Ontario Staycation Credit Urged

2025 is shaping up to be a wild time in the travel industry. Data show Canadians are shifting their plans away from the U.S. While some are instead heading farther afield, to the Caribbean and Europe, some are opting to explore the far-flung regions of our own beautiful country. 

The other group, perhaps due to caution over a precarious economic outlook or job insecurity, are not travelling at all. 

In Ontario, hotels have also seen fewer bookings and more cancellations since the beginning of the trade war, according to Jasveen Rattan, director of policy and government relations at the Ontario Restaurant, Hotel and Motel Association (ORHMA).

Rattan was one of the signatories on a letter issued to Ontario Premier Doug Ford, Tourism Minister Stan Cho, and Finance Minister Peter Bethlenfalvy, urging a reinstatement of a “staycation” tax credit.

The credit was created during the pandemic as a way to support provincial hospitality businesses. Ontarians could claim a return of 20 percent on Ontario accommodation expenses, up to $1000 per person or $2000 per family.

ORHMA states in the letter "Given current economic uncertainties, reviving this program would yield significant benefits for Ontario businesses, workers, and residents. "

There is industry support for the idea. Andrew Weir, CEO of Destination Toronto, indicated that domestic tourism, already a major driver for the city, is going to be more important this year than they had anticipated six months ago. 

Aileen Heatherington, general manager of the Drake Hotel on Queen Street W., is also supportive of the initiative. 

"Having a staycation tax credit would encourage people to spend locally, invest in local businesses and it would be really important for our economy," Heatherington told the CBC. "The hospitality industry employs a lot of people and it relies on tourists and visitors to sustain itself," she said. "As summer approaches, we'd love to be able to take advantage of this opportunity and turn it into something positive for everyone.”

When asked if the province would consider reinstating the credit, ministry of tourism spokesperson Denelle Balfour said the government “"will continually monitor the daily developments regarding tariffs and the potential impact on our tourism and culture sector."

Topics From This Article to Explore