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News and Analysis from the BC Wilderness Tourism Association
November 2009

In This Issue
Future of Tourism BC
Harmonized Sales Tax (HST)
New ORV Framework for BC
Fraser River Sockeye Inquiry

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The Future of Tourism BC

As you will all be fully aware, the B.C. government, in there wisdom, decided to fold the crown corporation of Tourism BC effective April 1, 2010 and will be absorbing the tourism marketing organization into the Ministry of Tourism Culture and the Arts.  While government continues to make claims that this move will save money, increase efficiency and better target marketing resources, it is becoming more and more apparent that this was purely a political move.

In response to governments decision, the Wilderness Tourism Association (and other concerned members) urged the Council of Tourism Associations to pass a carefully worded resolution, which spoke to the need for the Council to work with the Province to ensure that an effective consumer-driven marketing organization be established that meets the mutual needs of industry and government, including the incorporation of these key principles: an autonomous, industry-led governance model free of political interference that operates on sound business principles, with formula-funding that enables long-term strategic planning over a multiple year long-term planning horizon.

At the same time the Minister of Tourism, Culture and the Arts, has recently announced a 'Minister's Council on Tourism', an "advisory committee", which will be accountable to and at the whim of the Minister himself.  The wilderness tourism sector feels that such a committee or council is at odds with the above COTA resolution, and will create confusion and conflict with the governance of the proposed future tourism Special Operating Agency.  Further, such a committee or council will not help or advance tourism issues in BC, and will more likely conflict with COTA's existing mandate to advocate on behalf of industry.

Although we recognize many of the names of individuals from our industry, the issue is that the structure is all wrong and it detracts from the preferred direction of the industry. The tourism industry will not rest until this government, or any subsequent government, returns to a reliable and effective marketing model that includes independence from political decision making, and committed formula generated funding.  It is only in this model that we can assure taxpayers and those of us invested in the industry that BC will be leaders in tourism marketing and growth.  It is unfortunate that many of our colleagues have been invited into a process that will only prove to serve the political needs of this government. We want to get back to the business of tourism marketing.  We will continue working with COTA and its members to organize an industry response. 
Harmonized Sales Tax (HST)

WTA has been working with COTA to complete its HST Impacts Analysis and report, which COTA has presented to the federal and provincial Finance Ministers, Premier Campbell, Minister Krueger, and other stakeholder groups.
 
The report has been extensively covered in the media, with wide coverage in major provincial dailies, talk radio, and business magazines.  The report was also a prominent discussion point, led by the Official Opposition, in the Legislative Assembly of BC.
 
Report Findings and Recommendations
The preliminary findings of the report are as follows:
- The average price impact (increase) of HST across the entire tourism industry is expected to be approximately 4.66%. 
- The anticipated net taxation impact (increase) on the tourism industry will be approximately $363 million (per year), which could result in annualized tourist expenditure declines of up to $545 million. 
- Direct HST-related job losses in the tourism industry are anticipated to be between 3,446 and 5,174 jobs.
- Total government taxation revenue losses (federal, provincial, local) are anticipated to be between $104.9 and $157.5 million per year.
 
We have also been working with COTA and other members to develop a reasonable yet meaningful mitigation package to bring forward to the provincial government.  Potential mitigation options were identified in the report and have been presented to the Premier, Minister of Finance, and the Select Standing Committee on Finance and Government Services.
 
These priorities are, in order:
- Ensure the full twelve (12) points of HST are eligible for foreign visitor rebates through the Foreign Convention and Tour Incentive Program (FCTIP), while enhancing this program to re-enable point-of-sale rebates and individual rebates.
- Establish income tax credits for labour for businesses that were previously PST-exempt, potentially phased-out over a period of 3-4 years. 
- Ensure the provincial marketing system is redesigned with adequate and predictable funding and with industry-led oversight and governance.  (NOTE: many members believe that COTA should continue to link the marketing system to HST-related advocacy, but should ensure that government considers the system's effective redesign as government's responsibility, not a "concession" related to HST).
- Honour existing contracts that did not charge PST (provide rebates or exemptions for this portion of HST for businesses).
- Remove the revenue cap requirement for Input Tax Credits for tourism-related businesses.
 
We are developing a full advocacy strategy that includes targeted government advocacy and public / media relations activities.  This will focus on ensuring that provincial and municipal elected officials are apprised of industry's recommendations, and that champions for HST mitigation are identified at various levels of government, industry, and the media.  WTA continues to place a priority on identifying and mitigating the negative impacts of the HST on tourism-related businesses.

If you would like a copy of the COTA report please contact the WTA office. admin@wilderness-tourism.bc.ca.
New ORV Framework for BC

Government recently announced that they are proposing an ORV management framework and associated regulations.  The WTA continues to be very concerned about the proliferation of un-managed ORV use on Crown land as it creates both safety and experiential issues for all users, both commercial and public.  A sound and systematic approach to ORV management in BC is long overdue, so we welcome this announcement and are encouraged by the real possibility of having regulations in place in the near future.

We strongly believe that a fundamental component of any ORV management and regulation framework is the registration and licensing of ORVs.  Registration and licensing of ORVs will provide sustainable solutions for the improved management and stewardship of public (non-commercial) recreation use on public lands.  For example it should improve compliance by riders knowing they can be identified, and it would provide the needed support for improved enforcement (via identification of vehicles).   It is hoped that registration and licensing would also provide opportunities to communicate with riders and provide educational material, to enable government to collect data on the number of vehicles and their location, and to help inform land use planning.

The proposed ORV management framework is a great start and we look forward to the positive results that will flow from it.  We were however, hoping that government would also consider annual licensing for all public ORV use on crown land and not just for crossing public roads.  Perhaps this can be a next step after the ORV sector(s) is comfortable with the current proposed policies and regulations.

Virtually all jurisdictions in North America require registration and/or licensing of ORVs and we are pleased that BC will now be following their lead in managing this important issue.
Fraser Sockeye Inquiry

On November 6, 2009, the Federal government announced that they would set up a Judicial Inquiry into the sharp decline of sockeye salmon in the Fraser River in British Columbia.  The Honourable Bruce Cohen, Justice of the Supreme Court of British Columbia, will investigate and report on the reasons for the decline of sockeye salmon in the Fraser River including consideration of aquaculture. He will also make recommendations for sustaining the sockeye salmon fishery in the Fraser River, which could include changes to the policies, practices and procedures of the federal Department of Fisheries and Oceans.

Key terms of reference for this inquiry include:
-to consider the policies and practices of the DFO with respect to the sockeye salmon fishery in the Fraser River - including its scientific advice, its fisheries policies and programs, its risk management strategies, its allocation of Departmental resources and its fisheries management practices and procedures, including monitoring, counting of stocks, forecasting and enforcement,
-to investigate and make independent findings of fact regarding the causes for the decline of Fraser River sockeye salmon including the impact of environmental changes along the Fraser River, marine environmental conditions, aquaculture, predators, diseases, water temperature and other factors that may have affected the ability of sockeye salmon to reach traditional spawning grounds or reach the ocean,
-to investigate the current state of Fraser River sockeye salmon stocks and the long term projections for those stocks,
-to develop recommendations for improving the future sustainability of the sockeye salmon fishery in the Fraser River including, as required, any changes to the policies, practices and procedures of DFO in relation to the management of the Fraser River sockeye salmon fishery,to conduct consultations related to the Inquiry as required.

The Honourable Bruce Cohen has until May 1, 2011 to submit the report to government. However, he is expected to make an interim report by August 2010.  The WTA welcomes this announcement and looks forward to participating in the inquiry as it plays out over the course of the next couple years.

In the meantime we still need to keep pressure on the federal government to protect BC's wild salmon.  We do know some of the major threats (destruction of habitat, sea lice infestation, predation and bacterial and viral epidemics, etc), and some of these threats like open-net salmon farms we can manage to minimize their impact.  Specifically, we need to try and change the way salmon farming is practiced to remove the impacts of sea lice and disease.  

DFO is currently in the process of developing a new regulation for aquaculture in BC, in response to the February 2009 British Columbia Supreme Court (BCSC) decision regarding aquaculture.  The WTA will be participating in this process to try to get policies in place that will protect wild salmon, such as sea lice thresholds equal to, or less than natural background levels, and those that encourage a move to closed containment.

Canada's Wild Salmon Policy is another crucial tool that can help protect wild salmon as well as the Fisheries Act.  Now is the time to allocate resources to these tools and put them to work as the Province hands over responsibility for tidal finfish aquaculture including salmon farming to the Federal government.   We must also encourage government to invest more funding in closed containment technology and science to understand the exact details of the impacts to wild salmon.

If you want to help the cause or find out more info, Save Our Salmon (SOS)  www.saveoursalmon.ca and Adopt A Fry www.adopt-a-fry.org are good places to start.
Bewildinbc.com

WTA has redeveloped the bewildinbc website to become a consumer travel site for WTA members.  Bewildinbc.com will act as an online travel magazine with feature articles, activities and destinations, member search engine and a travel blog.  Members will be able to advertise on the site to increase their exposure. The site is now live and we will be completing final edits over the next few days.  Please visit the site and provide comments.  We will be counting on members to distribute information on and about the website to their clients to increase traffic and exposure for our members' great products.
www.bewildinbcblog.blogspot.com

For the latest in BC wilderness travel and profiles of WTA members, visit Ryan Stuart's blog at: www.bewildinbcblog.blogspot.com
Wilderness Tourism Association - "Ensuring a sustainable future for BC's wilderness tourism industry through leadership, advocacy, and education."  Visit our website for more information on who we are and what we do.
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