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HAC concerns for government decision to cut visitor rebate program
The Hotel Association of Canada (HAC) called for the withdrawal of the decision to cut the GST/HST Visitor Rebate Program as announced by the Federal Government on Monday, September 25. “The government is trying to save $78 million, but they are losing $218 million,” said HAC President Tony Pollard.

The HAC’s greatest concern with this proposed elimination of the GST/HST Rebate Program involves the convention, tour and group business. The total value of this business in Canada in 2005 from outside the country is in excess of $1.28 billion. This proposed program cut puts this at very serious risk by increasing the cost to do business in Canada by six per cent.

“The government is shooting itself in the foot by jeopardizing federal, provincial and municipal tax revenues of $496 million, $218.5 million of which goes directly to the federal level,” stated Pollard.

The HAC is dismayed by the government’s apparent lack of concern and support for the Canadian lodging, travel and tourism sector.

“The new Government of Canada prides itself on its new competitiveness agenda. What they have done is a complete contradiction by greatly reducing our ability to compete in global markets,” said Pollard. Theodore Koumelis - Thursday, October 19, 2006