Teamwork With Other Provinces, Industries Help In Golf’s HST Protest

This week’s blogs have focused on the growing resentment of the Harmonized Sales Tax in the golf industry, but obviously, the introduction of the HST in British Columbia and Ontario, and probably soon to come in other provinces, affects other industries, as well.

It would be a mistake for golf to feel isolated in its quest to voice its opposition to the HST and, even though thousands of miles separate Ontario and B.C., those two provinces face similar challenges that other regions should take note for the future.

So information and strategies shared between the provinces within golf and with associations representing other industries can be beneficial for the common cause.

Doug Ferne, regional director of the B.C. chapter of the National Golf Course Owners Association has been working with other groups representing hotels, restaurants and club managers, among others.

“Most of the associations are quite upset,” said Ferne. “Specifically, each association is a little bit upset on the impact it will have. We’ve had a lot of queries from our members.”

A challenge certainly unique to golf is that the 2009 season is coming to an end and many golf facilities will not see members or clients until next year, which will give them little time to warn members and consumers about the tax, which is set to kick in July 1.

“It’s given a number of facilities a little bit of a quandary on the impact that it will have and how they may go about implementing it,” said Ferne, adding that an extra seven per cent on a $10,000 membership in his province is a lot of money and could cause bitter reaction.

So, do golf course operators and other facilities then eat the extra cost in order to soothe the customer which, according to Ferne, “a lot are leery of doing because they are already at bargain price figures, or do they just add it on, just like gasoline is done – okay, here’s the price of the fuel and here’s the extra taxes.

“They want to make sure that information is available and relayed to their members and general public and consumers that the additional fee is not just going directly into their pockets,” said Ferne, who will deal with the HST at a chapter meeting on Wed., Nov. 11.

That meeting will take place prior to the start of the Golf Business Canada Conference and Trade Show, Nov. 11-13 at Vancouver’s Westin Bayshore Hotel.

That event will draw NGCOA members and golf course representatives from across Canada and Ferne says all are welcome with the HST being the main topic.

“I’ll be bringing in a few people to speak to our members, specifically on the HST, what it’s implications will be and what effect it will have,” said Ferne.

“That’s what we really want to focus on out here is to join the other associations in expressing our concern and utilizing the great piece of information the economic impact study that came out on what golf brings, nationally and provincially,” said Ferne.

The conomic impact study to which Ferne refers was introduced by the National Allied Golf Association in August and it shows a strong impact by the golf industry in terms of employment and taxes generated, among other aspects of the report.

“The addition of an eight per cent tax on green fees and golf memberships will significantly reduce the number of rounds played, therefore affecting the positive impact the Canadian golf industry has on the economy,” said Shawn Hunter, the NGCOA’s regional director for the Eastern Ontario/Outaouais chapter.

“The (Ontario Harmonized Sales Tax) will have negative repercussions for golf courses, their employees, their members, their daily fee player and the overall growth of the game of golf,” added Hunter in an e-mail.

“Golf is a sport for Canadians of all ages to play together to increase their daily physical activity and improve their overall health. The game of golf is played by an estimated 2.32-million resident golfers in Ontario at over 840 golf facilities,” he added.

Hunter says the NGCOA has been in touch with the Sport and Recreation Harmonizing Tax Coalition and the Tourism Association of Ontario to discuss how the course owners can work together with those groups to inform the public and politicians on how the tax will negatively affect the recreation and tourism industries.

The Sport and Recreation Harmonizing Tax Coalition consists of Parks and Recreation Ontario, the Ontario Recreation Facilities Association, Sports4Ontario, Sport Alliance of Ontario and Sport Matters Group, according to Hunter.

He adds that group is in the early stages of soliciting participation by other provincial sports and recreation interest groups that are concerned about a negative impact on participation levels due to the HST.

Besides working with other associations, Hunter also encourages members to make their feelings known through or link up their websites to a couple of opposition party petitions, including www.unfairtaxgrab.com, or www.daltonsalestax.com.

As well, Hunter points out that a couple of Ontario golf courses mentioned here earlier this week have online petitions at www.innerkiphighlands.com/hst and www.canadiangolfclub/HSTpetition.aro.

“Is it too late to stop it?” said Hunter. “Possibly, but until it comes into force on July 1, 2010, there is still a possibility for us to make Ontario residents aware of the negative impact it will have on them.

“Immediate public outcry to galvanize local politicians is the only hope we have to halt its implementation.”

That means a team effort, including golf facilities from different provinces and associations from different industries joining in a common cause.

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