FERNIE SIGNS RESORT MUNICIPALITY AGREEMENT WITH B.C.

March 31, 2009

FERNIE – Fernie is the most recent community to sign an agreement under the B.C. Resort Municipality Initiative with the Province, allowing it to share a portion of the provincial hotel room tax revenues generated in the community to invest in local resort-oriented projects, East Kootenay MLA Bill Bennett and Community Development Minister Kevin Krueger announced.

“I’ve long supported this initiative and have been working hard with the government to ensure that Fernie be designated as a resort region. This is another example of how our government supports rural communities,” said Bennett. “We are making sure that Fernie residents can reinvest into their community, fostering our future growth and development as well as helping weather the economic storm.”

Under the agreement, it is anticipated Fernie will receive an estimated $2 million over five years. The funding is expected to improve transportation alternatives that will reduce reliance on vehicles and promote a more active community; increase the number of events and festivals as well as attendees; increase business activity; reduce damage to the environment; boost tourism economy during shoulder seasons and provide enhanced tourism information and services.

“The agreement reached under the Resort Municipality Initiative is a unique way for communities like Fernie to strengthen the foundation of a tourism-based economy by enhancing vital infrastructure,” said Krueger. “This is a great opportunity for Fernie to grow its international reputation and further showcase its many assets as a year-round resort destination.”

Over the next five years, the agreement is expected to increase first-time visitors to Fernie, as well as visitor satisfaction and return rates, tourism activities, tourism businesses, private investments and municipal tax revenue.

“The City of Fernie is extremely pleased to qualify under the Program and have these funds to invest in key tourism infrastructure, programs and services,” said Fernie Mayor Cindy Corrigan. “Those investments will grow the tourism economy and enhance amenities and services enjoyed by residents too, thereby strengthening community pride and economic sustainability.”

Under the program, an eligible community receives a share of the provincial hotel room tax, an amount based on a formula that takes into account the level of tourist accommodation in the community, relative to other B.C. communities. The 13 eligible communities have tourism-based economies or are incorporated as “mountain resort municipalities” under the Local Government Act.

Communities must be prepared to put in place an additional two per cent hotel room tax, prepare a Resort Development Strategy that reflects the input of stakeholders and enter into a five-year results-based tourism development agreement that sets out what will be achieved through sharing of the hotel tax.

Twelve other eligible communities have reached similar agreements with the Province: Whistler, Golden, Rossland, Harrison Hot Springs, Radium Hot Springs, Kimberley, Invermere, Osoyoos, Valemount, Revelstoke, Ucluelet and Tofino.

Media Contact:
Public Affairs Bureau
Ministry of Community Development
250 387-4089