CBRM to withhold half of tourism marketing levy to promote large sporting events
The head of a marketing organization representing all of Cape Breton Island is raising serious concerns after the region’s largest municipality decided to withhold half of the money it raises through a levy on tourist accommodations.
Destination Cape Breton CEO Terry Smith expressed disappointment following the Cape Breton Regional Municipality councillors’ decision to keep around $500,000 a year for promoting large sporting events at CBRM facilities. Smith mentioned that the change was unexpected and that he had requested a meeting with Mayor Cecil Clarke to discuss the matter, but it never occurred.
The decision will result in a 20 per cent reduction in the marketing organization’s budget, potentially leading to budget cuts and staff layoffs. Smith emphasized that this move could also impact the effectiveness of marketing efforts for the island, which have seen significant success in recent years.
All five municipalities on Cape Breton Island levy a three per cent tax on tourist accommodations, with the funds previously going entirely to Destination Cape Breton. The organization uses this money to promote tourism across the island and attract events that bring more tourist dollars to the municipalities.
While councillors clarified that they were not dissatisfied with Destination Cape Breton, they expressed a desire to focus more on attracting large sporting events to CBRM venues. Mayor Cecil Clarke highlighted that the levy is expected to generate over $1 million this year and can be used to bid on major events, while Destination Cape Breton can concentrate on broader tourism advertising.
Despite the councillors’ insistence that they are not against Destination Cape Breton, Mayor Clarke stressed the need for more attention to be directed towards CBRM’s municipal venues. He emphasized the importance of balancing the marketing efforts between the island-wide promotion and events focused on CBRM facilities.
Smith pointed out that Destination Cape Breton has successfully attracted various events to the region, including international competitions and music festivals. He expressed concerns that if other island municipalities follow suit in withholding funds, it could lead to fragmentation of marketing dollars and hinder the overall tourism efforts.
Councillors Steve Gillespie, Steve Parsons, and Kim Sheppard-Campbell voted against the motion to approve the change, with Parsons questioning the lack of information provided and the potential impact on Destination Cape Breton. He stressed the importance of thorough consideration and dialogue before making significant decisions.
While Mayor Clarke stated that discussions on the funding change have been ongoing for months, Smith highlighted the need for transparency and communication in such decisions. He emphasized the importance of maintaining a stable funding stream for Destination Cape Breton while also supporting destination marketing within CBRM.
Overall, the decision to withhold funds from Destination Cape Breton has sparked concerns about the future of tourism marketing on Cape Breton Island. Collaboration and communication between all stakeholders will be crucial in navigating these changes and ensuring the continued success of tourism efforts across the region.
