Vancouver is not Venice or New Zealand or even Seattle. But it has something in common with those popular travel destinations.
Municipalities and countries throughout the world use tourism taxes to help pay for domestic amenities, fuel the economy and — in some cases — manage and limit the number of visitors.
Venice, for example, has implemented a day-tripper fee that requires payment to enter the city on some days. New Zealand this week announced that it is tripling its tourism tax in order to, as Reuters puts it, “ensure visitors contribute to public services and high-quality experiences.” In Seattle, a lodging tax helped fund construction of the Kingdome in the 1970s and, years later, the stadium now known as Lumen Field.
But even for smaller jurisdictions, tourism can be an important economic engine. As detailed in a recent article from Columbian reporter Brianna Murschel, Vancouver’s lodging tax typically generates about $3 million a year. Throughout Clark County, the lodging tax is 2 percent, a rate that is common in Washington; by comparison, the King County rate typically is 2.8 percent, but is 7 percent in Seattle.
In the city of Vancouver, half the funds from the tax go to the Vancouver Convention Center and half to the Lodging Tax Advisory Committee. That committee awards grants to support tourism and cultural enrichment projects.
“What the committee is seeking to do, is make sure that our tourism dollars through this program are having a broader impact on the whole Vancouver community,” said Chris Harder, the city’s deputy economic development director.
Harder added: “We’re looking to fund programs or events or festivals that have an economic impact and bring visitors into our community, where they spend at small businesses, in hotels or lodging facilities.”
Through Sept. 30, city officials are accepting grant applications for 2025 tourism and cultural enrichment projects that align with the city’s strategic plan. Several core values are spelled out in that plan: Livability with a sense of belonging and pride; sustainability and resiliency; innovation; equity and inclusion; and trust and relationships.
All of which brings up questions about the role of government. Effective and efficient taxation and spending can enhance a city, going toward projects that generate revenue to support future projects that draw visitors and contribute to a sense of community for residents. As urban planner Alex Garvin writes in the book “What Makes a Great City,” one of the keys is to attract and maintain demand.
Harder says of Vancouver’s tourism grants: “It was important … that these decisions aligned with broader city goals around things like climate change or environmental sustainability. We wanted to make sure that the dollars that were coming in were going towards programs or events that would have the right impact.”
Citizens can differ over what constitutes the “right” impact. And some are opposed to taxation in any form — even if it mostly targets visitors.
But tourism taxes, whether on hotels or restaurants or simply for the right to enter the city, are an important tool for effective urban management. For the world’s most popular destinations, tourism taxes are being increased in an attempt to slow the flow of visitors. For other locales, they are used to help fund attractions that draw additional visitors.
In Vancouver, that represents a wise investment in the city’s future.
