Club Med Charlevoix charges less than 3.5% in accommodation tax

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Club Med Charlevoix charges less than 3.5% in lodging tax

Club Med Québec Charlevoix at its inauguration, November 29, 2021 (File photo)

Tourisme Charlevoix is ​​surprised by note that Club Med still does not charge the 3.5% accommodation tax on its nights sold in its Massif de Charlevoix facilities. Instead, guests are charged $3.50 for each night spent on the mountain.

It's not illegal, I want to make it clear. It's just that it's surprising, comments the president and CEO of Tourisme Charlevoix, Mitchell Dion.

Friday morning, Le Journal de Québec revealed that the Chinese company that owns the Club Med brand used an intermediary to book packages. A provision in the law allows intermediaries to charge $3.50 per night per room rather than the 3.5% common industry-wide.

In a test run on Club Med's online booking platform, the lodging tax charged for a multi-thousand dollar stay was indeed well under 3.5%.

In the event that the supply of an accommodation unit is made by an intermediary, the customer must pay a specific tax equal to $3.50 per night for each unit, confirms Revenu Québec in an email response.

Club Med sells almost all of its rooms through Club Med Sales Canada, the equivalent of a travel agency, so it only charges $3.50 a night, Mitchell said. Dion.

The CEO of Tourisme Charlevoix points out that the tax on lodging is given directly to organizations, like his, that promote the regions of Quebec. For us, that represents about three million dollars a year and it's really the tool we use to promote the region. It is increasingly a tool that is used to financially support tourism businesses in their development projects.

Mitchell Dion would have liked Club Med to adopt the operating model Quebec outfitters. In the case of the sale of fishing packages, outfitters make an estimate of what the accommodation component costs and apply the 3.5% tax on this amount.

Read also : Club Med de Charlevoix does not collect tax on lodging

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