Following the proposal of a 2020 Provincial budget that would cut spending on tourism by $8M, the Government has put forth as amendment that would permit municipalities to enact mandatory hotel bed taxes.

Proponents say this plan has the advantage of giving local jurisdictions the ability to raise money to promote themselves.

Opponents say the combination of Provincial budget cut and municipal bed tax measure will create a shortfall in funding of tourism marketing for regions.

And the NB Hotel Association has expressed concern that municipalities will begin labeling all manner of routine operational spending as being in support of tourism, fundable by the bed tax.

Earlier this month, the Provincial government unexpectedly rejected a proposal for a Province-wide bed tax, which the Hotel Association had supported.