Ontario hospitality industry wants ‘staycation’ tax credit reinstated in light of U.S. tariffs

As U.S. tariffs have many Canadians rethinking travel plans south of the border, Ontario’s hospitality sector is calling on the province to reinstate a pandemic-era tax credit for Ontarians who plan getaways close to home. 

The original staycation tax credit was introduced in 2022 to spur pandemic recovery for the tourism, hospitality and culture sectors. It offered a return of 20 per cent on accommodation expenses of up to $1,000 per person or $2,000 per family.

Last month, there were nearly 500,000 fewer recorded trips from Canada into the U.S. compared to February 2024, according to U.S. Customs and Border Protection data.

As Canadian travellers look beyond American destinations, the province’s hospitality industry association…