London hospitality and tourism industry endorse idea to bring staycation tax credit back
Tax credit was well-liked, according to Tourism London and campground owner
Tourism London and members of southwestern Ontario's hospitality industry say they're on board with a push to see the provincial government reinstate a pandemic-era tax credit for Ontarians who plan getaways close to home.
The support comes following a letter penned by the Ontario Restaurant, Hotel and Motel Association (ORHMA), addressed to Premier Doug Ford, Tourism Minister Stan Cho and Finance Minister Peter Bethlenfalvy.
The letter calls on the provincial government to reinstate the Ontario Staycation Tax Credit as a way to help both businesses and residents in the face of the ongoing trade war.
"I would agree with what they're asking," said Cheryl Finn, the general manager of Tourism London. "Certainly, from the perspective of promoting local and encouraging travel [within Canada], it would be a benefit."
The original staycation tax credit was introduced in 2022 to spur pandemic recovery for the tourism, hospitality and culture sectors. It offered a return of 20 per cent on accommodation expenses of up to $1,000 per person or $2,000 per family.
Finn said while the credit was in place, the impacts were plain to see. She said it provided a real boost to local tourism during a difficult time.
She also agreed that the tax credit's return could help at a time when economic uncertainties are working against the hospitality industry as Ontarians look to buckle down and save money.
Finn said the London area is well positioned as a central location that's close enough to other, sometimes larger communities to often be considered for day trips and even overnight stays.
"It's the best place. We have so much to offer, whether it be through culinary, our attractions, our cultural offerings and festival season with Rock the Park, Sunfest and more," Finn said.
Finn also said London's position means people within the city can easily take day trips to nearby beaches or longer trips to provincial parks.
Robert Roy, the owner of nearby campground Bear Lake Experience, said he's all for the idea of the tax credit returning.
Campgrounds were covered as accommodations in the credit's first iteration, and according to Roy, that was top of mind for visitors when it was in place.
"I found it interesting how many people asked for the receipt. It's not something people typically ask for when they're camping," said Roy. "I knew my guests were using the tax credit, which is fantastic because it makes it better for them and for us. Paying tax on the fun stuff that we do in the summers around here can be pretty hard to swallow, right?"
These short trips like camping should be economical," he said.
Roy, who opened the campground in Watford with his wife in 2022, said the return of the tax credit would be good for business, especially in keeping Ontarian money in the province. He said he'd support it even if the trade war with the U.S. wasn't ongoing.
While Bear Lake often attracts people from as far as Toronto, Roy also said he hopes the tax credit could encourage more people to travel to Ontario's southwest.
"If we're talking about the things going on with the U.S., maybe the positive in that could be that it teaches us that there's still lots to see around here."
In response to a request for comment on the letter, a spokesperson for the Ministry of Tourism, Culture and Gaming did not answer whether the return of the tax credit could fit into Premier Doug Ford's plan to protect the province's economy.
"Ontario is dedicated to supporting the tourism sector and protecting our economy," a ministry statement reads. "That is why we have invested nearly $200 million in our tourism sector this fiscal year alone."