Cambridge Chamber of Commerce

As pandemic restrictions continue to lift in Ontario, the urge to get away is growing stronger.

 

To encourage Ontarians to explore their own ‘backyards’, the Province unveiled its Staycation Tax Credit for 2022 earlier this year in hopes of inspiring residents to not only travel but provide some much-needed boost to the hospitality sector.

 

“Attractions, hotels and restaurants have been extremely hit hard these past two years and could truly appreciate any support,” says Joe Hall, General Manager of Hospitality at Cambridge Hotel & Conference Centre. “This initiative is a great way for families to look within the province for stay packages and get 20% back at the end of the year.”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The credit – which covers accommodation expenses for hotels, motels, resorts, lodges, bed-and-breakfasts, cottages, and campgrounds – does not cover tourist attractions or restaurants.

 

However, Vanessa Stevenson, General Manager of Homewood Suites by Hilton Cambridge/Waterloo, says most hotels in Waterloo Region offer stay packages that provide spinoff to other hospitality-based businesses.

 

“If you’re going to take advantage of the credit you can always lean toward a hotel that offers these packages,” she says, referring to places that can provide theatre tickets, or restaurant deals. “So at least you’re benefitting businesses beyond just that hotel and hopefully helping the community and the tourism industry to get back on its feet.”

 

Vanessa says her industry lobbied hard for the credit and was pleased the Government of Ontario introduced its as of December 31, 2022. She says it would have been even more helpful if the tax credit could have been targeted to boost destination areas specifically outside the more obvious ones, like Toronto, Niagara Falls, Muskoka, and Ottawa.

 

“But I understand from a processing perspective it wouldn’t be feasible,” she says, noting tourist regions like ours will still benefit from tourists travelling from these popular spots.

 

The credit itself – which does not apply to business travel or leisure stays longer than a month in Ontario - can only be claimed by one member per family and of the eligible accommodation expenses, 20% (which translates into $200 per individual or double that as a family) can be claimed. As well, eligible expenses of up to $1,000 as an individual or $2,000 if you have a spouse, common-law partner or eligible children can be claimed.

 

To process any claims, detailed receipts of any eligible expenses are required. These include: the location of the accommodation; the amount of that can reasonably considered to be for the accommodation of a stay; GST/HST paid; date of stay; and name of payor.

 

Jessica Reuel, Senior Accountant with RLB Chartered Professional Accountants, says the amount of detailed information required may be the reason the tax credit was not extended to other hospitality businesses.

 

“At a hotel you receive a full listing of information and an email confirmation,” she says, adding it’s unclear if the tax credit will be extended beyond 2022. “I think it all depends on how many people will take advantage of it this year. Everybody needs a break.”

 

Vanessa agrees and says encouraging people to travel, especially in April and May, may be difficult. 

 

“It’s been very difficult to market travel within our province when we haven’t been open due to restrictions,” she says, explaining summer travel is easier for people to support since COVID-19 numbers dropped the last two summers. “I think people are aware of the tax credit but have not connected the dots in terms of the practical sense of using it.”

 

However, Joe says he’s optimistic things are starting to improve for his sector and hopes the new credit will help.

 

“Since the recent announcement in January, we have seen business starting to pick up and we are confident with the lift of the vaccine passports (March 1) we will continue to see an uprise in business getting us back to 2019 numbers,” he says, noting the struggle his sector has faced. “We are confident 2022 will be the year of rebound.”

 

Vanessa says it would be great to see the tax credit expanded to become a federal initiative, which would be a boost to the travel industry nationwide.

 

“At some point, as much as we want people to spend their money here in Ontario, the need to leave is going to be strong,” she says.

 

To learn more about the Staycation Tax Credit, visit: https://bit.ly/3uWgqzs

 

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