SUMMERSIDE – A local accommodations owner is once again upset with Summerside’s hotel room levy, saying the city is using the money to benefit only larger hotels.
Don Gaudet, owner of Baker’s Lighthouse Motel on Water Street, said the city accessed $5,000 from the levy fund to promote this week’s World Junior A Hockey Challenge, but offered team accommodations at only two hotels: the Loyalist Lakeview Resort and the Quality Inn.
“If we have to collect the money and send it in to the city, I want it to be used to promote myself and try to get people in here,” said Gaudet. “It has nothing to do with what the teams are asking for. It’s all been done by city hall, the organizers and the Credit Union Place and a couple of motels. I’m not getting any benefit out of it.”
The two per cent room levy was instituted by the city last year, with money collected from the tax used to promote events for Summerside.
Gaudet took the city to court last year over the tax. He eventually agreed to pay the levy, but said he wouldn’t charge it to his guests.
Janice Holmes, a member of the Levy Committee and herself a small motel owner, said the city didn’t request proposals for the hockey tournament from smaller hotels because the teams wanted amenities like meeting rooms and food service.
Holmes, the owner of the Summerside Motel and restaurant, said some smaller hotels benefited from overflow customers when the larger hotels were full.
“I had no vacancy last week and that’s pretty much unheard of for this time of the year. I’m positive that it’s been the same for other small hotels in the city,” she said.