Destination Marketing Fee (DMF)

July 26th, 2012 | Posted by jdelroy-admin

Guests have been asking us what the DMF is all about.  Well, here is why it is being implemented and what it means for visitors who stay in Ottawa and other major cities in Ontario.

Funding for tourism and therefore promotion of Ottawa as a destination has been drastically reduced by the provincial government.  The new DMF is supported by the provincial governent to generate funds for local tourism promotion agencies such as Ottawa Tourism to allow them to market themselves to potential visitors, tour operators and convention planners .  This amount is remitted by the participating hotel to be used by Ottawa Tourism to promote Ottawa as a destination.  It is not used for hotel marketing.  This mechanism is very common in Canada as well as internationally.  Hotel room taxes or fees have become an accepted method for funding destination marketing programs.

The alternative to the DMF would have been  a provincially mandated Hotel Tax which would in all likelihood be higher  and would not necessarily be entirely directed to promoting local tourism.

The DMF is only applied to the room portion of your bill, not incidental charges such as parking, long distance calls, room service, etc.  The 3% DMF will be subject to HST.  An example would be:

 

Room Charge:       $100.00

DMF                               3.00

HST                              13.39

Total                        $116.39

 

The following list shows the current taxes and charges that are in place in other Canadian cities:

- Montreal – 18% …. (QST+HST=14.5% = 3.5 lodging tax)

- Charlottetown – 18% …. (5% GST + 10% PST + 3% Tourism accommodation levy)

- Winnipeg – 17% …. (5% HST +7% PST + 5% Accommodation Tax)

- Ottawa -16.4% …. (13% HST + 3% DMF + HST on DMF)

 

 




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