Policy Instruments and Implications for Tourism Planning and Management in British Columbia

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Policy instrument used by the Tourism Industry Association of British Columbia (TIABC)
When a government or an institution wants to achieve the policy objectives they employ
various methods known us policy instruments. The type of policy instrument used will determine
the outcome of the policy implemented (Fletcher, Pforr & Brueckner, 2016). The primary role of
TIABC is to ensure the tourism industry in British Columbia (BC) is managed effectively
through advocating for proper policies. In TIABC recommendation to eliminate MRDT and PST
exemption, they employed the compulsory policy instrument (policy through law) which
involved the implementation of strict regulationSs such as taxation, direct provision of services,
and involvement with the public enterprises. Taxation remains to be the principal instrument of
public policy used by many governments around the globe (Vedung, 2017). The TIABC
collaborated with the Ministry of Tourism and Small business, Sport and Cultural Development,
Ministry of Community, Jobs, and Finance to institute legislation, regulations, parliamentary
resolutions, and administrative acts through which the issue of short-term accommodation would
be addressed.
Comparison between policies designed for municipal and provincial level
The issue of the short-term rentals (STRs) has been a significant problem in the entire
region of BC. The proliferation of STRs has created enormous difficulty for most of the
employees since they are not able to find affordable as well as adequate housing in the majority
of the communities. Therefore, this issue consequently affects the tour operators as the number
of staff needed to offer appropriate and quality services reduces. As such, the TIABC came up
with policies designed for the municipal and provincial levels to tackle this issue. First, they
urged all the civic politicians across the British Columbia together with the provincial
government to come up with specific regulations concerning the expansion of the STRs (Konanz,
2018). They also encouraged them to implement and enforce the developed rules so that the
problem of accommodation for many of the communities could be solved once and for all across
the province. The enormous task, therefore, was placed in the hands of the provincial
administration. They were to foresee the elimination of PST and MRDT (Municipal & Regional
District Tax) tax exemption. Under this rule, any owner of a property with rooms less than four
was exempted from paying the MRDT as well as the provincial sales tax. Therefore, the
provincial administration implemented regulations that prevented the collection of requisite taxes

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on STRs by organizations such as the Airbnb and FlipKey but instead need of submitting them
directly to the government (Griffiths, 2017).
On the other hand, at the municipal level, the TIABC urged the local governments to
develop, enforce, and implement regulations which every community can relate to regarding the
STRs (Nepal, 2008). They were to ensure the local property owners give out their rooms for rent
by following the proper legal procedure and also create a standard level playing ground for all
the traditional accommodation providers such as the resorts, restaurants, and hotels. The idea was
to institute rules and regulations that would fight for tax fairness and compliance (Konanz,
2018). By doing so, there will be an establishment of a fair competitive environment amongst the
short-term accommodation provider such as motels and hotels.
The policies designed for the municipal level are better compared to those directed
towards the provincial level- the sole reason being that these policies are targeting the local
communities and residents that are linked directly to the tourist’s site and the tourists themselves.
Therefore, these policies have led to enormous success in the tourism industry across the BC
whereby the licensing and taxation of the STRs has enhanced the development of the tourism
sector. Moreover, these regulations have created a healthy relationship and conducive
environment whereby the local government, traditional accommodation operators, and residents
through peaceful dialogue work together in finding housing solutions, hence creating an
unbiased playing fielding thereby everyone gets to win even the guests.
Implications for creating these policies in either the municipal and provincial levels
As compared to the long-term monthly leases of the tenants, the STRs generates higher
revenue through their nightly rentals. Therefore, the introduction of the policies that regulated
the STRs came as a loss to many communities offering these services. The policy of the TIABC
was to ensure that the booking platform collects the MRDT and PST at the source, and all the
data as well has to be analyzed and forwarded to the province. On the brighter side, this
guaranteed that there was an accurate estimation of the tax revenue collected from all the
tourists’ activities. The local government also will ascertain the protection of guests who book
these rentals, and in case of any catastrophe, they can be compensated for the loss of their items.
To a more significant extent, the introduction and implementation of these policies have solved
the problem of the rental accommodation experienced around the BC (Sawatzky, 2016). Re-entry