Starting in the upcoming year, individuals visiting Charlottetown will experience a slight increase in their overnight accommodation costs. The City of Charlottetown has decided to raise the tourism levy from three percent to four percent beginning in 2026.
This adjustment in the levy has been well received by many individuals working in the tourism sector. John Cudmore, who serves as the general manager of the Holman Grand Hotel and chairs the Hotel Association of Prince Edward Island, expressed optimism about the increase, anticipating that it will help sustain the positive momentum in tourism.
The levy applies to various types of accommodations, including short-term rentals, bed and breakfast establishments, and hotels. The revenue generated from this levy is divided among three organizations: Discover Charlottetown, Meet P.E.I., and the Special Events Reserve Fund (SERF), with the funds allocated towards promoting events, conferences, and tourism in Charlottetown.
City of Charlottetown’s Manager of Economic Growth and Attraction, Wayne Long, estimated that the levy adjustment will result in an additional $600,000 in revenue. Susan Freeman, the executive director of Meet P.E.I., expressed enthusiasm about the extra funds, emphasizing the importance of attracting and promoting Prince Edward Island as a competitive business event and conference destination.
Freeman highlighted that the increased funds will benefit the industry without imposing additional burdens on Charlottetown residents. She emphasized the significance of industry support in securing the necessary funding for future endeavors.
The decision to raise the levy was proposed by members of the tourism industry to Charlottetown’s city council. Cudmore mentioned that with the rise in marketing and advertising costs since the last increase, it is essential to align with current trends and elevate the city’s promotional activities.
Cudmore reassured that levies are customary in Canada and globally, indicating that tourists are accustomed to such charges and do not find them problematic. He believes that the additional one percent will not deter visitors from choosing the Island as a destination.
Since the inception of the levy, Charlottetown has witnessed a surge in tourism. Cudmore attributed this growth to the increased spending on marketing and promotion activities aimed at showcasing Charlottetown and Prince Edward Island to a broader audience.
