Moose Jaw City Council approved a major change in how the city funds and oversees tourism, adopting a new 1.5 percent lodging fee based on taxable valuation and directing administration to redesign the community’s tourism governance model starting in 2026.
The levy, which applies to taxing local hotels, motels and inns with at least 10 rooms for rent, is expected to raise nearly $1 million next year. It will replace the city’s traditional operating grants to Tourism Moose Jaw and the Downtown Moose Jaw Association.
The decision was made at Monday’s city council meeting, with councilors saying it’s not a new idea that stabilizes long-term funding for tourism efforts in the city.
“This is one of those small-town things that, I truly believe, we have to get with the times,” Kuhn said. Dawn Luhning said.
“Every city puts a fee on their hotel room bills. And yes, you might resent it when you’re in your room and go, wow, $21 a night extra on that, but you pay the bill when you leave because that’s the only alternative.”
Contribution to the creation of a stable tourism financing model
The city council told council the one per cent housing levy is based on a model used in Prince Albert.
Accommodation providers will have the option to recoup costs by applying a voluntary destination marketing fee to hotel room stays. City Manager Maryse Carmichael said a one percent levy would equate to a destination marketing fee of about 3 percent.
The city’s finance department will keep 5% to cover administrative costs.
The city will end annual grants to Tourism Moose Jaw and the Downtown Moose Jaw Association. In 2025, these agencies received $103,628 and $73,290, respectively, potentially taking the burden off taxpayers.
The administration said the levy will give Moose Jaw a sustainable way to support tourism marketing, event attraction and downtown promotion. These responsibilities are currently divided among three organizations (Tourism Moose Jaw, Visit Moose Jaw and Downtown Moose Jaw Association) with limited coordination.
The city held an information night with the majority of attendees being from Visit Moose Jaw and the reception was positive. The only concerns were because the hotels only got the levy and a brand doesn’t allow a destination marketing fee (DMF) unless the fund goes to an official DMF entity.
Coun. Patrick Boyle said he has heard from other interested parties who are also on board.
“As a representative of the Tourism Moose Jaw board and the downtown association, the conversations I’ve had with both groups are pretty supportive of the direction the city is going on this. But, like all of us, we want to see what the governance model looks like. That’s the second step,” he said.
The Council decrees a new unified tourism structure
The Council also instructed the administration to prepare a report outlining the options for a new tourism entity.
The agency will be responsible for destination marketing, event attraction and downtown promotion under a single governance structure.
The goal, according to the report to council, is to reduce duplication, increase accountability and strengthen Moose Jaw’s competitiveness when bidding on major events.
The proposed framework outlines a representative council, sub-committees on event sponsorships and downtown initiatives, and an annual performance report to council.
“One model that’s been really successful in the city over the last few years is when the Municipal Airport Authority was created through a charter from the board of who would be on the board, how long they would be on that board and really the purpose of that board and how they’re made up,” Carmichael said.
“So the plans right now are for something similar, to take what we already have for the municipal airport and recreate it for this new entity.”
The administration said the new structure will also support the city’s 2026-2020 strategic plan, which identifies tourism as a key component in creating a vibrant, safe and welcoming community.
Tourism a growing economic driver
Tourism generated an estimated $134 million in visitor spending in Moose Jaw in 2024. This amounted to 5 percent of all tourism revenue in Saskatchewan.
More than 28 percent of the local workforce, or 4,645 employees, are employed in sales and service roles related to hospitality and guest experiences.
“It’s 30 percent of our workforce. I can’t stress enough the importance of that. It’s a potential growth area,” Boyle said.
“We have an opportunity here to do it in a pretty serious way, in a more comprehensive way. We have to look at that.”
A recent city survey, entitled Prioritizing Our Future, showed strong public interest in improving the way tourism is managed. Seventy-two percent of respondents said Moose Jaw is either missing opportunities or could do more to promote itself as a destination.
Tourism Moose Jaw is facing financial pressures
Founded in 1991, Tourism Moose Jaw has struggled with fundraising requirements and limited marketing resources.
At the Oct. 27 council meeting, the council approved a $73,500 line of credit for the organization after a severe pigeon infestation forced the temporary closure of the Visitor Center.
The new levy will replace the annual operating grant provided to the group.
Visit Moose Jaw, the city’s event attraction funded through a one percent destination marketing fee on hotel stays, has supported events such as the Scotties Tournament of Hearts, the Para Hockey World Championships and this year’s World Men’s Curling Championship.
Only about 25 percent of local accommodation providers participate in the scheme.
Management said the newly aligned tourism model is expected to increase attendance and enhance Moose Jaw’s ability to attract and support major events.
Next steps
The administration will now prepare a detailed governance and structural options report for the council. The report is expected to come before council at either the Nov. 24 or Dec. 1 council meeting.
The new levy will take effect in 2026. The City will also determine how levy funding will be distributed annually based on performance, community priorities and alignment with the City’s strategic goals.
