In hopes that one day the provincial government might help tourism-based communities tap into additional financial resources, Jasper, Banff and Canmore have collaborated on a study, which documents both the positive impacts and challenges of servicing visitor volumes that far exceed resident population.
鈥淭ourism benefits the provincial economy, yet the costs of providing [services] are supported by the local taxpayer in tourism communities, as the cost can only be covered through property taxes in the Alberta system,鈥� said Jasper鈥檚 chief administrative officer Mark Fercho, who read highlights from the report at council鈥檚 last meeting, Sept. 6.
鈥淭he result is that local taxpayers in Jasper cover the costs of hosting two-million visitors each year, while much of the benefits go to the province of Alberta.鈥�
According to the report鈥攑repared by Grant Thornton LLP鈥攖ourism-based communities make up less than one per cent of Alberta鈥檚 population, but play host to 13 per cent of the province鈥檚 visitors, attracting more than four million tourists annually.
鈥淭he study showed what we already knew鈥擩asper, Banff and Canmore are the destinations of choice that bring people to Alberta and then they go off and visit other parts,鈥� said Fercho, adding that, the three communities host 71 per cent of the province鈥檚 visitors from overseas and 37 per cent of its American tourists.
Fercho also noted the report stated that visitor spending through the towns results in an annual economic impact of $2.46-billion, 23,391 jobs and $756-million in tax revenue to three levels of government.
鈥淚t鈥檚 clear that these communities are a significant part of Alberta鈥檚 tourism economy and that benefits all of Alberta and Canada,鈥� Fercho said.
However with great success come great problems. As Fercho noted, as a tourism-based municipality, Jasper provides services, facilities and infrastructure to a far greater number of people than the number of people who actually pay municipal taxes. Last year 2.1 million visitors came to Jasper, yet there are only 5,000 residents in town to support the services and infrastructure needed to sustain those visitors.
And it鈥檚 a problem that keeps growing. While the official numbers aren鈥檛 in yet, both Tourism Jasper and Parks Canada said the number of visitors to Jasper has increased this year.
Currently property taxes鈥搘hich increased by 4.55 per cent earlier this year鈥� and service fees are the municipality鈥檚 only sources of revenue. Adding urgency to the issue, municipal taxes have increased by approximately 20 per cent over the past five years to maintain Jasper鈥檚 aging infrastructure.
The municipalities of Jasper, Banff and Canmore have been talking for years about ways to work with the provincial government to reassess the Tourism Levy Act or other taxes in order to put money back into their communities. However, those pleas have yet to be answered.
In May, when the 51暗网 asked about the possibility of reallocating funds for tourism communities like Jasper, Alberta finance minister Joe Ceci said he didn鈥檛 see anything changing in the foreseeable future.
This recent economic impact study is the second report the three municipalities have teamed up on in the past year. In August 2015, the towns released a review, highlighting the unique service demands in tourist communities and their effects.
That report recommended that a range of special revenue tools be created, which would include a tourist consumption levy, a real estate transfer levy and provincial/municipal revenue sharing arrangements.
鈥淭he point we want to make is that we鈥檙e not asking for money. Jasper is not looking to diminish any appropriations from existing hotel taxes currently funding Tourism Jasper and Travel Alberta,鈥� Fercho said. 鈥淏anff, Jasper and Canmore are just asking for the financial tools that will help maintain and grow the significant and financial benefit that the three communities generate to the provincial and federal government.鈥澛�
However, without those right tools, the recent impact study noted that the prosperity of each community won鈥檛 last forever, stating that to remain competitive, tourism destinations need to maintain their infrastructure to exceed expectations of mobile markets or those spenders will go elsewhere.
鈥淥ur closest competitors, U.S. mountain towns and British Columbia resort municipalities already benefit from financial tools to help them transfer some of the additional cost of visitors,鈥� Fercho said. 鈥淔rom water and wastewater to transit and marketing, tourism communities are obliged to invest in extraordinary levels of service.
鈥淲hen compared to U.S. counterparts, Alberta tourism communities are being outspent two to one.鈥�
Coming up later this fall, Jasper, Banff and Canmore will once again meet to discuss further strategies to hopefully have their concerns addressed by the provincial government.
Kayla Byrne [email protected]
