At a council meeting on September 24, Whistler councillors received and discussed the quarterly budget report by the Chief Financial Officer, Carlee Price.
Tourism revenues, a key source of municipal income, have declined, impacting funds collected through the Municipal and Regional District Tax (MRDT), commonly known as the Hotel Tax. The report showed a 5.3% drop in the first quarter of 2024 compared to the same period in 2023, followed by a sharper 10.1% decline in the second quarter.
However, the municipality offset this shortfall with increased revenues from other sources, such as pay parking and Meadow Park Sports Centre. As a result, total revenues for the first half of the fiscal year remain on target, and expenses are tracking closely to budget, sitting at 97% of projected expenditures. Municipal project spending reached $11 million of the allocated $43.5 million for the year.
One potential concern CFO Price highlighted is the effect of recent interest rate cuts. While lower rates reduce debt payments, they also result in less interest earned on savings and capital reserves. Whistler earned approximately $1.2 million in interest in the second quarter.
Councillor Cathy Jewett inquired whether strong summer visitor traffic could offset the earlier declines. Price responded cautiously: “July and August are critical months for MRDT, but we don’t yet have those figures. Based on room bookings and the Average Daily Rate for hotel rooms, it’s not looking overly promising, but it’s not catastrophic either.”
Councillor De Jong pointed out that, despite lower visitor numbers, Whistler fared better than other areas of the province, which were heavily impacted by wildfires and smoke during the summer. “We were very lucky there,” he said. Looking ahead, De Jong expressed optimism for the upcoming winter season, noting that early forecasts predict good snow conditions, which could help reverse the current downward trend in tourism.