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Summerland Proposes 3% Hotel Tax to Strengthen Tourism Marketing and Promote Sustainable Destination Growth

Summerland in British Columbia considers a 3% hotel tax to boost tourism marketing, enhance infrastructure, and support year-round destination development.

Summerland, British Columbia – June 2025:
The District of Summerland, nestled in the heart of British Columbia’s Okanagan Valley, is evaluating the implementation of a 3% hotel tax aimed at strengthening its tourism economy. The proposed Municipal and Regional District Tax (MRDT)—commonly known as a hotel or accommodation tax—would apply to hotels, motels, and short-term rentals, generating an estimated $180,000 annually to be reinvested into destination marketing and tourism infrastructure.

The move positions Summerland alongside other successful tourism-driven communities in the province, including Tofino, Nelson, and Osoyoos, which have long used the MRDT model to fund promotional campaigns and sustainable development.


Why Summerland Is Introducing a Hotel Tax

According to the District Council, the hotel tax is designed to elevate Summerland’s visibility as a year-round travel destination and ensure that tourism revenues are reinvested directly into the community. The funds would be allocated to Destination Summerland, the official local tourism organization, to finance digital marketingevent promotioncollaborative campaigns with local businesses, and strategic partnerships aimed at growing the region’s tourism appeal.

“As we face competition from surrounding destinations like Kelowna and Penticton, the ability to market Summerland more aggressively is critical,” said a municipal spokesperson. “This hotel tax allows us to do just that—while ensuring local tourism remains sustainable.”


Learning from British Columbia’s Successful MRDT Models

Several communities across British Columbia have already adopted the MRDT framework, which is administered by Destination BC in cooperation with local municipalities. In places like Osoyoos and Tofino, these funds have been used to support:

  • Seasonal tourism campaigns
  • Infrastructure improvements
  • Eco-tourism programs
  • Event hosting and community festivals
  • Trail and waterfront development projects

These examples provide Summerland with a tested blueprint for leveraging hotel tax revenue to attract more visitors while preserving the region’s natural beauty and cultural character.


How the 3% Tax Would Be Implemented

The proposed 3% MRDT would be added to the cost of overnight stays at participating accommodations, including traditional lodgings and short-term rentals like those listed on Airbnb and Vrbo. For example, a $200 hotel night would carry an additional $6 tax under the new model.

While modest in scale, the tax is projected to generate $180,000 annually, providing a consistent stream of funding to help Summerland:

  • Maintain competitiveness in key tourism markets
  • Fund new infrastructure such as signage and visitor centers
  • Develop seasonal marketing strategies to promote off-peak travel
  • Support local events and festivals that attract tourists year-round

The revenue will be collected locally but managed strategically by Destination Summerland to ensure it aligns with long-term tourism goals.


Public Engagement: Open House on June 18

To ensure transparency and gather stakeholder input, the District of Summerland will host a public open house on Wednesday, June 18, from 5 p.m. to 8 p.m. at the George Ryga Arts & Culture Centre. The event, organized in a drop-in format, will include a 6 p.m. presentation outlining the tax’s purpose, projected revenue, and potential benefits.

The open house is open to local residents, hotel operators, tourism businesses, and the general public. District officials and Destination Summerland representatives will be available to answer questions and collect feedback.

“The MRDT will only be implemented with input from the community,” said a tourism official. “We want stakeholders to help shape how the funds are used and ensure the approach supports sustainable, community-led tourism.”


Why the Hotel Tax Matters for Summerland’s Tourism Future

Summerland is known for its vineyards, lakeside recreation, arts scene, and year-round adventure tourism, attracting visitors from across Canada and internationally. However, with growing competition from nearby tourism hubs, officials believe strategic marketing is essential.

The hotel tax offers a way to fund long-term promotion without relying on general municipal revenues. The investment would help position Summerland as:

  • four-season destination for both domestic and international travelers
  • A leader in eco-conscious tourism development
  • A community committed to supporting small businesses and local culture

Destination Summerland would be responsible for implementing marketing campaigns to highlight the region’s signature offerings—such as wine tours, hiking trails, cycling routes, heritage sites, and water sports.


Sustainable Tourism at the Core

The MRDT is also being viewed through the lens of sustainability and community resilience. As Summerland attracts more visitors, it’s critical that infrastructure keeps pace. Funds from the hotel tax could be directed toward:

  • Environmental conservation programs
  • Trail and park maintenance
  • Sustainable transportation options
  • Carbon-reduction initiatives for tourism operators

By investing in green infrastructure and visitor education, the district aims to balance economic development with environmental preservation, ensuring that Summerland remains pristine and accessible for future generations.


Conclusion: Building a Brighter Tourism Future for Summerland

The proposed 3% hotel tax in Summerland represents a proactive step toward a stronger, more sustainable tourism economy. With the backing of Destination Summerland, the initiative promises to fund vital marketing efforts, improve visitor services, and drive year-round tourism.

Through public consultation, responsible fund allocation, and strategic planning, the district hopes to elevate Summerland’s profile on the national and global tourism stage—while maintaining its identity as a vibrant, community-driven destination.

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