City deflects request to double tourism funding, explores fundamental changes

Tourism in Saskatoon could go through some changes as the city deflected its request for a funding boost with a proposal to merge with a separate organization.

City council tossed aside a request from Discover Saskatoon to nearly double its city funding for the rest of the year and instead is looking at whole-hearted changes to the agreement between the city and its tourism agency.

“This is not a discussion about our contract. It is not a discussion about tourism. This is a discussion about whether Saskatoon intends to actively compete for people, events and external dollars, or whether we quietly step back and assume that it will just happen on its own,” Discover Saskatoon CEO Stephanie Pocha said.

At the city’s governance and priorities committee meeting on Tuesday, Discover Saskatoon requested $1,208,000 funding in 2026, up from $619,000 in 2025 — an increase of 95 per cent.

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City administration proposed a number of alternatives, including a three per cent inflationary increase until 2029, a $100,000 payment if certain performance targets are met with the city also boosting the special events reserve by $50,000 every year to help the city bid for large events like the Brier, music festivals and other conferences.

“I think it’s measured. It makes sense,” Mayor Cynthia Block said of the funding approval.

“It’s supporting the visitor economy and making sure that we don’t get left out of important opportunities going forward, or at least giving us a better leg up to make sure that we don’t.”

The total funding of $937,673 — split between a core contribution of $637,673 and a major special events contribution of $300,000 — accounts for less than 15 per cent of Discover Saskatoon’s revenue. The main source of funding for Discover Saskatoon is a destination marketing fund, which was 71 per cent of revenues in 2024.

A destination marketing fund is a voluntary fee that hotels may charge their guests on the room rate. In Saskatoon, that rate is set at 3 per cent by participating hotels. Not all Saskatoon hotels participate in the fund, which the city manager sees as unfair.

“Right now, it’s a very unfair market because the ones who are voluntarily participating are carrying water for everybody,” Jeff Jorgenson said.

The city says the marketing fund is unfair and hopes to change that policy in the future, provided provincial legislation can be changed to allow for a mandatory accommodation tax.

Saskatchewan is currently the only province which does not have some form of an accommodation tax.

Another way of saving money proposed by administration is looking at governance changes to Discover Saskatoon, even though Discover Saskatoon is not controlled by the city.

The city wants to explore amalgamation with other local organizations with similar functions, most notably SREDA, the Saskatoon Regional Economic Development Authority.

While SREDA’s goal is to grow the local economy, opponents of the amalgamation at council chambers on Tuesday said it would result in modest savings that should be avoided.

“We’re still looking at a recommendation before council that takes two dissimilar organizations and puts them together,” Joan Steckhan, the chair of Discover Saskatoon said.

“Really, you’re talking about a cheaper photocopier lease and I’m not trying to be facetious, but that really is where you’re looking at for efficiencies.”

Pocha said while the two organizations work alongside each other often, they are too different to become one.

“The role of SREDA and Discover Saskatoon are deeply collaborative — they are synergistic,” Pocha said. “They are not the same.”

A report from administration says Winnipeg is the only city in Canada which has combined economic development and tourism into one agency.

Ward 4 Coun. Troy Davies was pleased the city was able to add to its major special events reserve, to help avoid becoming a “flyover city,” while hotel operators wished to see additional funding provided for tourism.

“When funding becomes uncertain or performance contingent, long-cycle sales stall, marketing campaigns weaken or they disappear,” said Vanessa Kosteroski, the chair of Saskatoon Destination Marketing Hotels Inc.