T.I.F Frequently Asked Questions
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- Eleanor Stafford
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1 What does T.I.F. stand for? T.I.F T.I.F. stands for Tourism Improvement Fee. The 2% T.I.F. is being charged by lodging facilities and is part of a longer term strategy to maintain and improve the competitiveness of the destination of Banff, Lake Louise and Banff National Park. T.I.F. is not a tax as billing is handled before collection of the fees. The T.I.F. follows similar guidelines to the Alberta Tourism Levy. Why are we doing this? This new direction was approved by our membership, whom consists of tourism industry partners. The T.I.F. was created to respond to key findings in 2005 research which identified: Other destination Marketing Organizations invest significantly more to protect and grow their market share Banff Lake Louise s current market share is at risk Our ability to grow market share, given our competitor s current level of spending, is extremely challenging Other destinations are investing to create their own ionic status to rival that of Banff national Park Incremental funds for destination marketing and sales are needed When do I start charging the additional 2% fee to my guests? November 1, 2006 is the T.I.F. start date. All third party contracted leisure business (tour and travel) operators will be temporarily exempt from charging the T.I.F. until April 30, T.I.F. must be applied to all third party contracted leisure business bills starting May 01, MC&IT Market: The implementation of the T.I.F. with regards to the MC&IT market is November 1, 2006 With the exemption of signed contracts dated before June 15, Effective January 1, 2010 all MC&IT bookings must be charged T.I.F. regardless of when their contract was signed
2 What about internet bookings through companies like Travelocity and Expedia, do I charge those companies the T.I.F.? Yes, effective May 1, 2007 the 2% T.I.F. must be added onto their invoices. How come some properties are exempt from charging the T.I.F. The simple guideline to follow is, if you are charging the 4% Alberta Room Levy for the guestroom, so should you be charging the T.I.F. If, based on one of the above scenarios, you are not charging the Alberta Room Levy, nor would you charge the T.I.F. There are two criteria that would allow a property to not charge the T.I.F. If a Bed and Breakfast has less than four sleeping units to rent, they will not charge the T.I.F. If a facility has guests that stay with them for more than 28 days, they will not charge that guest the T.I.F. What do I tell my guests? We encourage you to proactively and accurately communicate this information to your hotel guests at time of reservation and at check in. Please tell your guests: Our rates are, plus applicable taxes and fees, approximately equal to 12%. How should I publicize this? It is best to tell your guests this directly, at time of reservation and again at check in. Having a written document addressing this fee may also be helpful. We recently sent out some sample letters that you could use. A summary of that content is: In addition to the room rate and taxes quoted we will be adding a 2% Tourism Improvement Fee (T.I.F.), to your accommodation charges on your final bill. This fee is being used to enhance the experience of all of our visitors by: funding destination initiatives such as enhanced Special Events and Heritage Tourism Programs and supporting new visitor experience initiatives. assisting us to improve and maintain our Information Centres and our website ( We greatly appreciate your patronage and support in maintaining the sustainability of Banff Lake Louise and Banff National Park.
3 How do I calculate the T.I.F? Since the T.I.F. is a fee, the Provincial Levy and Federal G.S.T. are applicable. For example: Room Cost $ % T.I.F $ 2.00 $ % Provincial Levy on $ $ % G.S.T. on $ $ 6.12 $ Do I have to disclose this fee on my bills? We recommend that you specify the T.I.F. on your bills. We encourage you to disclose it as outlined above. We believe it is in all of our best interests to be transparent about this fee and to keep consistency within our destination. What if a guest complains or refuses to pay? Other communities in Alberta which already charge a Tourism Fee have identified that this is very unlikely to occur. Most destinations in Canada and worldwide, now have a fee similar to this and travelers are quite accustomed to paying this type of charge. If front line staff and booking agents are informative when a guest is booking, any guest concerns will be minimized. Also explain to the guest that the fee is used to improve visitor experiences through Special Events, and provides funding for the Information Centres in Banff and Lake Louise. How will I be billed? Collins Barrow Chartered Accountants (a confidential third party agent) has been selected to work with industry to calculate the T.I.F. T.I.F. Remittance Forms will be sent to all accommodation to calculate the T.I.F. Collins Barrow Chartered Accountants will instruct the Town of Banff and Banff Lake Louise Tourism as to the individual amounts for T.I.F. annually. The Town of Banff will invoice and collect from accommodation located in the Town of Banff. Banff Lake Louise Tourism will invoice and collect from accommodation located in Banff National Park. Billing for every year s fees will be based on the previous four quarters actual remittance of the Alberta Tourism Levy. Fees will be payable at the end of each quarter in four installments. Your privacy is important to us, which is why we have chosen to use Collins Barrow Chartered Accountants - a Third Party Agent to calculate the T.I.F.
4 As you are aware, the Alberta Tourism Levy is based on 4% of room revenues and the T.I.F. is based on 2% of room revenues. A portion of the Alberta Tourism Levy paid for the previous four quarters less any temporary exemptions for will equal the amount remitted in the following year by the property. Due to the seasonal changes in occupancy, quarterly payments can be made as follows: Q 1 20% of total payable on or before March 31 Q2 25% of total payable on or before June 30 Q3 40% of total payable on or before Sept. 30 Q4 15% of total payable on or before Dec. 31 Because T.I.F. collection begins on November 1, 2006, the first remittance will be due on March 31, This amount will include the amount owing from November 1, 2006 March 31, 2007, a five month period, only for the first collection period. Collins Barrow, the Third Party Agent will reconcile each account at the end of each year and set the amounts for the following year. Seasonal Operations? Members carrying on Seasonal Operations shall pay the Tourism Improvement Fee, as calculated by Collins Barrow, the Third Party Agent, in two payments per calendar year, on the date and in an amount as determined by the percentages set out in the Schedule below: Date Payment is Due and Percentage of Annual Tourism Improvement Fee Payment June 30-50% of total payable Dec % of total payable How is it being administered? Operational costs are expected to remain relatively constant within Banff Lake Louise Tourism and the Town of Banff as the issuing of Schedule B will change very little. The most difficult year will be 2007 with the majority of the temporary exemptions occurring in that year. The majority of the administrative changes will be a function of the quarterly payment option and collection.
5 Is it just the lodging sector contributing to this fund? All Banff Lake Louise Tourism Members will be contributing. Please see the chart below to see exactly how: Category Basis All Future Years Exempt Lodging Pillows 20% 10% 10% 2% Restaurants/Bars Seats 0% 20% 20% 2% Retail Sq. Ft. 0% 20% 20% 2% Transportation/Entertainment/Attractions Various 20% 10% 10% 2% Service Flat Fee 20% 10% 10% 2% What if I have other questions? We are here to assist you and are available to answer any other questions you many have. Please feel free to contact: Anne Frick, Director, Member Service at or anne@banfflakelouise.com
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