Canada's Tourist Industry Demands Tax Break

by Amanda Banks, Tax-News.com, London

29 October 2001

Leading British Columbian resort operators have called upon the federal government to give Canadians a tax break on travel expenses such as air fares and accommodation costs within the country to give Canada's tourist industry a much needed boost.

Pat Corbett, president of Hills Health Ranch, told reporters: 'Difficult times require creative solutions and if there ever was a time to protect the tens of thousands of jobs in Canada's tourism industry, it is now.' In agreement is Nimmo Bay resort owner, Craig Murray, who said: 'It is time for Canadians to realize they don't need to leave their homeland to enjoy the vacation experience of a lifetime.'

Mr Corbett first called for the tax break in 1995 but was ignored by the government. However, the September 11 terrorist attacks in America have resulted in a sharp downturn in tourism around the world and the tax break proposal particularly in the US has been very popular. Currently US lawmakers are looking at the Travel America Now Act 2001 which incorporates a tax credit offering US$500 per person on travel expenses for domestic trips of at least 160km one way and an overnight stay in a hotel.

Tourism Vancouver president Rick Antonson said Corbett's proposal was considerd as unworkable when it was first raised but the government can no longer dismiss the idea. 'The notion of encouraging people to travel when there is travel reluctance is a savvy idea. We need innovation and we need it quickly,' he said.

He added that Canada's lawmakers would not look good if they refuse to consider such a concept that is implemented successfully in America. 'It would make people here look like they want to go home at five o'clock instead of working late on something important,' he claimed. 'We need to do something to shock the travel system. A tax incentive like this would shock the system in a positive way.'

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