Hotels group willing to raise room rates to fund Tourism Hamilton efforts
Plan would tack 2% on room bookings, but may hinge on city increasing Tourism Hamilton budget
http://www.thespec.com/news-story/63...ilton-efforts/
Large hoteliers are pitching a plan to charge extra for rooms and turn the proceeds over to Tourism Hamilton to help the city do more to attract large conventions and events.
The proposed destination marketing program shows tourism businesses are "willing to put skin in the game," said PJ Mercanti, CEO of Carmen's Group and spokesperson for the Hamilton Hospitality committee.
But it also appears to hinge on city council bumping up the budget of Tourism Hamilton, which has asked for an extra $350,000 in the 2016 budget.
Mercanti refused to comment directly on the Tourism Hamilton budget request, but said the group of hoteliers and industry stakeholders are waiting to see if the city is "willing to invest in a sustainable Tourism Hamilton" before forging ahead.
The program would raise marketing cash via the addition of a proposed two per cent fee to each hotel room booking.
Mercanti stressed the program, if it goes ahead, would be voluntary for hotels in the city. But if 70 per cent or more agree to participate, he said the fee could raise "hundreds of thousands" of extra dollars a year for wooing event and convention planners.
He told councillors around 20 Ontario cities — and countless American ones — already charge a similar fee, often higher than two per cent.
"Other cities are already very aggressive in this arena," said Mercanti, whose company owns a successful boutique hotel and also runs the city's convention centre.
Councillors reacted cautiously to the presentation.
"You're taxing your (customers) and asking us to tax ours as well," suggested Coun. Matthew Green, pointing to the as-yet unapproved request for an extra $350,000 for Tourism Hamilton.
Coun. Sam Merulla said he's not convinced "going toe-to-toe" with Toronto or Niagara Falls is the city's best tourism bet.
He said he's working on a motion that would seek a "co-operative" effort with popular tourism destinations that would position Hamilton as a partner for overflow bookings.
The city's budget committee will consider enhancements like the Tourism Hamilton request at a series of meetings next week.