THUNDER BAY – The controversial letter sign proposed for Thunder Bay’s waterfront took a blow Monday as the city’s tourism manager came out against it, citing industry feedback.
Paul Pepe, the manager of Tourism Thunder Bay, made the comments while presenting the agency’s annual review to city council on Monday, after Coun. Peng You asked for his opinion as a tourism professional.
“The feeling of the industry that’s given me feedback is… it’s something that [would be] nice when our tourism economy is thriving, but right now we should be focusing our investments on initiatives that can stimulate quick recovery and quick relief,” Pepe said.
Pepe outlined hundreds of millions of dollars in estimated losses to the region's tourism and accommodation sectors during his presentation, saying full recovery could take years.
Councillors have spent hours in debate over the sign, initially endorsing it on a 7-6 vote in September, authorizing the use of $100,000 in Municipal Accommodation Tax (MAT) dollars, before reversing course in October, punting the decision to the 2021 budget process, which is ongoing.
Proponents argued the project could help draw cross-country travellers off the highway and into the downtown, and would be a general boon for the city’s brand. Similar signs have proven popular elsewhere, with Toronto’s estimated to be the second most photographed location in the city, after the CN Tower.
However, other councillors balked at its rough budget of $150,000, arguing the city was struggling to maintain existing attractions like the conservatory, even before the financial pressures of the COVID-19 pandemic.
Pepe’s remarks drew criticism from Coun. Shelby Ch’ng, who has championed the sign as chair of the city’s 50th anniversary committee, which put it forward as a legacy project to mark the milestone.
Ch’ng expressed clear frustration at the amount of criticism the project had faced, and disappointment that concerns had not been expressed directly to her.
“I’m a little confused about your comments," she responded to Pepe, "considering last April you were very enthusiastic about the sign, which prompted me to put a motion forward to council."
“Fast forward to today, you’re no longer enthusiastic about the sign, [and] you didn’t talk to me about that.”
Pepe noted the situation for local operators had become more grim since April.
That meant MAT tax dollars – earned through a four per cent surcharge at on short-term stays in the city, and meant to promote tourism efforts – should be focused on short-term relief efforts, he said.
That could include propping up events and festivals as local businesses – usually major sponsors – limit spending, he said. Organizers can apply for MAT funds to cover up to 25 per cent of costs.
“I think for a lot of small businesses that are existing on government liquidity and labour programs, and just eking by – they don’t really see how [the sign] would benefit the return of the tourism sector,” Pepe said.
However, Pepe emphasized he supported the sign in principle, saying it could be a valuable addition to the waterfront.
“It’s a value-added attraction for people that are down there – there’s certainly an earned media value, it’s Instagrammable,” he said. “But right now, there are incredibly pressing economic issues facing the sector."
A final decision on funding for the sign is set to be made during the city’s 2021 budget process, which concludes Feb. 8.
