MUNICIPAL ACCOMMODATION TAX FUND AND APPLICATION

With the Province of Ontario’s passage of Bill 127, the Stronger Healthier Ontario Act, municipalities have been authorized to establish a transient accommodation tax within their jurisdictions. The implementation and administration of the accommodation tax is authorized under Section 400.1 of the Municipal Act and Ontario Regulation 435/17 (together with all other relevant  laws, regulations, decrees, orders, and by-laws, “Applicable Laws”). Where a Municipal Accommodation Tax (MAT) by-law is in place, the MAT is  mandatory and providers of transient accommodation are obligated to collect the MAT from purchasers of accommodation, and to remit same to the municipality having imposed it. The proceeds of the MAT must be allocated, distributed, and utilized, in accordance with Applicable Laws. In Red Lake, The Corporation of the Municipality of Red Lake has designated the HWY 105 Tourism & Marketing Board (HWY 105) as the organization that will  be responsible for allocating and distributing the marketing portion of the proceeds of the MAT. The HWY 105 has an existing non-profit board with a destination marketing mandate that has long encompassed tourism. The purpose of the Municipal Accommodations Tax Fund is to promote and grow the tourism industry in Red Lake. To guide investments the HWY105 will maintain a “Tourism Strategic Plan”. Details of same can be found on the HWY 105 website under MAT Fund at www.hwy105.ca

PROGRAM OBJECTIVES

To provide funding support in line with the priorities identified in the Tourism Strategic Plan and Annual Work Plan in order to foster the growth and development of the tourism sector.

Strategic Investment Goals

  • Sports/outdoor Tourism opportunities (may include tournaments, competitions, amateur sporting events, provincial or national sporting events)
  • Cultural and heritage tourism opportunities (may include concerts, festivals, culinary events, mining heritage)
  • Conferences and conventions (provincial and national in scope)
  • Marketing partnership projects (between local tourism partners)
  • Development of new tourism product and services (may include tours, packages,attraction development)
  • Enhance workforce capacity and inspire a community of ambassadors.

The mandate of the Municipal Accommodations Tax Fund is to enhance Red Lake’s tourism economy by supporting the development of new visitor experiences and enhancement of existing visiting experiences that:

  • Attract more visitors to Red Lake from at least 80 km away
  • Increases the length of stay of visitors to Red Lake
  • Increases the economic yield of visitors to Red Lake
  • Enhances Red Lake’s image as an attractive and appealing year-round visitor destination
  • Leverages partnerships and financial resources

ELIGIBILITY

All projects must show broader community impact; not solely increasing the benefit of one organization.

Product Development Projects

Funding may be allocated and distributed for:

Planning:  Support for feasibility studies and business plans that investigate the potential for the development of increased visitation and/or hotel room nights.

Start-up/Expansion:  Support for new/enhanced projects that will increase visitation and/or hotel room nights. (e.g. New festival/event, infrastructure, marketing and packaging costs).

Capital:  Support the capital costs associated with the development of increased visitation and/or hotel room nights.

Marketing:  Marketing partnerships that promote Tourism activities in Red Lake.

Bid Submission:  Support for costs of development and submissions of bids to host future meetings, conventions or sporting events  (eg. bid fees, familiarization tours, general bid requirements).

Hosting:  Support for hosting events awarded through bids or have been designated as provincially or nationally significant include capital and operating expenses, including, but not limited to, event rights fees, technical estimates/reports, facilities to be built or upgraded, equipment, hospitality, etc.

*Note  –  At this time, no funding will be made available for the support of ongoing operations.

APPLICANTS

The Municipal Accommodations Tax Fund is open to for-profit, not-for-profit, and both public and private sector and partnerships. Applications will be assessed based on the following criteria to achieve the following results, the broader intention of which is to grow  tourism in Red Lake, where applicable:

  • Increase in tourism visitation, overnight stays and visitor spending
  • Generate economic impact from the project or event
  • Provide positive regional, provincial, national or international exposure
  • Enhance Red Lake’s tourism offering to attract visitors
  • Strengthens Red Lake’s position as a destination
  • Support or creation of direct and/or indirect jobs
  • Encourage partnerships between local organizations

In addition to the criteria listed above, the MATS may consider all such other criteria and factors as it may deem appropriate from time to time, having regard to the objectives of the MAT and Applicable Laws. Applicants can apply for funding via the applications forms found on the HWY 105 website. HWY 105 staff is available to help applicants complete their applications. Prior to completing an application form, applicants must complete a pre-consultation process with HWY 105 staff to ensure the project they are proposing fits within the goals, guidelines and objectives of the fund. Applicants must email Hwy 105 at info@hwy105.ca and arrange a pre-consultation prior to applying for the funds. The 105 staff will work with applicants to ensure their application is complete and ready to go to the MATS for review. The Municipal Accommodations Tax Tourism Fund is a discretionary program with a limited funding allocation; accordingly, neither The Corporation of the Municipality of Red Lake, nor the HWY 105, including without limitation, the MATS, shall be required to allocate and or distribute funding to an applicant. For certainty, a project or event that meets all program criteria may not be approved for funding.

FUNDING

Eligible Costs:

  • Research or consulting services related to feasibility or business planning
  • Hosting fees to events rights holders
  • Marketing and promotion costs
  • Rental, lease or purchase of equipment/infrastructure
  • Project specific licenses and permits
  • Travel and registration expenses
  • Fees for artists, speakers and related costs
  • Signage and wayfinding costs
  • Salary costs that can be directly linked to project deliverables
  • Business hospitality expenses (food & beverage, gifts, transportation)
  • Training and development costs related to project
  • Defined event legacy funding (case by case basis)

Ineligible Costs:

  • Alcohol
  • Pre-existing deficit funding (grant or  loan)
  • Operating costs
  • Legal, audit, or interest fees
  • Donations
  • Prize money
  • Expenses related to charitable component (i.e. Lottery licenses and raffle expenses)

APPLICATION PROCESS

  • Applications must be submitted online. A two-phase application process will be required (pre-Consultation with staff first and then the actual application process).
  • Priority will be given to applicants who apply a minimum of 120-days out from the date of their event or start of the project. This will allow lead time for evaluation of potential funding and then, if funding is approved, ensure the logistics and marketing required to attract out-of-town participants and/or spectators can be met for a successful tourism event.
  • All funding shall be for future projects. Retroactive funding will not be considered.
  • All completed applications will be reviewed by the HWY 105 Municipal Accommodations Tax Tourism Subcommittee (MATS).
  • Applicants may be required to make a presentation to the committee as part of the review process.

Demonstrated Tourism Value

Applicants must identify in the application form that the project contributes positively to the growth and sustainability of Red Lake’s  tourism economy the following criteria will  be used to evaluate applications for tourism value.

  • Fulfills a gap in the tourism visitor experience landscape
  • Enhances current visitor experience offerings
  • Supports overnight accommodations growth
  • Creates and retains employment opportunities within the tourism sector
  • Supports the growth of Red Lake as a four seasons visitor destination
  • Demonstrates potential to grow domestic, international, and Canadian travel to the area
  • Demonstrates a financially sustainable business model

Final Report

Applicants receiving municipal accommodation fund funding will be required to submit a final  report, including key performance indicators, no later than 90 days after the completion of the project or event.

Key performance indicators can include but not limited to:

  • Overnight accommodations volume generated or influenced by the project
  • Length of stay per visitor
  • Tracking a visitor source markets; domestic, Canadian and international travel
  • Number of partnerships develops through the project
  • Permanent jobs created through the project
  • Financial resources leveraged from the project
  • Value of earned media resulting positive mentions of The Corporation of the Municipality of Red Lake
  • Visitor satisfaction ratings of the visitor experience once operational
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