil St-Jean and Bill Roberts.

A DMO is described as a non-profit entity responsible for promoting a community or a place as an attractive travel destination, and for enhancing its public image as a dynamic place to live, work or play. Lamb’s detailed presentation addressed several areas, including the intention of the DMO and its impact together with some background, the importance of industry sector representation, how finances will work, as well as timelines. The Municipal Accommodations Tax came into effect in Prince Edward County on February 1, 2021 as a result of the creation by the province in 2017 of the Transient Aaccommodations Regulation, which gave any municipality in the province the power to set up a municipal accommodations tax. It allows different destinations to create a MAT allowing municipalities to collect funds from tourists and to reinvest those funds in tourism in the community through two different streams. “Given this fund coming through and the ability to collect that tax, it is legally mandated that that tax be divided between the municipality and an appropriate DMO,” explained Lamb. “The municipality cannot be the DMO and the receiver of the municipal funds; there needs to be a separate entity that is at arm’s length or completely detached from the municipality.”

In February 2021, all roofed accommodations in the County began charging an additional four per cent to visitors’ bills, which the accommodator remits to the municipality. For the last remittance period ending November 2021(the final remittance for the year is available until January 31), the total amount collected by the municipality from MAT funds was over $871,000. With $114,000 in administrative fees, the net amount comes in at more than $757,000 where 50 per cent (just over $378,000) will be allocated to the new DMO and 50 per cent to the municipality. This figure is expected to grow substantially in 2022 and in future years. “The half that remains with the municipality is required to be spent on tourism infrastructure, so that could be anything related to the tourism management plan, it could be different assets that residents enjoy, not only tourists,” said Lamb. “The 50 per cent that must be legally provided to an appropriate DMO, that portion needs to be spent by law on tourism marketing, which can include product development.”

In her presentation, Lamb said given the current situation and the opportunities, the municipality thinks it’s an appropriate time to re-think tourism in the community. “What are the opportunities that we could work together on to create a better balance of tourism for residents or visitors and for industry and other stakeholders in that sector,” said Lamb. She says being able to create a municipal services corporation which will act as the DMO will allow industry to have significant input on destination marketing and on decisions, while retaining the relationship and partnership with the municipality, which will be working on oversight of the tourism management plan and other related strategies. “The DMO will not only be a dedicated voice for the sector, but it will allow the promotion of the destination without requiring Council’s approval beyond likely an annual budget, so it allows for a little bit of speedier decision.” An additional benefit for residents means the municipality is no longer using its operational tax dollars to fund tourism. “That portion will be reallocated to other community priorities,” said Lamb, who noted it is less than one per cent of the total tax bill.

Next steps will see industry and sector consultations take place in February, with a board to be in place by late April. The new bylaw that was to come before Council on February 8 will now come to Council on March 24. “Consultations will talk about what they want to see, how they want to see it happen, who they feel should be part of that inaugural board, how they feel they should be selected, ways to ensure accountability and transparency are happening and other methods of forming and shaping something that needs to be a little bit grassroots, a little bit by the industry for the industry, keeping community residents and visitors in mind.” Lamb explained how governance determines who has a voice in making decisions, how those decisions are made, and who is ultimately accountable. “The board and the governance are going to be a really exciting opportunity for the DMO to set up, not only how it works, but why it works that way,” she said. It was noted that before the board is in place, the municipality has to create a bylaw to allow the municipal services corporation or DMO to exist.

Lamb noted that residents are also a stakeholder and are also part of the community. “Many of our business operators are also residents, so recognizing the intersectionality of what people bring to the table with this is really important.” She said they were also looking at bringing a diversity of voices to the table. “If we can ensure all sectors and stakeholders are at this table and stepping together on this one path and investing in a DMO that is inclusive, then it can also be diverse and it can also be equitable.” She noted the County has many amazing assets. “People and places and projects, when we think about farmers, artists, wineries, parks, beaches, trails, heritage sites, restaurants, antique shops, wedding venues,” outlined Lamb. “It’s going to be an interesting opportunity and a challenge for this new DMO to find ways to represent each of those sectors in a way that works with those sectors.”

She said a series of stakeholder-specific industry input sessions in February will help shape and form what the inaugural board of the DMO is going to look like and how it can connect to local stakeholders, tourism sector partners, and not just those in Prince Edward County.” Further information on the new Destination Marketing Organization can be found at haveyoursay.thecounty.ca/destinationmarketingorganization, where comments or questions can be left. Tourism industry stakeholders who would like to get involved and offer feedback on the new DMO can contact Rebecca Lamb, Destination Marketing and Development Coordinator, via email at rlamb@pecounty.on.ca or by calling 613.503.1309.