Major retailers call for tax refund for international tourists

Tourist tax rebate? CTV's Colton Praill explains why businesses are calling for a tax rebate for international travellers.

A group of major Canadian retailers is asking the federal government to re-implement a Visitor Tax Refund in an effort to boost tourism and invigorate the Canadian economy.

The group, which includes Hudson’s Bay Company, Cadillac Fairview, Birks Group Inc., and Harry Rosen, says bringing back the refund could be a major incentive to the country’s tourism industry.

“We estimate, thanks to independent analysis, that this would bring up to $1 billion dollars, fresh revenue to Canada, tax revenue for the government, but also approximately 32,000 new jobs in Canada,” Jean-Christophe Bedos, president and CEO of Birks Group Inc. said.

The proposal is also supported by the Retail Council of Canada, who note that according to Statistics Canada data, the spend-per-tourist is down five per cent over the last seven years, while in countries like Japan and the Bahamas—who both recently implemented a visitor tax refund—tourist spending is up considerably.

“Every reasonable and cost-effective level should be used to renew the tourism sector’s important contribution to the Canadian economy, since many businesses rely on tourist spending,” Michelle Wasylyshen, national spokeswoman for the Retail Council of Canada, said.

Some Ottawa businesses say they support the move.

“I think it’s something that should be done and we should just keep something like that happening,” Ian Wright, owner of Snow Goose Gallery on Sparks Street, said.

Wright says tourism is a major part of his business and although this summer has been better, the store is still not seeing the amount of customers they were accustomed to prior to the pandemic. Among those who do come, Wright adds there are still tourists inquiring about Canada’s former visitor tax refund; a program cancelled by the federal government in 2007.

“It worked great and everybody said don’t stop it, don’t stop it,” Wright said.

In a statement to CTV News, Gabriel Felcarek, a spokesperson for the federal tourism minister, Randy Boissonneault, wrote, “A former rebate program was discontinued in 2007 because it was found not to be a cost-effective way for the federal government to help attract tourists to Canada.

“The Minister of Tourism is working with the tourism industry, provincial and territorial counterparts, and Indigenous tourism operators to develop a new post-pandemic Federal Tourism Growth Strategy,” Felcarek added.

But Ottawa retailers say tools like these are critical to helping the industry rebound.

“We want the economy back on track and tourism back on track, these things are really important,” Wright said.