Back to Bills

Destination Marketing Fee Transparency Act

Full Title:
Traveller Protection and Destination Development Act

Summary#

  • Bill 16 sets province-wide rules for “destination marketing fees” that hotels, short‑term rentals, and tourism operators may choose to charge. It also adds new “price transparency” rules so travellers see all mandatory fees up front when booking.

  • The bill creates a system to designate one destination marketing organization (DMO), one accommodation association (if any), and one independent trustee in each area. Collected fees must be held in trust and used only for tourism marketing and development as set out in regulation.

  • Key changes:

    • Businesses may charge a destination marketing fee (DMF) only in areas with a designated DMO. Charging the fee is optional.
    • The fee rate will be set for each area (details to come in regulations). No extra “admin” surcharge can be added to the DMF.
    • Operators must collect the fee at purchase and send the full amount to a designated trustee, who holds it in a separate trust account and transfers funds to the DMO and, if designated, the accommodation association.
    • DMF dollars can be used only for permitted tourism marketing and development activities. Annual reports are required.
    • Inspectors can check records; there are administrative penalties and offences for false statements, keeping any portion of the fee, or charging a fee where no DMO is designated.
    • Consumer law is amended to require upfront disclosure of all mandatory fees for accommodation and tourism experiences at the time of booking, and to explain a fee’s purpose on request.
    • Transition: current fees and groups can keep operating through December 31, 2026. Full compliance is required starting January 1, 2027. The Act takes effect on Proclamation.

What it means for you#

  • Travellers

    • You should see all mandatory fees (like a DMF) included at the time you book a hotel, short‑term rental, or tourism activity. You can ask what each fee is for and how it will be used.
    • You may still see a separate line for taxes. The DMF, if charged, must be shown and cannot include extra “admin” markups for collecting it.
    • You could pay a DMF in some places but not others, because it is optional and area‑based.

  • Hotel guests and short‑term rental guests

    • A DMF may appear on your bill as a separate line. It applies to paid lodging, but not to long‑term residential rentals, care homes, hospitals, or other excluded lodgings.
    • Online bookings must show all mandatory fees up front at checkout.

  • Operators (hotels, motels, B&Bs, campgrounds, short‑term rentals, and tourism experience providers)

    • You may charge a DMF only if your area has a designated DMO (and, if applicable, accommodation association). You are not required to charge it.
    • If you charge it, you must collect the fee at purchase, keep required records in Alberta, and remit the full amount to the area’s trustee on schedule. You cannot add any extra “admin” fee for handling the DMF.
    • If an online platform processes the payment, you still remain responsible for remitting the DMF.
    • Expect inspections of records. Penalties can include administrative fines. Criminal offences can bring fines up to three times the amount gained and/or up to two years in jail, plus restitution orders.

  • Online platforms (online marketplaces for lodging or activities)

    • You are not liable if an operator fails to remit the DMF, but you also cannot add an extra “admin” fee to the purchaser for DMF collection.
    • You must display all mandatory fees at the time of booking under the new price transparency rule.

  • Destination marketing organizations and accommodation associations

    • Only one DMO (and, if used, one accommodation association) can be designated per area. You must be a non‑profit society or a Part 9 company to qualify.
    • You will receive DMF funds from the trustee and may spend them only on permitted tourism marketing and development purposes. Transfers to municipalities or others are allowed only as payment for specific goods or services tied to those purposes.
    • You must submit annual reports to the Minister.

  • Trustees (trust corporations or qualified accounting professionals)

    • You must keep DMF funds in a separate trust account in Canada, not invest or mix them with other money, and transfer funds to the DMO and (if applicable) the accommodation association as set out in regulation.
    • You are subject to audit and enforcement. Immediate suspension is possible during an investigation.

  • Everyone affected

    • If you are denied designation, penalized, or suspended, you can appeal the Minister’s decision to the Court on a question of law.

Expenses#

No publicly available information.

Proponents' View#

  • Creates clear, province‑wide standards so destination marketing fees are collected, safeguarded, and spent only on tourism growth.
  • Protects consumers by requiring upfront display of all mandatory fees and banning extra “admin” charges on top of the DMF.
  • Uses independent trustees and trust accounts to prevent misuse and build public trust.
  • Encourages local collaboration among DMOs, accommodation providers, and tourism operators to promote regions more effectively.
  • Keeps fees optional for businesses, rather than imposing a new tax.
  • Requires annual reporting and allows inspections, which supporters say will improve accountability.

Opponents' View#

  • Could raise the total price of trips in areas that choose to add a DMF, making Alberta less affordable for some travellers.
  • Adds paperwork and costs for small operators, especially short‑term rentals and activity providers, who must track and remit funds and face inspections.
  • Leaves key details (fee rates, permitted uses, record rules) to future regulations, creating uncertainty for businesses.
  • Government control over who is designated may sideline existing groups or create disputes in overlapping areas.
  • Consumers may still find fees confusing, even with upfront disclosure, and may see different practices from one area to another.
  • Enforcement powers (inspections, penalties) may feel heavy to some operators, while online platforms’ limited liability could weaken compliance incentives.