How TIAO Works For You
At TIAO, we work on behalf of our membership to take on pressing policy issues that impact the Ontario tourism industry through our policy strategy and government communications. We work to ensure that the provincial government understands that tourism drives the economy and creates meaningful jobs in every region of the province.
Do you have a pressing issue in your sector?
Reach out directly by emailing us to discuss any issues that's affecting your tourism business in Ontario, and we will work with you to make your voice heard.
Our policy recommendations are grounded in an Evidence Generation Strategy (EGS)
The EGS informs the solutions we pursue, ensuring that our policy recommendations are evidence-based. Our EGS is determined on a case-by-case basis but can involve member surveys, consumer research, in-depth issue investigation, feedback from our Policy Advisory Committee or working groups, and stakeholder outreach.
Advocacy in Action: Our Policy Wins
For more details on TIAO's legislative wins on behalf of the tourism industry, click on the plus sign next to the policy you want to learn more about.
Programs
Available for stays at eligible accommodations throughout 2022, the $270 million Ontario Staycation Tax Credit program drew upon recommendations from TIAO’s pre-budget submission for such a program. The Ontario Staycation Tax Credit supported spending at local tourism and hospitality businesses by incentivizing stays, while also building a consumer habit of leisure spending within Ontario that benefits the industry long-term. TIAO continued to advocate for an extension of the Staycation Tax Credit and to include transient boating under eligible stays.
From the beginning of the COVID-19 response, TIAO has advocated for commercial rent relief for businesses across the province. TIAO was imperative in working with both federal and provincial governments to extend the Canada Emergency Commercal Rent Assistance (CECRA) program, as well as to then replace this program with the Canada Emergency Rent Subsidy program. This program lowered rent for small businesses that were affected by COVID-19 by 75 percent. The impacted small business tenants are businesses who have temporarily ceased operations or have experienced at least a 70 percent drop in pre- COVID-19 revenues. This support program is also available to non-profit and charitable organizations. This program is vital as it covers commercial rent or property expenses, ensuring businesses are able to sustain their operations.
In the Federal Budget in April, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced the planned phase-out of the CERS program by the fall of 2021. Alongside TIAC and the Coalition of the Hardest Hit Businesses, TIAO advocated for the continuation of this program into 2022, as removing financial supports for the tourism industry at this stage is dangerous to the survival and future success of businesses.
In December 2021, the Government of Canada announced the continuation of rent subsidies for the tourism industry and hardest-hit businesses through the Tourism and Hospitality Recovery Program and the Hardest-Hit Business Recovery Program.
To support businesses affected by the province-wide public health restrictions, the provincial government introduced the Ontario Business Costs Rebate Program. Eligible businesses that were required to close or reduce capacity during the provincial public health restrictions were able to receive rebate payments for up to 100% of their property tax and energy costs they incurred while subject to these measures.
Eligible businesses required to close for indoor activities, such as restaurants and gyms, received a rebate payment equivalent to 100% of their costs and similarly, those required to reduce capacity to 50%, such as smaller retail stores, received a rebate payment equivalent to 50% of their costs.
Since the start of the COVID-19 pandemic, TIAO continually called on the provincial government for supports which provide immediate financial relief for tourism businesses affected by closures and capacity restrictions.
The Canada Emergency Business Account (CEBA) and the Regional Relief and Recovery Fund (RRRF) have both been crucial in supporting tourism businesses and organizations across Canada and in Ontario to mitigate the financial pressures caused by the COVID-19 pandemic. As many as 7 in 10 Ontario tourism operators relied on CEBA and RRRF loans to keep their business afloat during the pandemic and cited debt relief as critical to helping them recover. TIAO successfully advocated for a one-year extension of the repayment deadline to qualify for partial loan forgiveness for CEBA and RRRF loans (to December 31, 2023). With the slow and uneven pace of economic recovery, TIAO continued to advocate for a further extension of the repayment deadline and to increase the maximum amount of partial loan forgiveness.
At TIAO, one of the first emergency COVID-19 asks of government was for a wage subsidy for our industry. In April 2020, the Canada Emergency Wage Subsidy (CEWS) was created. This program is a key part of the recovery process for the tourism industry and at one time was accessed by 64% of our members. This program has been extended numerous times and acts as a lifeline for sustaining hospitality operations.
This subsidy is one of the most utilized government support programs during the COVID-19 pandemic. TIAO, TIAC, and the Coalition of the Hardest Hit Businesses have campaigned the federal government to sustain this program into 2022, as the need for the continuation of support programs is vital to the recovery and future of our industry.
In December 2021, the Government of Canada announced the continuation of wage subsidies for the tourism industry and hardest-hit businesses through the Tourism and Hospitality Recovery Program and the Hardest-Hit Business Recovery Program.
Government Legislations, Infrastructure & Grants
In TIAO’s 2020 and 2021 pre-budget submissions, we supported our colleagues at ORHMA and other stakeholders to call for a 20% reduction in wholesale alcohol pricing to support the province’s food and beverage operators. As noted by ORHMA at the time, “licensees 2019 LCBO Purchases represented $577,465,000 which is 9% of LCBO’s total revenues beverage alcohol purchased by licensed establishments, such as bars and restaurants, make up the second-largest LCBO sales channel following consumer direct purchases.”
In a win for ORHMA, TIAO, and colleagues that have campaigned for cuts to wholesale pricing, the Ontario government has answered that call today with a permanent additional 5% wholesale discount on LCBO sales to licensees, bringing the total discount rate to 10% and eliminating the 6% markup on LCBO wine and spirit charges. When combined with HST recovery and container deposit fees, these licensees will effectively pay 20% less than retail prices for alcohol purchased wholesale from the LCBO
Over three quarters of Ontario’s hospitality operators will benefit from this support which will aid in their tough recovery.
At this crucial time, it is imperative that the hospitality industry can maximize profits. In addition to supporting cash flow with the increased uncertainty caused by the Omicron variant, beverage alcohol price reductions will directly flow to a hospitality business’ bottom line, giving the business an opportunity to re-hire staff and expand operations.
In 2022, the provincial government rolled out funds for the Ontario Tourism Recovery Program (OTRP). The OTRP supported tourism businesses that are key employers and tourism generators in their region and experienced a loss of at least 50% of eligible revenue during the COVID-19 pandemic. OTRP funds were aimed at helping operators prepare to reopen safely, develop innovative tourism products, retain and create jobs, and support regional tourism recovery. This program has been a key TIAO ask throughout the pandemic to support the recovery of regional tourism economies.
Under the Working for Workers Act, 2021, Ontario passed legislation that requires licences for temporary help agencies and recruiters. TIAO has continually advocated for the protection of tourism workers and we are proud that the province is taking steps to ensure that all workers are safeguarded against exploitation. TIAO welcomes this move and will continue to advocate for regulations which support the tourism industry.
The changes will enable officers to levy penalties against an unlicensed THA or recruiter or a business who is using an unlicensed operator. Those who use deceitful recruiters could be required to repay workers for illegal fees charged. Ontario is also proposing to hire a dedicated team of officers to take stern measures on THAs and recruiters who are exploiting and trafficking domestic and foreign workers.
President and CEO, Christopher Bloore said, "Workers are the heart of the tourism industry, they are the reason our hotels, restaurants, and attractions in Ontario are some of the most sought-after destinations in the world. Many are international workers who come to Ontario to work, and we are proud to see Minister McNaughton taking the lead to ensure that every worker in our province is protected against unscrupulous recruitment practices, and labour trafficking."
The grant provides one-time payments of $10,000 to $20,000 to eligible small businesses in the tourism and travel sector to support them during their recovery from the COVID-19 pandemic. It is a part of Ontario’s 2021 Budget that is investing more than $400 million over the next three years to continue to support the province’s tourism industry.
TIAO worked with the Ontario Restaurant, Hotel and Motel Association (ORHMA) and the Greater Toronto Hotel Association (GTHA) to successfully extend a special industry regulation in the Employment Standards Act (ESA) protecting certain employers in the tourism and hospitality industry from the costly obligation to set aside termination and severance pay into a trust while laid-off employees wait to be recalled. Extended until July 30, 2022, this temporary measure protects the immediate cash flow of operators in the meeting and events sector, particularly those in hard-hit meeting and event hubs like Toronto and Ottawa.
TIAO had previously advocated alongside ORHMA and the GTHA for the introduction of this temporary measure into the ESA in light of the immediate impact of the COVID-19 pandemic on staff layoffs and meeting and event space revenues.
Many Canadians have lacked access to high-speed internet, impacting their ability to work, learn and keep in touch with family and friends. The Government of Ontario and the Government of Canada have partnered to support projects that will provide high-speed internet access to the entire province of Ontario by 2025. Both governments will contribute equal investments, totalling more than $1.2 billion in order to provide internet to nearly 280,000 rural Ontario households.
This investment will move Ontario almost 40% of the way in its plan to achieve 100% connectivity for all regions in the province by 2025. Reliable high-speed internet is crucial to business and therefore important to the capacity of Northern tourism businesses to recover from the COVID-19 pandemic and remain competitive against domestic and global tourism destinations.
COVID-19
At the start of 2022, TIAO advocated behind the scenes for urgent financial assistance to support the thousands of businesses that had already seen drastic revenue losses, booking decreases, and rising cancellations as a result of the spreading Omicron variant. The province incorporated our feedback into the new Ontario COVID-19 Small Business Relief Grant, which included eligibility for many tourism sectors hard-hit by the latest public health restrictions, including restaurants and bars, live entertainment, attractions, meeting and event spaces, and tour and guide services.
On October 22, 2021, the provincial government released A Plan to Safely Reopen Ontario and Manage COVID-19 for the Long-Term. The plan included an option to allow businesses and facilities to opt into requiring patron proof of vaccination, which would enable the business/facility to waive distancing requirements and effectively reopen at full capacity. TIAO’s advocacy was important in this policy shift. In the days preceding the announcement, TIAO had directly advocated for a proof of vaccination opt-in to ensure that all tourism businesses could be given a fair shot at reopening.
Effective January 5, 2022, Ontario’s proof of vaccination requirement for prescribed settings was amended to require presenting a vaccine certificate with QR code along with ID. This requirement posed a problem for many international visitors whose COVID-19 vaccination document would not have a QR code or one compatible with the Verify Ontario app. Based on stakeholder feedback, it would also pose a problem for many First Nations communities experiencing barriers accessing the vaccine certificate, including systemic barriers and other factors (e.g., not all First Nations communities are connected to COVaxON, the province’s online repository of COVID-19 vaccination information).
TIAO worked with Indigenous Tourism Ontario and the provincial government to address the issues and is pleased that a solution has been reached: International visitors would be able to use their international vaccine receipts along with their passport/NEXUS card, and members of 9 First Nations communities would be able to continue using their vaccine receipt signed by an Indigenous healthcare provider.
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