February 26th, 2026

Province taking aim at hidden tourist fees and destination marketing profits

By MEDICINE HAT NEWS on February 26, 2026.

The view from the Fairmont Banff Springs. Changes made by this legislation will prohibit hidden fees for tourists booking accommodations and will create guidelines for the collection and use of destination marketing fees.--News photo Zoe Mason

newsdesk@medicinehatnews.com

The Alberta government is introducing legislation aiming to crack down on hidden fees to protect tourists and prevent businesses from pocketing destination marketing fees.

The proposed legislation will require full price transparency at booking and impose uniform guidelines for the voluntary collection and reinvestment of destination marketing fees.

Tracy Douglas, president and CEO Alberta Hotel and Lodging Association, said at a press conference Wednesday that industry partners were consulted closely in the formulation of this legislation.

“That engagement has resulted in a framework that reflects the realities of our sector and the diversity of communities across our province,” said Douglas.

If passed, the amendment will require accommodation providers to disclose the full price of overnight accommodations inclusive of all mandatory fees and charges.

While many tourism businesses voluntarily charge customers a destination marketing fee, some businesses have historically retained those proceeds for profit.

The new legislation will require 100 per cent of that fee to be used to explicitly support local destination marketing and development.

It will remain voluntary and industry-led.

CEO of Tourism Calgary Alicia Reynolds says while other jurisdictions have imposed a tax in place of the DMF, Alberta’s voluntary model is a distinct approach.

“I think it’s really important to lead through the lens of what makes Alberta unique, and that Alberta advantage continues to see us have the lowest fees of any major market,” she said.

Rachel Ludwig, CEO of Tourism Canmore Kananaskis, says industry partners have long advocated for clearer rules around DMFs.

Alberta is behind similar jurisdictions in bringing in these kinds of rules. Minister of Tourism Sport Andrew Boitchenko says that’s given Alberta an advantage in the design of the legislation.

“We can learn from other jurisdictions and pick up what worked and what didn’t work well for them. So we put together the structure from across other jurisdictions to make sure that this is flawless,” he said.

The legislation will also establish clear requirements for the operation of destination marketing organizations. Responsibility for determining local DMF rates will rest with the region.

Visitor spending in Alberta grew six per cent year-over-year in 2025 to reach $15.2 billion.

The government is aiming to bring in $25 billion in visitor spending by 2035.

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