QUEEN’S PARK – Tim Hudak, MPP for Niagara West-Glanbrook, joined Ontario PC Party Leader John Tory and PC Tourism Critic Ted Arnott today to call on Dalton McGuinty to eliminate the Retail Sales Tax (RST) on Ontario hotels and attractions over the summer months to help families and the tourism industry.

With gas prices expected to hit $1.50 per litre this summer, combined with higher taxes and user fees, and increasing food prices for such basic items as bread and pasta, Hudak said Niagara and Hamilton families and seniors could use some relief from rising cost of living expenses.

“Removing the RST on hotels and attractions will ease the tax burden on families looking to have some fun this summer,” Hudak said. ”It will give a boost to the tourism industry in Niagara and Hamilton and help to stimulate our economy.”

In addition to providing some relief for Ontarians and helping them to enjoy the attractions in their own backyard, the PC proposal aims to attract more families from the United States and other provinces to vacation in Ontario this summer. The PC proposal would save a family visiting Niagara, Hamilton or Toronto for a long weekend over $100 (see backgrounder below). The proposal also calls on the McGuinty government to make changes to the way tourism marketing funds are spent to promote incentives to vacation in Ontario.

The PC Caucus has put forth a number of responsible, feasible and economical options the government should be taking to improve Ontario’s economic outlook. These include:

• Providing broad-based tax relief to Ontario businesses
• Moving faster to eliminate the job-killing Capital Tax
• Reducing the amount of burdensome regulations on Ontario businesses
• Fixing Ontario’s apprenticeship ratios to increase the number of opportunities for apprentices in Ontario
• Put a freeze on hiring senior management and executive level jobs in the public sector during challenging economic times
• Eliminating the RST on hotels and attractions for the summer months

BACKGROUNDER

ONTARIO COST OF LIVING RISING UNDER DALTON MCGUINTY; PC CAUCUS PROPOSES SUMMER RST RELIEF

Under Dalton McGuinty’s Government, the cost of living in Ontario has risen substantially. As shown below, the cost of living for the average two-parent family has increased by over $2,000 since the Liberals came to power in October 2003.

Despite these rising costs and Ontario’s faltering economy, Dalton McGuinty has failed to give families a modest but well-deserved opportunity to enjoy the summer months. John Tory and the PC Caucus have proposed a Summer Relief Package to ease some of the burden and help kick start an economy on the brink of a recession. This initiative would eliminate the RST on hotel accommodations and attractions from Victoria Day to Labour Day and help boost Ontario’s tourism industry. The following demonstrates the savings for a family of four visiting Toronto on a long weekend.

ONTARIO’S TOURISM INDUSTRY SUPPORTS REMOVING THE RST, LOWERING COSTS FOR ONTARIO FAMILIES

When asked about the Ontario PC Party plan to eliminate the Retail Sales Tax (RST) on Ontario hotels and attractions to encourage families to travel and enjoy this great province over the summer months, representatives from the Tourism industry responded:

“As we enter in to a summer of economic uncertainty, rising fuel costs and a strong Canadian dollar, I believe removing the RST from hotels and attractions over the summer months will make a big difference to the tourism industry in Ontario. These are the kind of initiatives governments should be taking to support businesses and communities throughout the province. It is the smaller, independent business such as mine that rely on government initiatives such as this to assist in bolstering tourism in leaner economic times. Aside from promoting tourism within our beautiful province, it just makes sound economic sense.”

Michael Teichman
Managing Director
Walper Hotel

“Speaking as someone who has worked in Ontario's hospitality for over 30 years, all indicators are that this year will be exceptionally challenging for tourism orientated businesses, especially with gasoline prices soaring to unprecedented levels. Initiatives to stimulate Ontario's tourist trade, such as the RST holiday on overnight stays are exactly the type of action that is required to help soften the blow for what is likely to be a bad summer for many operators.”

Wolfgang Stichnothe
Innkeeper/President
The Millcroft Inn and Spa

“That given the troubles the industry has seen and given the added costs for consumers to travel, anything that can be done to get people moving and enjoying our province’s great attractions is a good thing for our industry.”

Troy Young
Executive Director
Attractions Ontario