Limited tax to support tourism communities hosting major events

Communities hosting major international tourism events will be able to bring in more revenue through a new tax.

B.C.’s new Major Events Municipal and Regional District Tax (Major Events MRDT) of up to 2.5 per cent on short-term accommodation will be implemented to help communities cover the costs of hosting events that bolster tourism and the economy.

The Major Events MRDT is a time-limited funding tool that requires communities to apply for through Destination B.C.

Communities that receive approval will be subject to public reporting and transparency.

“This isn’t a new concept,” said Selina Robinson, Minister of Finance.

“In 2007, a temporary 4 per cent Resort Area Tax, on top of the existing 2 per cent accommodation tax, was introduced in the Resort Municipality of Whistler to help pay its costs for hosting the 2010 Winter Olympics. We see the potential benefits for other communities that are working to put B.C. on the international stage and bolster our economy,” Robinson explained.

The Major Events MRDT is rolling out in advance of FIFA World Cup 2026, which is to be partially held in Vancouver.

The tax will only be applicable for internationally recognized events with the potential to draw significant out-of-province tourism.