“Staycation” tax credit of Ontario appears to incentivize tourism sector immensely

Saturday, February 12, 2022

For two years, the tourism and hospitality sector is losing its balance financially after experiencing lockdowns and restrictions due to COVID-19, a recent new provincial tax credit for leisure travel accommodations is major welcome news, as per the officials of local tourism.

On Jan. 1st, “staycation” tax credit of Ontario had come into effect. This will allow the residents of Ontario to claim up to 20 per cent of eligible leisure accommodation expenses for stays between Jan. 1 and December 31, 2022, when filing personal 2022 income tax returns.

This credit will help Individuals to claim up to $1,000 and families can claim up to $2,000 for a maximum credit of $200 and $400 respectively.

Gordon Orr, chief executive officer for Tourism Windsor Essex Pelee Island, explained that the credit will amp up the industry locally.

“It is basically an incentive to help encourage travel, of course when it’s safe to do so, and it is also to give more money back to Ontario residents to help offset the cost of that travel,” said Orr, who was selected by Lisa MacLeod, Ontario’s Minister of Tourism, Culture and Sport, to the task force that suggested the tax credit and how it could be utilized.

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