I had hope that we had seen the last of the habitual bad math but this report does little to give comfort:
Ottawa itself could lose as much as $218-million in annual hotel tax revenue alone, he said..."Talk about shooting yourself in the foot," Mr. Pollard said. The value of international tour groups and conventions in hotels was $1.28-billion last year, he said. Canada's convention business as a whole is worth more than $2-billion a year, another industry official said. The government cancelled the Goods and Services Tax rebate program late last month. It said the move would save $78.8-million and that less than 3 per cent of foreign visitors applied for the rebates anyway. But Mr. Pollard believes the government didn't include conferences and group travel in its calculations because convention planners get the GST rebates up front, not after the fact.These number may not pan out as the actuals - do they ever - but as the looming bubble burst approaches doing things to make bits of the economy less competitive is an odd approach for a traditionally pro-business party. The whole tax policy thing is odd when you think about it: increasing income tax, the big-talk do-little GST shift, the uncertainty about moving around tax credits between levels of government, the beer and popcorn money tht makes my kids pay for your kids and now this.
It raises the more interesting and non-partisan question of "why is tax hard?" One likely reason is that it is used as a mechanism for other social and economic policy. It is a tool. If the policy is not well scoped out, perhaps difficulties will show in the tax side of the matter. But what policy goal is achieved by adding $78.8-million to the cost of international business and travel into Canada?
Comments
Shelley - October 5, 2006 9:23 AM
Ok, I can't answer to the math kerfuffle, which may be valid. And I haven't done a lot of investigating into the thing. But I can tell you this from a person-on-the-street perspective: lack of a traveller's GST rebate isn't what will stop people from travelling to Canada. See earlier thread on customer service and hospitality.
Alan - October 5, 2006 9:48 AM
One might suggest that this is a continuation of the theme of hospitality.
Chris Taylor - October 5, 2006 2:12 PM
Clearly it's a lack of oversize fibreglass wildlife. Nothing draws in foreign capital like a herd of fake animals spread across the nation at random.
Alan - October 5, 2006 2:27 PM
It's like we see through the same eyes.
Optimuscrime - October 5, 2006 2:31 PM
Shelley,
Fair enough about hospitality on an individual level. But I think it will have a considerable impact on decision-making for those who decide about locations for conferences, annual meetings, conventions, etc.
lrC - October 5, 2006 8:54 PM
The policy goal is to presumably not export wealth by subsidizing foreign visits.
Alan - October 5, 2006 9:09 PM
...'cause God knows we Canadians don't make any money off all them ferners.
David Janes - October 6, 2006 2:42 AM
Having lots of family memembers in the tourism business, and in particular conventions, I've never heard mention of this as an issue. Of course, the economics of attracting people to generic Toronto may be different that getting them to go to unique Newfoundland.
Alan - October 6, 2006 8:14 AM
On a utter side note, David, has tourism in Newfoundland taken the hit that PEI has seen in the last few years? I have always figured that if you are a person who is going to, say, drive to Newfoundland you are going whatever the cost.
David Janes - October 6, 2006 8:39 AM
Newfoundland outside St. John's: down. St. John's: better and better every year.
People like St. John's, conventions like St. John's and people like my aunt/cousin do a pretty damned god job of it a professional and memorable experience.
Alan - October 6, 2006 8:46 AM
I spent three days in your province on a junket but I am unclear about this concept of "St. John's." I understand Water Street. I understand, what was the other place, George Street? But I don't remember a St. John's.
David Janes - October 6, 2006 8:51 AM
If you could remember it, you weren't there.
Alan - October 6, 2006 9:00 AM
I remember a place called Churchills that had only sofas upstairs and a window from which you could watch the British navy vomit.
David Janes - October 6, 2006 9:07 AM
You mean Christian's?