Council has approved a three-year Financial Accountability and Relationship Agreement with Visit the County.
Established in 2022, VTC is funded largely by the proceeds of the Municipal Accommodation Tax, a four percent fee on short term accommodations, like hotels and AirBnBs. The funds must support tourism-related initiatives and infrastructure. Half of the total revenue after expenses stays with the municipality, while the other half is divided between the County’s eligible DMMOs, or Destination Marketing & Management Organizations, VTC and StayPEC.
In 2024, the County collected about $1.3 million in MAT. $628k went to the DMMOs, $105k to StayPEC and $523k to VTC.
In her presentation to Council, Community Programs Supervisor Julianne Snepsts noted that after three years of operations the existing agreement needs updates to reflect the scope and nature of VTC’s relation to the municipality. She added that VTC collaborated with County Staff to revise the agreement.
Accounting for how MAT funds are spent, and the way destination management is shared between the municipality and VTC were key items. More clarity might be sought in VTC’s financial statements. At its June 2025 AGM, held at the Picton Town Hall, the financial reports presented did not offer a clear spending breakdown. While $429k went to “advertising and marketing” in 2024, VTC did not indicate how much was spent where.
In response to queries from the Gazette, Ms. Fox said she was unable to provide a specific breakdown of last year’s near half-million advertising spend. Presentation slides at the AGM noted that between 2022 and 2024, 5 percent of Visit the County’s marketing budget was dedicated to the Community Partnership Fund, 4 percent went to local businesses, and 4 percent to local media. 17 percent went to re-branding and its new website.
In 2024, the County collected about $1.3 million in MAT.
$628k went to the DMMOs, $105k to StayPEC and $523k to VTC.
For the next two years, VTC will be audited by the Municipality’s auditor to ensure both accuracy and transparency. The cost, about $4,000 a year, will be paid by the County. Starting in 2027, VTC will retain auditors at its own expense.
The agreement also stipulates VTC shall retain staff and/or Board members with the expertise to manage DMMO programs and MAT funds in accordance with applicable legislation.
Finally, VTC must make reasonable efforts to engage with local tourism industry stakeholders at least once annually, to inform and receive input on key plans.
Ms. Snepsts noted oversight is paramount. If, during inspections or audits of contracts, records, claims and accounts, payments made by the Municipality to VTC are found to have been spent for any purpose other than for tourism-related activities, VTC must remit the amounts requested. Further, the municipality can withhold funds if they are not properly accounted for.
The original motion called for a five-year agreement, but councillors objected.
Councillor Chris Braney said such a term length wouldn’t allow for the next council to develop its own vision with regards to the County’s DMMOs. A shorter term would allow for more transparency and an ongoing dialogue.
“I don’t want to strangle a future council,” he said. “I’m a bit reluctant to support a five-year term.”
A number of councillors asked about financial disclosures from StayPEC. Councillor Phil St. Jean asked about a financial report from StayPEC that has yet to make it to the horseshoe.
“When will Council get to see that?” he asked Ms. Snespts. “They have an obligation to the community and to council as part of receiving MAT funds. We have a responsibility to ensure that any agreements we have with organizations like that, there’s financial accountability.”
The Director assured Council that StayPEC is satisfying the terms of its financial accountability agreement, but that staff can invite it to present to Council as VTC has since its inception. Councillor Bill Roberts made it clear Council needed a full account of where its DMMOS were spending municipal money.
“I really want to see the books. I want the public to see the books. I want council to see the books. And I want STayPEC at the podium making a presentation and with something more insistent than an invitation,” he remarked.
The new agreement is up for ratification at the January 9 Council meeting.
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