The Alberta government plans to create new rules to ensure tourism fees charged at hotels, motels and inns go to the proper overarching marketing organization and are not pocketed for individual profit. 

The province introduced Bill 16, the Traveller Protection and Destination Development Act, on Wednesday and also plans to amend the Consumer Protection Act to protect consumers from what the government says are sometimes hidden and misleading fees. 

The government said most businesses that charge a destination marketing fee operate in good faith but some keep them for profit.

The provincial government said some lodgings are currently pocketing the destination marketing fees, which are meant to go toward a formal umbrella organization like Explore Edmonton or Tourism Jasper.

The government said when businesses keep the fees for profit, it undermines the fees’ purpose, which is to help promote their regions to tourists.

The legislation would require businesses to show the full price of a room at booking and insist  100 per cent of the fees go toward the designated marketing organization. 

“This legislation makes sure people who are paying these fees know where their dollars are going, creating the transparency and accountability that both businesses and their customers need,” Tourism and Sport Minister Andrew Boitchenko said in a news release.  

The fees can only be charged in areas with a designated destination marketing organization or association. If no designated organization is in place, the marketing fee cannot be charged, the province said. 

Tracy Douglas-Blowers, president and CEO of the Alberta Hotel and Lodging Association, said she supports the legislation and added that the province consulted affected groups extensively.

“Hotels care deeply about how Alberta is marketed, how visitors experience our communities and how trust is maintained with both our guests and our marketing partners,” she said during a media availability. 

The hotel organization has long advocated for the framework, Douglas-Blowers said. 

“We’re pleased to see freedom for hotels to choose whether they participate in a local destination marketing fee, that the model remains industry-driven with local control and reinvestment to support measurable growth of the visitor economy.”

The marketing fees are typically between three and six per cent of the cost of a room, and are separate from the provincial tourism levy, which is four per cent of the accommodation price.

Boitchenko noted that the legislation adds to the province’s “bold tourism strategy” which it launched in 2024. In 2025, the province took in $15 billion in visitor spending. 

MLAs are expected to vote on the bill this legislative session that ends in mid-May. 

The province will allow a transition period until Dec. 31, 2026, to give businesses and organizations time to comply.