Tourism an Policy Planning Report 2022

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Tourism an policy planning April 12
2020

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Introduction
Tourism is to travel for desire. Tourism is also for business. People from different
countries work in the tourism industry and earn well. Tourism can be of two kinds domestic and
international. Domestic tourism is travelling within the residing country. International tourism is
travelling outside residing country. The concept of tourism business involves accommodation,
entertaining tourists, and providing quality jobs in the tourism sector. The tourism industry has
become a significant basis of revenue for many provinces and all-inclusive countries. TIABC is
insisting municipal politicians across B.C. and the native government to grow and impose
guidelines to handle the increase of short-term vacation rental (STRs). The government has
identified there is no one resolution to this difficult issue of STR’s. TIABC recommends
province eliminating the exemption on PST and the MRDT that proprietors receive under current
regulation on less than four rooms. TIABC wishes native administrations to advance and impose
their own society regulations on short-term rentals to convince property owners to lawfully
propose rooms on rent and level the playing arena for traditional housing providers who pay
significant provincial and business taxes. This report will discuss the TIABC recommends to
eliminate the exemption of the taxes. This report will analyse the policy instruments practiced in
TIABC’s recommendations to eliminate PST and MRTD exemption. Further, this report will
express the implications of the creation of policies designed for the municipal instead of
provincial policies in either the municipal or the provincial levels. This report will analyze the
concept of tax exemption and will develop and recommend the policy that will assist in
addressing the lack of affordable accommodations for tourism workers. Although the provincial
government currently allows PST and MRDT on short-term accommodations, this report has
assumed that there is still an exemption on PST and MRTD in the tax provinces.
Tourism
Tourism is the procedure of spending time away from home in chase of relaxation and pleasure.
Tourism involves use of the commercial provision of services. Tourism is a product of modern
social activities. Tourism first began in Western Europe in the 17th century. Tourism has its
backgrounds in classical antiquity. Tourism can be understood from exploration of different
countries. Tourism edges with other doings, interests, and procedures, comprising, pilgrimage.

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Tourism provides rise to categories such as business travel, sports travel, and medical travel.
Tourism provides understanding and helps people to build perception and intelligence through
exploring new places.
Report study
This report is prepared through analysing the tourism industry association of B.C.
According to the report, TIABC is insisting politicians all over the B.C. to enhance and
implement guidelines to deal with the issue of the creation of STR’s accommodations in masses
of communities across the jurisdiction. In a conference in UBCM, victoria, delegates had a
discussion over the reducing unaffordable rental pool in many societies that have caused
difficulty in attracting new employees in the tourism industry pool. TIABC proposed the
authority can eliminate the exemption on PST and MRDT that property proprietors receive under
current guidelines on less than four rooms. Many other discussions took place at the conference.
The below-given report will analyze the report and discuss particular topics. The Tourism
Industry Association of BC has visualization for the travel sector. The visualization is "tourism
sector to be recognized as one of British Columbia's leading businesses" (TIABC, TIABC
CALLS ON CIVIC GOVERNMENTS AND THE PROVINCE TO IMPLEMENT , 2016).
Tourism industry of Canada
The tourism or travel industry includes 10% of Canada’s workforce. The Canadian
tourism industry workforce involves 1.8 million workers in 200,000 workstations (Canada,
2019). Tourism sector involves accommodations, food services, travel facilities, and
transportation. Tourism businesses generate approximately 5% of Canada’s GDP (Narayan,
2010). Vacation industry is identical to Canada's uniqueness. It highlights consistency, endorses
attachment and diversity, and contributes to ethnic and heritage preservation. The vacation
industry is overtaking the development in many parts worldwide. Investment in the growth of
travel products and services is an investment in jobs that help restructure communities and
generate economic success. Tourism can construct significant service that is available to
everyone, growing contribution rates in global economy; the tourism division has become
Canada’s workshop for fresher. The Canadian tourism industry delivers rich learning practices
that benefit persons gain social skills. Tourism draws many individuals looking for their first

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work knowledge and experience in Canada. It charms many more young adults seeks
opportunities that will support lifestyle needs. The only issue is when an individual starts to
travel and they find accommodations unaffordable. In Canada, travel sector is source of business.
The travel industry provides vital incentive to Canada’s commercial growth. Travel industry in
Canada is a blooming business.
Policy instrument analysis
TIABC sponsors the welfares of British Columbia's $13 billion-plus vacation industry
frugality. TIABC works with private sector tourism and marketing organizations collaboratively
(TIABC, 2019).
In day-to-day life, people go through many challenges. People go through challenges at
every phase of their life let it employment, daily surviving, and fight for daily necessities.
TIABC recently insisted British Columbia's politicians imposed guidelines to deal with STR’s
accommodation in many countries. Municipalities, regional districts, and eligible entities apply
the MRDT tax on sale of short-term housing in areas of British Columbia (Morgan, 2016). Short-
term accommodation helps the residents that have entered for a short period due to employment.
A high-priced rental pool in the community has caused visitors to leave the area and created
difficulties for them to stay and work. It is also essential for the community to attract employees
and expensive accommodations are making employees leave. Both taxes when implied on the
accommodation service increase the rent and it becomes unaffordable for the people.
There are many ways to generate capital in tourism. One of the most effective
instruments to capitalize can be participating in convention expos and present the company in the
market. Presenting the company in the market will provide direct promotion to the company.
Conventions in the local markets allow the company to present their products to the consumers
directly. These conventions happen in local location and these gives opportunities to the
companies to advertise about their products. Through these conventions, companies deal with the
customers directly, gain their attention, and earn huge profits. Companies can send direct
invites to particular investors as well to check out their booth in the convention.
The effectiveness of business has been the most significant subjects of investigation in
the pitches of economics and business. Economists primarily offered the theory of

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competitiveness in countries. The word has also extended significance as a subject of learning
among management researchers. Most witnessed studies on competitiveness at the industry level
is related to the manufacturing, and recently some researchers have started to study the
international competitiveness of the service sector with a particular focus on tourism destinations
and the hotel industry that deserves a systematic and critical review. The travel business
continues to embellishment in the worldwide competition.
The policy that eliminated the PST and MRDT exemption in STR’s are essential part of
the diversity of accommodation options in the community. This technique of accommodation
was offering a unique way of exercising visits to the local areas while providing income to the
property owners. Recently there was an increase in un-licensed short-term rents and this lead to
consequent loss to long-term accommodations. The growing number of un-licensed short-terms
rentals kept on increasing and this became the reason for the government to eliminate the tax
exemption from the tax policy. The discussion on short-term rentals took place and ambassadors
handed a resolution that devoted UBCM to work with several regional government ministries to
understand different tax policies that prevent small housing providers from collecting the
accommodation taxes that could eventually add millions of dollars in the income to provincial
funds. It is one easy concept that the taxes implemented on the tourism accommodation can add
millions to the revenues of government, and this became the reason for the government delegates
to eliminate PST and MRDT exemption from the tax policy.
The policy that was used to eliminate the taxes were, the organization insisted local
administration delegates at UBCM to develop and enforce new and own community regulations
on short-term rentals. They urged to induce property proprietors to legally offer housings for rent
and level the playing for traditional housing providers. The community insisted on government
delegates to change the tax policy. Besides hotels, resorts, and B&B’s advised to exempt the
taxes for the short-term guests. The root of the issue is about finding affordable accommodation
for the employees that decide on to work in tourism. It is already difficult to recruit employees in
the tourism industry and increased rents make employees leave the job. The local government
delegates revised many tax policies and later the resolution passed that these taxes can add
millions to the revenues.

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Creation of policies designed for the municipal instead of provincial level
Setting aside worldwide economic circumstances, strategic gears were accessible to
central, regional, and civic administrations that could meaningfully affect developing urban
assembly. Municipal governments can enforce tax regulations on allowances and tax rates.
Municipal government can enforce tax exemptions for the employer, and provide transfer
support. The provincial government can classify the type of pricing activities. District
administration guidelines and approaches can have a potential direct impact on tax policies
(Dahlby, 2012). This includes variations to the planning activities and the traffic act. Regional
municipal and regional transportation programs finance and planning are substantial gears for
implementation. Public policies and approaches involve property usage plan, thickness and
section controls. Public land use and transport strategies directly affect the land use development,
the performance of the transportation system.
Implications for creating policies
Municipalities are an integral part of Canada’s constitutional policy. It is essential to
empower the municipalities and end eagle eye them as persons of the provinces (Peters, 2012).
Municipalities are dynamic to the fitness of communal equality. In Canada, city delegates do not
always get the esteem they are worthy off (Stevens, 2014). A municipality is referring as
“creatures of the provinces”. Municipalities are set under regional authority of Canadian
Composition. Regional administrations have repeatedly used this idea to explain uncoordinated
involvement in community matters. Regardless of its well-known approval the concept that
municipalities are beings of the legal and political narrative that is still alive. The certainty is
municipalities are share of provincial jurisdiction; they are also an order of government with
constitutional implication. Provincial laws create and define municipalities. Constructing
municipalities in Canadian provinces will create local political organizations, representative
responsibilities, divide administrative power and build arrangements of responsibility to local
citizens. That will establish a new level of administration. Municipalities come under provincial
constitutions (Borrows, 2010). For instance, the municipal act amended through including a
rule-necessitating half of mainstream vote in the administration, or a vote to modify the
legislation. On the other hand, the additional condition possibly will be a modest legislated

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commitment to access a municipality on changes. Municipal societies and controls deserve more
confidence as reimbursement patterns change and urbanization progresses, jurisdiction must be
able to constitute in the interests of urban parts or provinces as a whole (Lippert, 2011).
Unregulated regional power over municipalities must be reduced but municipalities should not
be taken outside the space of provincial authority through an amendment to the countrywide
constitution. Metropolises are an essential portion of the Canadian alliance and Canada’s
legitimate scheme. It is time to discard the concept that they are ordinary “creatures of the
provinces.” Local societies must start a discussion of how to secure municipal independence in a
way that raids a balance between the authentic interests of both municipalities and provincial
governments (Cullingworth, 2017). There should be a balance between municipal and provincial
rules making (Wyplosz, 2012).
The ability to finance large sustainable travel investment projects such as hotels and
resorts can be challenged by a lack of suitable finance instruments. One reason for this is a
depositor and investors naturally prefer to liquidate assets quickly. This is particularly the case
for infrastructure investments. Financing minor tourism projects may require public intervention,
as higher transaction costs that could result in difficulties in accessing external finance.
Regulatory inflexibilities and an inadequate legal framework can also hinder the ability of the
financial system to adapt to the needs of small firms. This is mainly a challenge when companies
are subject to seasonal flows, as with many tourism businesses. Small and medium tourism
companies should introduce sustainable practices into existing business. These businesses may
not possess the necessary collateral to secure external financing. The issue of guarantee is
particularly challenging as many tourism businesses are involved in the production of service
and it is not clear how intangibles can be used as guarantee.
The specific policy that can assist in addressing the lack of affordable accommodations
The tourism and hotel sector is a strong and vibrant industry (Apostolakis, 2011).
Currently, the sector is experiencing record highs and the studies even forecast sector will keep
on growing. The Federal Government remains to have a focus on getting Canada’s available
workers out of unemployment and provide them meaningful jobs and the tourism industry have

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vacancies available. The key issue in the tourism industry is accommodation; rooms are unsold,
business turn away, and development plans reduced (Nieves, 2014).
One of the most complex issues in the tourism sector is unaffordable accommodation for
tourism employees (Biagi, 2012). Tourism employees stay at a particular place for only a short
duration. They expect to get accommodation at affordable prices. The PST and MRDT taxes
when applied to the accommodation results in price hike up (Griffiths, 2017). Travelers and
tourism employees need affordable hotel prices. Many options could help tourism employees and
travelers to stay in a quality space with affordable prices. Budget hotels, sharing hotels and
boutique hotels are a few options that provide a quality stay at affordable prices.
A Policy is a progress of action that guides business strategies and objectives. The policy
is a direct connection between an organization's visualization and daily operations (Too, 2014).
Policies recognize the key activities and provide an overall plan to decision-makers on how to
handle concerns. A well-inscribed procedure also helps discard mutual mistakes by identifying
job tasks and creating limits for the employees. Implications of creating policies either at
municipal or provincial levels can be both negative and positive. Creating a municipal policy
requires a two-third majority of community and provincial agreement to implement the policy.
Also, the provincial government can create a policy without considering any advice from the
municipal delegates. However, the municipal cannot create a policy without provincial
consideration. Tourism contributes actively to all businesses across the economy (Koens, 2015).
The process in which the visitor comes to the destination and consumes tourism products is a
tourist. Some people work in tourism and require affordable accommodations. In a highly
uneven business like travel where matters overlay different governmental responsibilities, it
becomes problematic to create public policies. The procedure of setting out and achieving a
grade of agreement on the current situation encountered by tourism, it is essential to the
development of a long-term vision and setting of aims, purposes and quantifiable results. Travel
industry approaches have persuaded to emphasis on the demand side of tourism and the need to
market to the tourist to draw them to destinations.
A new policy introduced in the Canadian tourism industry can help tourism employers to
get affordable accommodations. New policies that can be involved in the Canadian tourism
industry are budget hotels. The term budget hotel is puzzling to define. Budget hotel properties

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typically have a uniform appearance and propose basic services with limited food and beverage
facilities (Rahimi, 2017). The idea of budget hotels introduced and developed in the United
States. In Europe, Accor operates the predominant European-branded budget rooms (WILSON-
MAH, 2015). Accor has four hotel brands. These budget brands offer comfort, modern design,
and breakfast to the tourists, which is affordable for the community. Canada presently has no
industry principles to define boutique hotels, but these hotels commonly share some common
features. As replication of the size of the hotel, a boutique hotel is classically intimate and has an
easily adjustable atmosphere ( Patporn & Ngamyan, 2014).
Another idea could be sharing a space with the natives. Municipal government can
introduce a new policy stating that native people that have space and can give space to the
tourism employees and travelers and earn some extra money. Native people can charge tourism
employees and travelers on a per night basis or even per hour basis. This should not involve
taxes to the government, this way it will become easy for travelers and tourism employees to get
affordable accommodation.
Conclusion
The Municipal and Regional District Tax (MRDT) is a tax of up to three percent on the
acquisition of accommodation imposed in precise earthly areas of the province. MRDT intended
for tourism marketing, platforms, and projects. Provincial sales tax (PST) is a retail sales tax that
applies to taxable goods or services. PST is applicable on acquired or brought into B.C. unless a
specific exemption applies. PST usually applies to the purchase of new and used goods in B.C.,
goods brought, sent or delivered into B.C. for use in B.C. Tourism is a growing business industry
in many countries. Revenues generated from travelers are a big support to many countries. The
growing business industries have a few issues that need a revision for complete growth. Tourism
Industry Association of BC (TIABC) has recommended provincial and municipal delegated to
eliminate the exemption of PST and MRDT taxes on short-term rentals. These tax implications
provide million of revenues to the country but because of these taxes, accommodation becomes
expensive and unaffordable for tourism workers. Elimination of these taxes will make
accommodation affordable for tourism workers. This report has discussed the TIABC
recommendation to eliminate the exemption of the taxes. This report has analyzed the policy

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instruments practiced in TIABC’s recommendations to eliminate PST and MRTD exemption.
Further, this report has expressed the implications of the creation of policies designed for the
municipal instead of provincial policies in either the municipal or the provincial levels. This
report has analyzed the concept of tax exemption, has developed, and recommends the policy
that will assist in addressing the lack of affordable accommodations for tourism workers.

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