In a move to help boost tourism, the provincial government is proposing a "staycation" tax credit, encouraging residents to explore what Ontario has to offer.
According to a recent announcement by the Ontario government, if travellers spend a night at an eligible accommodation (like a hotel, motel, bed and breakfast, cottage or campground) somewhere in the province between January 1 and December 31, 2022, they would be eligible for a personal income tax credit.
That tax credit works out to be 20 per cent — for individuals up to a maximum of $1,000, and for families, the threshold is $2,000. That means a credit of $200 or $400, respectively.
The tax credit proposal is part of the Ford government's Fall Economic Statement. The 2021 Ontario Economic Outlook and Fiscal Review: Build Ontario is designed to "help the tourism and hospitality sectors recover, and encourage Ontario families to explore the province." It states "the government is proposing a new temporary Ontario Staycation Tax Credit for 2022. The credit would provide an estimated $270 million to support over one-and-a-half million families to further discover Ontario."
Nipissing MPP Vic Fedeli says, "The new credit would build on a wide range of government initiatives designed to help these sectors through the COVID‐19 pandemic, including the Ontario Tourism Recovery Program and the Ontario Tourism and Travel Small Business Support Grant.
"By making tourism in the province more affordable, the credit would help encourage people to explore Ontario while keeping tourism dollars right here at home."
According to a Village Media report, for tourism operators across Ontario, recovering from the impacts of COVID-19 is a work in progress, and something they will continue to work on for quite some time.
In the nation's capital, for instance, Ottawa Tourism spokesperson Jantine Van Kregten is hopeful 2022 will turn things around for the city’s tourism.
“It’s been a long winding road to get here since the pandemic started,” she said. “We’re definitely seeing some signs of recovery, but we’re not out of the woods yet.”
“It’s one of the measures they’re taking to encourage people to travel within the province and to support tourism operators who have been hard hit by the pandemic.”
What’s really attractive about the proposal, Kregten added, is that it’s an offer that’s available all year round, making it advantageous for both summer and winter tourism destinations.
Ongoing public health measures restricted travel and business operations this year and introducing a tax credit encouraging travel would have conflicted with public health advice, Fedeli advises. Since the pandemic began, the government has invested more than $800 million in support for the tourism, culture, sport, and recreation sectors, including this new, temporary Ontario Staycation Tax Credit for the 2022 tax year.
With files from Dani-Elle Dube
