Changes to TIF: Special Meeting of the Lodging Sector

The Tourism Improvement Fee has been in place since 2006 and makes up just over 70% of Banff & Lake Louise Tourism’s (BLLT) total revenue. It is critical to driving demand for the destination, managing its reputation, and supporting long-term resilience.

Recent changes to the Alberta Tourism Levy (ATL) mean that online travel agencies (OTAs) now remit ATL collected directly to the Government of Alberta. This limits hotels’ ability to see how much ATL has been collected on their behalf, making the current TIF model unworkable.

BLLT is proposing to change the TIF formula from 50% of the Alberta Tourism Levy to 2% of Room Revenue. This is a change in mechanics only — not in the amount paid.

No. The amount paid will be the same. Under the current 4% Alberta Tourism Levy, 50% equals 2% of Room Revenue.

The change applies retroactively to October 1, 2024, aligning with the date the Alberta Tourism Levy legislation changes came into effect.

BLLT worked with a Lodging Sector Working Group, which included operators, accountants, members of the Executive Committee, BLLT’s third-party agent (Baker Tilly), and legal counsel.

No. Only the calculation method is changing — reporting and remittance processes will remain the same.

“Room Revenue” means the actual monetary consideration received by a Resident Lodging Sector Member for overnight Lodging excluding:

• GST
• Alberta Tourism Levy
• And all other goods or services not attributable to Lodging alone.

Yes. This is a targeted change. No other structural or financial changes are being introduced.

There are four key steps:

1. Lodging Sector vote (May 1, 2025) *note that this vote includes both Non-Exempt (TIF paying) and Exempt (non-TIF paying) Lodging Members
2. BLLT Board recommendation (May 7, 2025)
3. Full Membership vote on By-law change (June 5, 2025)
4. Update to the Town of Banff’s Business License Bylaw (June, 2025)
5. Contractual Member Contracts (summer, 2025)

No. This change fully decouples the Tourism Improvement Fee (TIF) from the Alberta Tourism Levy (ATL), insulating BLLT and members from future changes to the provincial program. However, the ATL framework will continue to be used to determine what TIF should be applied on.

All TIF-collecting members will move to the new formula: 2% of Room Revenue. Consistency is required across the program

There has been no change in remittance yet. Invoices currently reflect an estimate based on the prior year’s Alberta Tourism Levy amounts. The new calculation will apply at year-end (Sep 30) when actual TIF is reconciled.

Yes — TIF is reconciled at the end of the TIF year (Sep 30) based on actuals.

Contractual Members individual agreements with BLLT will be revised over the summer of 2025 to reflect the changes once they are approved.

We are considering the 2025 TIF year a transition year. Last fall, each property completed a reconciliation of actual TIF collected Oct 1, 2023-Sep 30, 2024 based on 50% of ATL remitted, which determined any over/under payment due (the “true-up”), and provided the base to estimate TIF for Oct 1, 2024 – Sep 30, 2025. In fall of 2025, the actual TIF will be calculated based on 2% of Room Revenue, which will determine the true-up and which will also form the basis for the estimated TIF for 2026.

No. Any change to the TIF rate must be approved by Lodging Sector members, the BLLT Board, the full Membership and the Town of Banff. The same process is required every time.

Within the Town of Banff: No, because the TIF is collected through the Business License Bylaw.

Outside the Town (BLLT Contractual Members): Yes, GST is applied.

Yes. Since Alberta Tourism Levy reports are no longer complete, TIF reviews will now focus solely on Room Revenue.

No. The Tourism Improvement Fee is not a tax — it is a fee collected by agreement.

• $100 Room Revenue
• Add 2% of Room Revenue (TIF) = $2
• Alberta Tourism Levy (4%) and Goods and Services Tax (5%) are calculated on $102
• Total taxes and fees = approximately 11.18%

No. TIF will continue to be paid to the hotels (either directly by the guest, or by the OTA), who will then remit it to BLLT, as has always been the case.

It is based on what the hotel receives — the actual monetary consideration collected by the hotel, not the guest-facing price set by the OTA.

No. This is a single, focused, administrative update to the rate formula to address the change in the ATL legislation. A full funding model review planned for 2028, in alignment with the expiry of the current Municipal Destination Marketing Agreement in place with the Town of Banff.