UPDATE: Council votes to ask for hotel tax increase

UPDATE: Council votes to ask for hotel tax increase

City to ask province, but first must make sure hotel industry on board

Abbotsford will apply to the province to hike its hotel tax in order to raise more money for tourism marketing.

Vistors to the city currently pay a two-per-cent tax on hotel, motel and other accommodation.

But with an agreement between the city and the province up for renewal, the board of the Tourism Abbotsford Society has recommended that the city apply to increase the tax to three per cent. Council unanimously approved the proposal at its Monday meeting.

The hike would raise about $120,000 more in revenue each year. That money would be used to market Abbotsford to tourists.

The city collected $291,000 in 2015 and $363,000 last year from the tax.

In order to raise the tax, the city must get the support of at least half the hotels, motels and other businesses that collect it from visitors.

Across B.C., a hotel tax applies in 57 different jurisdictions. Currently, 43 impose a two per cent tax, and 14 have a three-per-cent rate.