Wednesday, November 6, 2024 – The District of Sooke is moving forward with its application for the Municipal and Regional District Tax (MRDT) Program, a provincial initiative that could provide sustainable funding for tourism development and affordable housing initiatives in the community.
The program is a provincial tourism / visitor economy user levy initiative that was initiated and established by the Province of BC in 1987. Currently 97% of BC communities collect the MRDT. The collection of this levy from fixed roof accommodation businesses with 4 plus rooms has the potential to generate a sustainable revenue stream that can be used to offset the investment and costs for tourism projects, visitor economy market development, and additionally, it now can be used towards the development of affordable and attainable housing initiatives within the community of Sooke.
The District has engaged 4VI, (previously known as Tourism Vancouver Island) a not-for-profit social enterprise organization specializing in regenerative tourism development, to guide the application process. 4VI has experience working with 4 communities on Vancouver Island to guide the process of applying for the MRDT with a success rate of 100%. This partnership will ensure a comprehensive community first approach to implementing the MRDT program, which allows for up to a 3% tax on fixed-roof accommodations that have 4 or more rooms.
Key next steps for the application process include:
- Formation of a local tourism industry steering committee
- Extensive interest-based consultation within the community of Sooke
- Development of a five-year Strategic Business Plan that will guide how the collected revenue will strengthen and grow Sooke’s Tourism Economy
The District of Sooke aims to submit the final application package to the Province by February 2025, following collaborative community engagement and interest-holder consultation. The application package will include:
- District of Sooke’s new 2023 Juan de Fuca Tourism Corridor Strategy.
- Confirmation of the District’s Destination Marketing Organization (DMO) status with the Destination Marketing Organization of BC; and
- Confirmation of a 50%+1 local support from Sooke’s eligible accommodation providers
To be added to the project contact list, please do so here: DISTRICT OF SOOKE MRDT PROJECT CONTACT LIST FORM.
For more information on MRDT and the District’s application, please contact:
Gail Scott, Community Economic Developer Officer
Tel: 250-642-1634
e: gscott@sooke.ca
Media inquiries:
Christina Moog, Manager of Communications and Community Relations
Tel: 250-642-1634, 678. 678
E: cmoog@sooke.ca
Frequently Asked Questions
What is the MRDT program, and why is the District of Sooke applying?
The MRDT program is a provincial initiative that allows municipalities to apply a tax (accommodation user fee where a business is operating 4 or more rooms) on short-term accommodations, with the collected funds directed toward local tourism development and affordable housing. By joining the program, Sooke can create a sustainable revenue stream that supports our tourism sector while exploring new avenues to address housing needs. This model of financial diversification helps alleviate reliance on traditional funding sources, allowing the District to reinvest in key community priorities without increasing residential tax rates to do so.
How does the MRDT support economic growth in Sooke?
The MRDT helps fund marketing and development initiatives aimed at promoting Sooke as a tourism destination (while a portion of revenues can also be used to support affordable housing initiatives). By attracting more visitors, the District can stimulate local businesses and create opportunities for job growth. Tourism-driven revenue also circulates through our local economy, providing indirect benefits to various sectors and fostering a more resilient economic foundation.
Why is diversifying revenue important for the District?
As Sooke grows, the need for diversified revenue sources becomes essential to maintaining service levels, infrastructure, and economic development without increasing the tax burden on residents. The MRDT program offers a targeted, sector-specific revenue source that can fund tourism and housing initiatives, helping Sooke build a stronger, more diverse economic base while supporting long-term community sustainability.