Heading to Happy Valley-Goose Bay? An overnight stay is about to rise through new tax
CBC
The cost of a motel, hotel, bed and breakfast and Airbnb’s in Happy Valley-Goose Bay is set to rise on April 1, triggered by a new bylaw in the central Labrador town.
In December the town announced it was implementing a tourism accommodation tax that will see a tax applied on the nightly rate of all tourist accommodations that must be paid back to the town to help fund other tourism initiatives.
“We’re hoping for increased signage and accessibility for tourists. Maybe a place to showcase our history, which we don’t really have right now,” town councillor Denise Rumbolt told CBC Radio’s Labrador Morning.
The tourism accommodation tax is not a mandatory bylaw but became an option for municipalities when the province changed the Municipalities Act of 1999 to the Towns and Local Service District Act in January 2025.
She said the act's change allowed the town to implement the bylaw.
“There isn't a designated pot of money for tourism. This has opened that door,” said Rumbolt.
Some tourism and accommodation operators in the region are wary of the new bylaw and how it will be policed.
Darren Buckle, owner of the Berry Suites, said the tourism tax will affect more than just tourists.
“I don't see a lot of tourists,” Buckle said. “We cater to a lot of people who are coming from the coast here for medical appointments, bringing their dogs for vet appointments, coming for hockey games.”
Buckle doesn’t want non-tourists to pay a tourism tax. He also wants to know how the town will monitor independently owned accommodations like his own.
“There are probably a bunch of other nightly renters out there that aren't registered. I agree with the registration process… We've had people that actually went to try and register and been told that the town isn't ready for it,” he said.
Buckle is also seeking answers about some of his pre-booked stays where guests will check in after April 1. He said the tax wasn’t applied when the guests initially made their bookings and he’s not going to change the fees for bookings that have already taken place.
“My bookings alone are going to cost me $1,500 out of pocket,” he said.
Destination Labrador executive director Randy Letto said business owners are concerned about the details of the tax.
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