Province Introduces Amendments to the Cape Breton Marketing Levy Act

The tourism sector in Cape Breton will have more funding to grow and promote their industry following amendments to the Cape Breton Marketing Levy Act announced today, March 30, by Percy Paris, Minister of Tourism, Culture and Heritage.

The changes, which include making the levy optional for municipalities, exempting properties with less than 10 rooms and the process to determine how the money is spent to promote tourism, will enable the five municipalities to implement a levy on accommodations.

"The tourism industry contributes significantly to the economy of Cape Breton," said Mr. Paris. "We are pleased to have been able to work with industry leaders to find a solution that will provide a source of funding for tourism marketing in Cape Breton."

The Cape Breton Island Marketing Levy Act, Bill No. 267, was introduced in October, 2005 and required the five municipalities to implement a 1.5 per cent to 2 per cent levy that tourism accommodation operators must collect, regardless of the number of rooms.

The bill was given royal assent, but not proclaimed into law pending amendments and a clear statement of support from the five municipalities and Destination Cape Breton Association.

The department has now received support from the municipal councils and Destination Cape Breton who requested amendments be introduced and the act be proclaimed.

"In working with our municipal governments and industry partners, we are pleased to see these amendments brought forward in this session," said Mary Tulle, CEO for Destination Cape Breton. "This bill supporting the marketing levy will allow us to market our tourism industry and product in Cape Breton."

"The levy will provide funds to assist operators to explore new and different markets," said Scott MacAulay, CEO of Cape Breton Resorts. "We spend about 50 per cent of our promotion budget on destination marketing. With the levy in place that funding will have a greater reach and impact."

There are two other marketing levies in Nova Scotia. Both the Halifax Marketing Levy and the Yarmouth Marketing and Promotions Levy provide funds to promote those regions as tourism, meeting and convention destinations.