CBRM Airbnb rentals will have to pay tourism marketing levy

CBRM Airbnb rentals will have to pay tourism marketing levy

SYDNEY, N.S. — The Cape Breton Regional Municipality has voted to amend its advertising levy bylaw to extend the velocity to a few in step with cent and come with selection lodging like Airbnb and Vrbo.

The verdict got here following a presentation by means of Vacation spot Cape Breton CEO Terry Smith, who instructed council the additional cash is had to correctly advertise Cape Breton Island as a tourism vacation spot.

Smith stated Atlantic Canada Alternatives Company investment has lowered from $640,000 to $440,000 and is predicted to drop to $300,000. As well as, they’ve been negatively impacted by means of the emerging approval for Airbnb and Vrbo leases, that are exempt from the levy until there are greater than 10 rooms. 

Terry Smith, CEO of Destination Cape Breton. CONTRIBUTED - Contributed
Terry Smith, CEO of Vacation spot Cape Breton. CONTRIBUTED – Contributed



“So we’ve had those two components after which in fact the ultimate two years with the pandemic our levy revenues had been considerably impacted,” Smith defined, including that Vacation spot Cape Breton moved to a smaller development to avoid wasting on hire and decreased staffing from 11 full-time positions to 9.

“We’ve reduce all over we will be able to reduce and if we need to reduce additional, it’s going to be from the selling finances and it’s going to have an have an effect on at the effects we will be able to ship for our island’s tourism business. It’s helped us climb to new heights as a vacation spot however we’re headed for a cliff.”

In 2012, Vacation spot Cape Breton was once designated the respectable company to marketplace Cape Breton, signing a memorandum of working out with all 5 island municipalities. Every municipality collects the 2 in step with cent levy charged on lodge rooms, then passes that cash to Vacation spot Cape Breton.

CBRM.  - Contributed
CBRM. – Contributed



Smith stated the majority of the cash is used for virtual advertising to attract other people to the visitcapebreton.com site. He stated site visitors has greater frequently and is heading in the right direction to succeed in 1.4 million guests this 12 months.

“It’s doing rather well — loads of pastime within the island and we’re riding loads of site visitors to the site the place other people can then to find out the whole thing there may be to do in Cape Breton.”

He stated their advertising has confirmed to translate into vacationers, with the collection of room nights bought going from 371 in 2012 to 474 in 2017 sooner than dipping the previous few years as Airbnb and Vrbo grabbed a better proportion of the marketplace, rising from seven in step with cent in 2017 to 30 in step with cent in 2021. He stated analysis additionally signifies that the levy generates $27 in customer spending for each $1 accrued.

“So it’s been doing its activity because it was once installed position.”




Councillors praised Vacation spot Cape Breton’s efforts and Coun. Gordon MacDonald made a movement to approve the amendments Smith had asked. On the other hand, after dialogue, he adjusted his unique movement to incorporate the phrases “in theory” and ask body of workers to put in writing a subject paper to look how the levy might be used to draw extra occasions to the CBRM.

That in an instant raised issues from Coun. Earlene MacMullin, who took factor with the adjustments. MacMullin stated she didn’t perceive why they have been now balloting at the amendments in theory, and that she items to the CBRM attempting to make use of the levy for its personal functions.

She was much more nervous when CBRM CAO Marie Walsh defined that the vote could be in theory for the reason that provincial regulation that can substitute the present Cape Breton Advertising and marketing Levy Act hasn’t been enacted. Walsh additionally added that Smith has already met with CBRM body of workers to speak about devoted investment to draw occasions to the municipality.

“Who’s movement is that this precisely? Coun. MacDonald put a movement to the ground however the wording is being modified and also you’re explaining the wording that’s in it,” stated MacMullin. “I don’t have a excellent feeling about this in any respect — I’m no longer positive what’s taking place right here however one thing isn’t proper. Was once there a prior dialogue?”

A number of different councillors agreed.

“I, too, am no longer pleased with how the movement has been re-presented,” stated Coun. Steve Gillespie. “That is two separate problems. The primary factor is the presentation made by means of Terry Smith on behalf of Vacation spot Cape Breton, which I accept as true with. After which there’s a 2nd factor simply placed on to place a subject paper in combination. From my working out, factor papers come from this chamber, they don’t occur with time table atmosphere and/or senior body of workers. Right kind me if I’m fallacious.”

The confusion was once cleared after council was once knowledgeable that the provincial regulation has already long past into impact. The problem paper request was once additionally withdrawn and council voted unanimously in favour of MacDonald’s unique movement. 

The amendments pass into impact Jan. 1, 2024.

– Chris Connors is a multimedia journalist with the Cape Breton Put up. 

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