Destination Marketing Fee FAQ's

 

What is a Destination Marketing Fee?

    • Participating Pomeroy accommodation properties assess a 3% levy on all room rates refer to on the customer folio as a DMF (Destination Marketing Fee). This is to be used to enhance existing marketing and assistance with community initiatives within each region of Pomeroy properties.
    • DMF’s are quite common in tourism oriented cities including Toronto, Calgary, Edmonton, Montreal and Ottawa and while their structures may differ to some extent the purpose, to enhance current marketing and assistance to community endeavors, is the same.

 

Why is it necessary at this time?

    •  Funding for marketing and community endeavors is limited. Provincial spending on marking for our rural areas is no where close to what is need to make our regions compete with the bigger center markets.  To remain competitive we need to increase the funding available for destination marketing.  The DMF would allow the hospitality community to increase the funding and all the hotel stakeholders to play a part in the decision making for fund allocation.
    • We must be aware that as transportation improves and as other area continue to develop and become more affluent they then also become a greater competition for our own areas allowing them to become exciting and vibrant destinations to visit.
    • We must ensure that each area takes full advantage of the spotlight that will be placed on it by the numerous events that each area hosts and take our tourism sector to new levels.  These dollars will help in doing that.

     

What is the method of determining how much money individual properties with contribute?

  • Each property includes a 3% DMF (Destination Marketing Fee) on their properties room sales.

 

How does the DMF differ from the current tourism taxes put on bill by provincial government?

  •  The B.C. sales and the Alberta Tourism taxes are directed by government and are legislated. The DMF on the other hand is basically individual properties/business volunteering to contribute funds to a joint marketing and community programs.  It is an
    industry to industry contractual deal.

 

Who will administer the DMF?

    • The Rural Discovery Destination Marketing Fund (RDDMF), a separate non profit entity, will administer the DMF with all participating properties.  A Management Committee, consisting of hoteliers, will determine the best use of the funds.

 

How does the RDDMF relate to the tourism of these regions?

    • The RDDMF will work closely with each Regional Tourism Association as the hotels do already and some funds will be utilized to supplement existing marketing programs while some money may be used towards community programs within the region.

     

Are there any restrictions on how the funds are to be used?

  •  A Marketing and Convention Committee will advise to the Management Committee uses for the funds with use being limited to regional marketing and community endeavors.  This fund is not to be used for infrastructure or offset non-operating costs.

 

What is the government’s role in the DMF?

  •  None.  Since this is not a government program or a tax but a group of businesses working together to provide the Peace Country and area with regional marketing and community endeavors with additional resources.

 

Is this being done in response to cut backs in government funding?

  •  No.  This is merely a group of business stepping up to ensure that ample regional marketing is done as well as community endeavors. This will allow our Management Committee to be fully engaged in the planning and implementation of the community and regional marketing programs.

 

What does voluntary mean?

  •  Each individual hotel property enters into a contract with the RDDMF, agreeing to collect 3% DMF (Destination Marketing Fee) on behalf of the RDDMF.  The remittance schedule will coincide at the end of each month.
  • Only those hotels that sigh up to pay the DMF will do so.

 

How will we be expected to collect the 3%?

  • The Hotel property will reflect the DMF as a separate line item charge on guest invoices. No property shall misrepresent the nature of the DMF in any verbal communication or promotional materials.  It shall not represent or create the impression that the DMF is a government levy of tax of any kind that it is required by law to charge to guests.

 

Who do we remit the 3% to?

  •  Funds are sent to RDDMF on a monthly basis, who in turn administers distribution of the funds.

 

Who will collect the fund?

  •  The DMF is colleted by each property and remitted to the RDDMF. Funds collected through the DMF, less administrative expenses, will be used for regional marketing and community endeavors. 

 

Is the DMF a tax?

  •  The DMF is not a tax.  The government is not involved in the approval or collection of the DMF.  It would be an agreement between the properties and the RDDMF.

 

How will funds from the DMF be invested in Regional Marketing and Community endeavors?

  •  Our Marketing and Convention Committee will recommend initiatives for the community and for the regions within our area.  The Management Committee then will approve and oversee the distribution of funds.

 

How will Funding distribution be decided on?

  •  Working with in an approved budget, on a monthly basis the Management Committee will meet to discuss and determine which community endeavors and regional marking plans to approve for funding.