[ ♪♪ ]
>> Asha: This is Marketplace.
We're back on the case
in Niagara Falls, Ontario.
>> And it begins.
Going undercover
for a third time.
Why?
>> Hello, Marketplace.
>> Hi, Marketplace.
>> Hi, Marketplace.
>> Asha: We've been flooded
with comments from
across the country.
>> We hate Niagara's
tourism fee.
>> These two fees,
they were charging in
Niagara Falls are a scam.
>> It's just plain gouging.
[ ♪♪ ]
>> Asha: We get a lot of
complaints on our show,
but nothing compares to how you
feel about that tourism fee some
Niagara businesses are tacking
on to your bill.
It's called many things.
A destination marketing fee,
DMF.
A tourism improvement fee, TIF.
A Niagara Falls destination fee,
NFDF.
>> It's sneaky, it's shady,
it's deceiving.
>> It just appears
to be a cash grab.
>> Asha: Last time we learned
this fee was voluntary.
You could have it removed.
But now you're telling us things
have gone from bad to worse
so once again,
we're in the tourist capital
of the world.
Home to 14 million
visitors a year.
>> Here's the recorder.
>> Getting wired up
with hidden cameras.
>> Ready to do this again?
>> Yeah, let's do it.
[ ♪♪ ]
>> Asha: And hitting up some of
the same hot spots we checked
out before to see what we find.
First on the list,
the Skylon Tower,
a popular tourist attraction.
>> Asha: This employee quickly
offers to remove it.
And when we ask about whether
they tell people it's voluntary.
>> Asha: Listen to what happens
next at the IHOP.
They used to charge 3%
and then last year,
they hiked the fee to 5%.
What's the deal now?
>> Asha: Yep, we have to pay it.
>> Asha: When did things change?
>> Asha: Not only is the
fee mandatory at this location,
but they've also hiked
it again to 6%.
>> Asha: You can say that again.
Seems like we're getting
mixed messages, and so are you.
>> One property will charge 10%,
another will charge three.
>> Some say it's voluntary,
others say it's mandatory.
[ ♪♪ ]
>> Asha: Back on our
undercover trip,
what will East Side Mario's
tells us?
>> Asha: But this server doesn't
just leave it at that when it
comes to his thoughts
about the fee.
>> Asha: That's the whole point.
Unlike other cities collecting
the fee, Niagara Falls is the
only place in Canada where
there's no third party
tracking the money.
Local reporter John Law
has been trying to track
it for many years.
Do you have any idea from your
reporting of where
the money is going?
>> I've asked that constantly
and the constant answer is
it's going to fireworks,
it's going to maintenance,
it's going to promotion.
If it's going to all these
places, why can't you direct
it to a group that oversees
spending like that that
makes sure it's going
where it's supposed to?
>> Asha: There's no paper trail.
>> No, there is no paper trail.
And until the province
intervenes and insists
that there's some kind
of accountability or paper trail
for this fee, we can't say
for sure where it's going.
[ ♪♪ ]
>> Asha: Our hidden camera
quest for answers
continues at TGI Friday's.
>> Asha: When we ask where
the money goes here?
>> The key to this fee I found
out is confusion.
Keep people confused so they
don't know what it is
so they don't know what
they're fighting.
>> Asha: We've been to
several hotels,
restaurants, attractions,
there's no consistency.
>> No, I know.
You can walk down one street
in the tourist district,
see some places charge 3%,
some places charge six, seven,
some places don't
charge it at all.
>> Asha: He's right.
Not all businesses in this area
charge the tourism fee.
There are some shops that put up
signs like this.
So there's no confusion at all
for customers.
Seems like Applebee's
has changed its tune.
They used to charge 3%
but it's not on our bill today.
>> Asha: The confusion continues
when we check out at the
Four Points by Sheraton Hotel.
Last year they charged us 5%.
>> Asha: Whoa.
They doubled the fee.
For a two-night stay here,
that's an extra
$20 on top of your bill.
>> Asha: No matter how
hard we try, the employee
at Four Points refuses
to remove it.
[ ♪♪ ]
We reached out to all the
businesses we visited.
No response.
But in the past,
they've reassured us the money
we spend on the fee is
going towards tourism.
John Law is not too
sure about that.
>> Instead of dealing with this
problem that's angering so many
people, it's like they colluded
and doubled down on it which is
not what I expected them to do.
>> Asha: He says the province
needs to act once and for all.
>> At some point they're going
to have to step in because other
cities aren't doing what
Niagara Falls is doing to the
extent we're doing it.
They're going to have to say
enough's enough at some point
because this isn't what--
this isn't what we introduced
this fee for.
This isn't what it was
supposed to be.
>> Asha: Where is your
money going?
>> It is not led by my ministry,
it is not driven by my ministry,
it is not a program
of my ministry.
>> It's not a municipal fee.
>> We're getting mixed messages.
>> Asha: Who's passing the buck
on your Marketplace.
>> Asha: Your money,
your Marketplace.
[ ♪♪ ]
We're investigating the
tourism fee that's tacked on to
your bill in Niagara Falls.
With no public oversight into
how the money is collected or
where it's going, you want
answers and so do we.
[ ♪♪ ]
So who's responsible for
this fee?
Turns out it's Ontario's
Ministry of Tourism,
Culture and Sport.
It's allowed businesses in
Niagara Falls to charge the fee
and police themselves.
That's why some of you have been
complaining to them.
Demanding action.
For weeks, we've asked for an
on-camera interview with
Minister Eleanor McMahon
but she says, no,
to our request more than once.
We find out she's hosting a
family day skate and catch up
with her there.
>> I'm Asha Tomlinson
with CBC Marketplace.
>> I didn't know
you were coming.
Did you contact my
press secretary?
>> We contacted your press
secretary several times.
We just want to talk to you.
>> Would you mind?
>> Would you speak
with us afterwards?
>> I'll be with a moment,
how's that?
>> I know you're filming so I'd
be really happy to talk to you.
>> Okay, we'll give
you some time to talk
with your consituent.
>> Okay, that would be great.
[ ♪♪ ]
>> Asha: We wait.
And wait.
[ ♪♪ ]
Nearly three hours later.
She comes out to speak with us.
>> There's something I just need
to clarify right off the bat.
This is not a
provincial government
run initiative, whatsoever.
Our government's priority
is consumer protection.
If consumers and if businesses
in Niagara are not being
transparent and they're not
telling people what the fee
is used for, then not only am
I concerned about that,
then we will engage
and do something about it.
That's really important.
I will reach out to city.
They have not reached out to me.
And if they had, I would tell
them my advice which is to
do what municipalities who have
successful destination
marketing fees in place do,
to take them in
a really transparent way.
>> Asha: There's no paper trail
in Niagara, shouldn't you be
better protecting the consumers?
>> You know what, if there's an
issue with consumer protection,
if businesses in Niagara Falls
are not looking after consumers,
then I want to know about that,
and I am concerned about that.
>> Asha: We've been undercover
twice now, and it is not
transparent and in fact
it's gotten worse.
>> Okay.
>> Asha: Some businesses
have hiked the fee,
others are forcing visitors
to pay this fee.
>> I will tell you again--
>> Asha: With no oversight.
>> This is up to
the municipality,
and the councillors.
>> Asha: So you don't feel that
you have any responsibility to
look into and look into this?
>> I will finish my sentence,
if you will do me the courtesy
allowing me to do that.
You have a job to do.
I'm answering your questions
to the best of my ability.
I am telling you what I know
and here's how it works.
I will say it again.
This is not administered
by my ministry.
It is not led by my ministry.
It is not driven by my ministry.
It is not a program
of my ministry.
I appreciate you bringing
this to our attention
and we'll look into it.
I also have not been contacted
by the municipality so as a
consequence of this,
I will be talking to the
mayor and looking at this.
It is their responsibility to
manage it, to collect it, and to
do it in a responsible way.
>> Asha: She encourages us to
talk to Jim Diodati,
the mayor of Niagara Falls.
So that's exactly what we do.
>> First off, I'll say this.
It's not a municipal fee.
The municipality in no way
can control this, regulate it,
administer it.
We have nothing
to do with the fee.
And obviously the provincial
government has left it
in a permissive type of way
that businesses can
charge it if they like.
>> Asha: I have to tell you
we're getting mixed messages.
You say this is nothing
to do with the municipality.
We spoke with the
Minister of Tourism
on the provincial level,
she says she has nothing
to do with this as well.
In fact, she encouraged us to
talk to you, and I just want to
read some of her quote,
some of what she told us
during our interview.
This is entirely led by the city
and by the tourism authority
in Niagara Falls.
That's just part.
I can go on,
but any reaction to that?
>> It is a concern but when she
says the municipality,
the city per se,
city hall per se,
has zero jurisdiction over this.
We have zero control.
>> Asha: Just to read some more.
>> Yes.
>> Asha: It is their
responsibility to manage it,
to collect it, and to do it
in a responsible way.
>> I got ahold of her,
Minister McMahon,
and I did clear up, the fact
that I said, to be clear,
the city has absolutely
no involvement in--
however if you want to give us
the authority, we're happy to
be involved, and we're happy to
help regulate, administer,
and deal with this.
Until such time, you know,
we're waiting for the province
to either do something or direct
us on how to do something.
>> Asha: After our interview
with the minister, she agrees
it's not up to the mayor
to oversee the fee.
The businesses are supposed to
police themselves but
that's clearly not working.
We've been following this story
for a few years now,
and it seems as though things
have gone from bad to worse.
So we went undercover a few
weeks ago and discovered that
some businesses are now hiking
their fee again, some are saying
that the fee is mandatory,
forcing people to pay,
what do you make of that?
>> I whole-heartedly support
a more transparent,
more accountable way
of dealing with this.
I think definitely it's
confusing to people when
there's different rates,
different charges,
and different explanations.
It would be nice if there's
more consistency as well.
>> Asha: Mayor Diodati says he
and Minister McMahon
have agreed to meet and
discuss some possible solutions
to this problem.
We're going to keep
following this story.
Can we follow up
with you as well?
>> Absolutely.
There's a lot of people
following this with interest.
And at the end of the day our
goal isn't to make this go away.
At the end of the day our goal
is resolution that makes
everyone happy.
>> Asha: Check in this summer?
>> Check in, check in either
undercover or over the covers,
whatever it's going to be,
but check in.
[ Laughter ]
>> Asha: Want a list of who
charges and who doesn't?
Get it at
facebook.com/cbcmarketplace.
