Thought of the Day - February 11 2022 - Staycation Credits

With the tourism and hospitality sector reeling financially after two years of lockdowns and restrictions on travellers to Canada, at the beginning of the year Ontario introduced a provincial tax credit for leisure travel accommodations.

Ontario’s “Staycation” tax credit allows Ontario residents to claim up to 20% of eligible leisure accommodation expenses for stays in the province during 2022. These are claimed when filing personal 2022 income tax returns; up to a maximum deduction of $200 per individual or $400 per family. Ontario has set aside $270 million for the program.

Accommodation can include hotel/motel, resort/lodge, bed and breakfast, a cottage or campground - short-term accommodation would generally not include timeshare agreements, or a stay on a boat, train or other vehicle that can be self-propelled.

Alberta also discussed a similar program in 2021 but I do not think it came to fruition.

New Brunswick offered an Explore NB Travel Incentive Program in the summer of 2020 that was expanded in 2021, anticipating the Atlantic Bubble, to all travellers to their province from across Atlantic Canada. There is no word on a 2022 program.

Most provinces also offered some minor incentives around things like access to provincial parks.

With potential delays in relaxing border restrictions for foreign vacationers to Canada (notably PCR testing requirements and a limited range of acceptable vaccine brands) there is a good chance other provinces might decide to develop similar programs to kick-start the 2022 tourist season. So keep your eyes and ears open.

Cheers

Cliff