Earlier this week, the Ministry of Finance introduced Bill 42 – 2022: Provincial Sales Tax Amendment Act, 2022 into legislature which will present a new Major Events Municipal and Regional District Tax (MRDT) of up to 2.5% on short-term accommodation sales. The City of Vancouver intends to use this temporary measure to offset the costs of planning, staging, and hosting the FIFA 2026 World Cup.
The British Columbia Hotel Association (BCHA) is working with the Hotel Association of Vancouver (HAV), the Province of British Columbia, and the City of Vancouver to determine the collection amount, duration, and overall workability of this regulation as it relates to the 2026 World Cup. We are deeply committed to ensuring the best interests of our local accommodation sector are acknowledged, as we aim to create a positive FIFA 2026 experience and outcome for our industry and all British Columbians in hosting this once-in-a-generation event.
Since the City of Vancouver began their engagement process in August of this year, where they proposed a 2-to-3-point rate increase, the Hotel Association of Vancouver has advocated for a fair and balanced approach, suggesting instead, a modest 1.5 point rate increase over four years. Based on estimated costs provided in August 2022, we believe a 1.5 point rate increase would allow our community to significantly contribute to, and still benefit from, the games while protecting Vancouver’s competitive position as a destination.
During the engagement, the HAV also recommended that other businesses, attractions, and jurisdictions outside of the City of Vancouver—that would also benefit from FIFA—be considered for collection. In addition, HAV also encouraged the City to discuss long-term revenue solutions, outside of MRDT, for hosting future major sporting events. We are disappointed that these recommendations have not been considered at this time but are prepared to continue working with the City to see that they are in future.
As the overall cost of FIFA 2026 is developed, the HAV and the BCHA will continue to advocate for all parties to work together, and for transparency in budget development and reporting.
Although the specifics of the regulation need to be determined, we remain supportive of FIFA 2026. We recognize the positive impact the event will have in bolstering tourism to our province, as it shines a spotlight on Vancouver and Beautiful British Columbia as a destination of choice to the more than 3.5 billion viewers the FIFA World Cup routinely attracts every four years.
Please know we are working hard on your behalf and will continue to keep you updated.
President & CEO
British Columbia Hotel Association
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