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NEWSMAKERS 2014: A resolution between hospitality association and City of Penticton

Image Credit: compilation/Jennifer Stahn
January 01, 2015 - 2:33 PM

This year has finally brought a resolution to the dispute between the City of Penticton and the Penticton Hospitality Association. It took a B.C. Supreme Court decision, $42,000 of taxpayer-funded legal fees for the city, delays in spending for tourism promotion, and looking silly to the public at large, but yes, a resolution.

And that’s good enough for runner-up as newsmaker of the year for 2014.

The one good thing about going to court is we finally got a chance to get the full story from each side. There we found out just how difficult it is to market Penticton by spending $400,000 every year from taxes collected on hotel and motel room rates.

Turns out the city and the hospitality association never did get along; they’ve been fighting since the tax revenues hit the coffers in 2012. According to the city, the in-fighting, accumulating funds and poor record-keeping jeopardized the whole fund. It all came down to two differing and conflicting strategies on how best to boost tourism in the region.

The judge reinforced the PHA’s contract and both sides appear to be moving forward. Which is good, because they have nearly three more years of working together.

To contact the reporter for this story, email Steve Arstad at or call 250-488-3065. To contact the editor, email or call 250-718-2724.

News from © InfoTel News Ltd, 2015
InfoTel News Ltd

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