DMF Legislation Update: What's New for Members

The Alberta Hotel and Lodging Association (AHLA) advocated for a destination marketing system that works for hotels, earns guest trust, and supports strong local destinations. By working together through the AHLA, our sector has helped shape legislation that protects hotel choice while strengthening the integrity of destination marketing. The core point is this: Bill 16 Traveller Protection and Destination Development Act keeps destination marketing fees voluntary and industry-driven, while putting clear structure and accountability around how those fees are collected and used.

 

• Destination marketing fees remain voluntary - each hotel continues to decide whether to charge a DMF.
• Only one approved DMF and one approved destination marketing organization will be designated per community. AHLA advocated for this to prevent fragmentation and duplication.
• DMF funds are not controlled or administered by any level of government.
• A verified third-party trustee will now be mandatory, and 100% of DMF revenue must flow through that trustee to ensure funds are held in trust and used as intended.
• Clear governance, transparency, and reporting requirements for DMFs and DMOs are built into the framework to prevent misuse and build business and consumer confidence.
• DMFs must be reinvested locally, where they are generated, to deliver proven and measurable benefits to participating businesses.
• Fees must be clearly disclosed to guests at the time of booking, supporting transparency and consumer trust.
• The detailed rules that govern eligible uses of DMFs, reporting standards, and compliance will be set out in regulation, allowing flexibility while maintaining a high level of accountability to those who contribute.

 

These measures reflect long-standing AHLA member positions and reinforce the value of hotels acting collectively through AHLA to influence outcomes that no single property could secure on its own.

The Act also provides a transition period, through December 31, 2026, so existing DMF and DMO structures have time to align with the new requirements once regulations are finalized, which are expected in late spring or early summer. The legislation will come into force and be law on January 31, 2027.

The AHLA will continue to monitor this process and advocate on your behalf where necessary.

 

Please take the following steps:

• Review your current DMF and trustee arrangements against the new framework.
• Watch for AHLA updates as regulations are released and application details are confirmed.
• Share questions, concerns, or operational impacts with us so we can inform our ongoing work with government.

 

If you have any questions, please reach out to Laurie Chandler at lchandler@ahla.ca or Tracy Douglas at tdblowers@ahla.ca.