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Hospitality help

Hotels can keep tourism levy for the rest of the year, says province

May 19, 2020 | 11:30 AM

Hotels will be able to keep tourism levy fees collected for most of this year to help weather what’s expected to be a slower-than-usual time for tourists due to COVID-19.

Hotels and other lodgers won’t have to pay any tourism fees collected from March 1 to Dec. 31, 2020. The government says the move will keep between $16 and $27 million in the hospitality sector, which employs about 30,000 people across the province.

Travel Alberta is also working on measures to support local tourism organizations across Alberta that will be announced at a later date.

“Alberta’s tourism industry is a key contributor to our economy and it creates jobs and revenue that so many communities across our province depend on. We’re committed to providing industry the support it needs now so that it can recover and grow,” Tanya Fir, minister of economic development, trade and tourism.

“The tourism industry, and our accommodations providers, were dramatically and suddenly hard hit by the impacts of COVID-19,” said Travel Alberta CEO Royce Chwin. “These businesses play a critical role in the traveller experience and will be essential in the restart of Alberta’s visitor economy. Travel Alberta looks forward to working with our accommodations providers to rebuild the sector.”

Amounts collected before March 1 that are being deferred under the previously announced deferral program can continue to be deferred until Aug. 31.

Accommodation providers are still expected to file returns throughout 2020, as required by legislation, and will be expected to resume regular tourism levy payments in 2021. Additional program details will be provided in the coming weeks.

“At the outset of the COVID-19 crisis, the AHLA participated in an industry roundtable call with the premier and identified liquidity as our industry’s top concern,” said Dave Kaiser, president and CEO of the Alberta Hotel and Lodging Association. “One of our key asks was for government to leave every tax dollar possible in the hands of our members to support liquidity for their business. Today’s announcement directly supports our ask and is positive news for hotels in Alberta. We sincerely thank the Government of Alberta for this support.”

The government said it’s three-phase plan to assist the tourism industry through and after the pandemic will focus on responding and providing the sector with immediate relief, relaunching and supporting the sector through recovery, and rebuilding and positioning the sector for growth.