September 2, 2009

Tofino Chamber asks Province to delay implementing HST

In a letter to the preiemer of BC, the Tofino-Long Beach Chamber of Commerce has asked that the province consult with the tourism industry before implementing the Harmonized Sales Tax. 

For tourism-related goods and services previously exempt from the PST, the proposed HST will mean an increase of 7% in the cost of these items for the consumer. In an industry that relies on discretionary spending, this will likely result in a decrease in consumer spending. In an economic climate where we have already seen a decrease in tourism in our community, the HST can only have a negative impact on our tourism economy. This seems counterproductive when you consider the provincial government set a target in 2007 to double tourism revenues in British Columbia by 2015.

It appears that there was little or no consultation with the tourism industry, and little consideration of potentially negative impacts. Before implementing the proposed harmonized sales tax, the chamber has ask that the province work with tourism industry leaders to identify mechanisms to mitigate the impacts on the tourism industry.