Council backs hotel levy to reshape tourism funding – DiscoverMooseJaw.com

Moose Jaw city council has approved a major shift in how the city funds and oversees tourism, adopting a new 1.5 per cent accommodation levy based on their taxable assessment and directing administration to redesign the community’s tourism governance model starting in 2026. 

The levy, which applies to the taxable assessment of local hotels, motels and inns with at least 10 rentable rooms, is expected to generate close to $1 million next year. It will replace the city’s traditional operating grants to Tourism moose Jaw and the Downtown Moose Jaw Association. 

The decision was made at Monday’s council meeting, with councillors saying that it isn’t a new concept that stabilizes long-term funding for tourism efforts in the city. 

“This is one of those things with our little city that we, I truly believe, need to get with the times,” Coun. Dawn Luhning said.  

“Every city is charging a fee on their hotel room bills. And yeah, you may begrudge about it when you are in your room and you go, wow, 21 dollars a night extra on this, but you pay the bill when you leave because that is the only alternative.” 

Levy to create stable tourism funding model 

City administration told council that the one per cent accommodation levy is based on a model used in Prince Albert.  

Accommodation providers would have the option to recoup the cost by applying a voluntary destination marketing fee to hotel room stays. City manager Maryse Carmichael said a one per cent levy would be equivalent to approximately a three per cent destination marketing fee. 

The city’s finance department would retain five per cent to cover administrative costs.  

The city will end annual grants to Tourism Moose Jaw and the Downtown Moose Jaw Association. In 2025, those organizations received $103,628 and $73,290 respectively, and potentially taking the burden off taxpayers. 

Administration said the levy will give Moose Jaw a sustainable way to support tourism marketing, event attraction and downtown promotion. These responsibilities are currently spread across three organizations (Tourism Moose Jaw, Visit Moose Jaw and Downtown Moose Jaw Association) with limited coordination. 

The city held an information night with the majority that attended being from Visit Moose Jaw and the reception was positive. The only concerns were why hotels were only getting the levy and one brand does not allow destination marketing fees (DMF) unless the fund go towards an official DMF entity. 

Coun. Patrick Boyle said he’s heard from other stakeholders who are also on board. 

“As the council representative of Tourism Moose Jaw and the downtown association, the conversations I have had with both groups, they are quite supportive of the direction the city is heading on this. But, like all of us, want to see what the governance model looks like. So, that is step two,” he said. 

Council orders new unified tourism structure 

Council also directed administration to prepare a report outlining options for a new tourism entity.  

The organization would be responsible for destination marketing, event attraction, and downtown promotion under a single governance structure. 

The goal, according to the report to council, is to reduce duplication, increase accountability and strengthen Moose Jaw’s competitiveness when bidding for major events. 

The proposed framework outlines a representative board, subcommittees for event sponsorships and downtown initiatives, and an annual performance report to council. 

“One model that has been really successful at the city over the last few years is when the Municipal Airport Authority was created through a bylaw from council directing who would sit on the board, how long they would be on that board, and really the purpose of that board and how they are composed,” Carmichael said. 

“So, the plans right now are for something similar, to take what we already have for the municipal airport and to recreate that for this new entity.” 

Administration said the new structure will also support the city’s 2026 to 2020 strategic plan, which identifies tourism as a key component of creating a vibrant, safe and welcoming community. 

Tourism a growing economic driver 

Tourism generated about $134 million in visitor spending in Moose Jaw in 2024. This amounted to five per cent of all tourism revenue in Saskatchewan. 

More than 28 per cent of the local labour force, or 4,645 workers, are employed in sales and service roles tied to hospitality and visitor experiences. 

“It is 30 per cent of our labour force. I cannot underscore the importance enough of that. It is a potential growth sector,” Boyle said.  

“We have an opportunity here to do it in a pretty serious way, in a more comprehensive way. We need to look at that.” 

A recent city survey, titled Prioritizing Our Future, showed strong public interest in improving how tourism is managed. Seventy-two per cent of respondents said Moose Jaw is either missing opportunities or could be doing more to promote itself as a destination. 

Tourism Moose Jaw facing financial pressures 

Tourism Moose Jaw, established in 1991, has struggled with fundraising demands and limited marketing resources. 

At the Oct. 27 council meeting, council approved a $73,500 line of credit for the organization after severe pigeon contamination forced the temporary closure of the Visitor Centre. 

The new levy will replace the annual operational grant provided to the group. 

Visit Moose Jaw, the city’s event-attraction body funded through a one per cent destination marketing fee on hotel stays, has supported events such as the Scotties Tournament of Hearts, World Para Hockey Championships, and this year’s World Men’s Curling Championship. 

Only about 25 per cent of local accommodation providers participate in the program. 

Administration said the newly aligned tourism model is expected to increase participation and strengthen Moose Jaw’s ability to attract and support major events. 

Next steps 

Administration will now prepare a detailed governance and structural options report for city council. The report is expected to come before council at either the Nov. 24 or Dec. 1 council meeting. 

The new levy will take effect in 2026. Council will also determine how levy funding will be distributed annually based on performance, community priorities, and alignment with the city’s strategic goals.