City of Charlottetown increasing tourism levy in hopes of growing the industry

Starting next year, visitors to Charlottetown will be paying a bit more to stay overnight. 

The City of Charlottetown is upping the tourism levy at the start of 2026, from three per cent to four per cent.

For many who work in the tourism industry, the increase is welcome news.

“We’re hoping it’ll allow us to continue with our our momentum around tourism,” said John Cudmore, general manager of the Holman Grand Hotel and chair of the Hotel Association of Prince Edward Island. 

The levy applies to short-term rentals, bed and breakfast units, and hotels. The fees collected get split between three organizations: Discover Charlottetown, Meet P.E.I., and the Special Events Reserve Fund (SERF). The money goes toward promoting events, conferences, and tourism in Charlottetown.

“The levy will create in the range [of] an additional $600,000,” said Wayne Long, the manager of economic growth and attraction for the City of Charlottetown.

Meet P.E.I.’s executive director, Susan Freeman, said the additional funds are “fantastic” news for her organization. 

“Our mandate is to attract and promote Prince Edward Island as a business event and conference destination, and this market, this sector is very competitive,” she said.

“So for us to have some increased funds in order to do so is really key for us over the next coming years.”

Freeman said that this will help the industry, while not taking from Charlottetown residents.

“We of course understand that, you know, more taxes from the city and people that live in the city are not great,” she said. “So to have industry be able to support us with this additional funding is very important.”

‘We need to keep up with the times’

The levy was first put in place in 2008 at two per cent, and in 2011 the rate increased to three per cent.

This latest increase was put forward to Charlottetown’s city council by members of the tourism industry. 

“The Hotel Association, our board, brought it to the table…thinking it’s time for an increase,” said Cudmore, noting that since the last increase, the costs of marketing and advertising have increased. “We need to keep up with the times.”

Cudmore said levies are common across Canada and throughout the world, and he doesn’t think the extra one per cent will be much of an issue for visitors to the Island.

“I think it’s just part of the culture now, people expect it, it’s another amount that you’re paying for travel.”

He said that since the introduction of this levy, the city has seen more tourism.

“We’re seeing more visitors and we believe it’s due to the additional funds being spent to market and promote Charlottetown and Prince Edward Island.”