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Each winter I treasure a week skiing with my family. Last week we were at Big White Ski Resort and to our delight, the skiing was incredible. The grooming always impresses me. We had three days of fresh snow and some ego boosting cruising all around the mountain. I had time to think about the impact media has on our sector and the owner/operators who are so dependent on the travelers from Canada and abroad. The negative coverage about some of the ski hills being short of snow this winter have had a devastating impact on the hills that are open and enjoying great conditions.
I recommend everyone who loves a winter wonderland, book a ski vacation and enjoy every minute in the glory of winter.
Provincial Budget Recap:
B.C.’s debt to GDP ratio is projected to steadily increase from 21% in 2024-25 to 27.5% by 2026-27. It is unclear how this will affect B.C.’s credit rating, and the rate at which it can borrow.
Included in the Budget was an update on the third quarter forecast for the current fiscal year, which now projects a deficit if $5.9 billion. This is $357 million higher than the second quarterly report. This is attributed to lower corporate income tax revenues and lower revenues from natural gas royalties.
For a pre-election budget, it contained little in the way of new commitments, and focused on maintaining services in the face of a growing population. Primarily education and health care.
Major announcements in the budget include:
The increase in the exemption threshold for the Employer Health Tax from $500,000 to $1 million, we joined an alliance of business associations on behalf of our members to advocate for this change – our recommendation was increasing the threshold to $3million – so we moved a little in the right direction, and we are grateful that our government listened and took action to support small and medium sized businesses in the hospitality industry.
The budget for the Ministry of Tourism, Sports, Arts and Culture will see a slight increase over the 2023-24 forecast, from $182 million to $187 million in 2024-25. Provincial revenue from the tourism sector is estimated to increase in by 5% in each of the next three years. Destination B.C.’s budget for 2023-24 is forecasted to be $57.3 million and is $56.9 million in 2024-25. View the full budget here.
I would like to thank so many of you for reaching out regarding the new short term rental regulation and the language for strata hotels. Minister Kahlon reiterated during question period that Strata Hotel that operate as a hotel/motel or resort will continue to operate as such in question period this week. I keenly understand the importance that strata hotel operations continue to operate for employment and for community contributions. I do appreciate Minister Kahlon clarifying the intention of the short-term rental legislation is to protect rental accommodation, housing and enabling strata hotels to continue to operate as strata hotels.
We are working with our association partners, the Vancouver Board of Trade and the BC Business Council to ensure the Minister of Labour enables an extension on the time frame for consultation for the review of the BC Labour Code.
In last week’s newsletter, in error, we included an article on the Tribal Parks Allies program. It is important that we bring to the attention of the industry the West Coast Sustainable Tourism Association - a member-based organization that contributes to local communities through the collection of a 1% sustainability fee on all accommodation revenue. Their goal is to include all sectors and financially and transparently support a full range of worthy organizations, stakeholders and projects in support of a sustainable Clayoquot Sound. I’d like to acknowledge the leadership and commitment of this group of industry leaders with an eye for educating and sustaining the precious, natural area we all hold so dear.
Best regards,
Ingrid Jarrett
BCHA President & CEO
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