HAC releases 2025 pre‑budget recommendations

HAC's 2025 pre-budget submission presents a comprehensive plan to rejuvenate the Canadian hotel industry. By addressing labour shortages, investing in infrastructure, adjusting taxation, enhancing marketing efforts, and streamlining regulations, the HAC believes the federal government can significantly support the industry's recovery and growth. These measures not only aim to restore the industry's pre-pandemic vitality but also to position it for future resilience and success.

HAC's priorities and proposals:

1. Labour Shortages

HAC underscores the acute labour shortages plaguing the hotel industry, advocating for measures such as:

• Enhanced immigration pathways tailored to the hospitality sector.
• Increased funding for training and upskilling programs.
• Incentives for businesses that invest in employee retention and development.

2. Infrastructure Investments

Recognizing the importance of modern and efficient infrastructure, HAC recommends:

• Investments in transportation infrastructure that facilitates travel and tourism.
• Support for digital infrastructure to improve online services and booking systems.
• Funding for sustainable and energy-efficient upgrades in hotel facilities.

3. Taxation and Financial Support

HAC calls for a review and adjustment of the tax burden on hotels. Key suggestions include:

• Extension of targeted financial relief programs initiated during the pandemic.
• Tax incentives for hotels investing in green technologies and sustainability practices.
• Reduction of the Goods and Services Tax (GST) for hotel stays to stimulate domestic tourism.

4. Marketing and Promotion

To revive the tourism sector, HAC emphasizes the need for robust marketing efforts:

• Increased funding for Destination Canada to market Canadian destinations internationally.
• Support for local tourism boards to promote domestic travel.
• Collaboration with international travel partners to attract foreign visitors.

5. Regulatory Environment

Simplifying regulatory processes is crucial for the industry's recovery. HAC recommends:

• Streamlining licensing and permit processes for hotel operations.
• Harmonizing provincial and federal regulations to reduce administrative burdens.
• Ensuring fair competition by addressing the regulatory disparity between hotels and short-term rental platforms.

For more detailed information on the HAC's recommendations and the full submission, please refer to the 2025 HAC Pre-Budget Submission document.