Province extends hiatus on tourism's key levy

Alberta hotels, motels and lodges will be able to keep the tourism levy cash collected until March to help the industry weather the COVID-19 pandemic.

In May, the UCP government announced operators could hold on to the tourism levy from March 1 to Dec. 31, freeing up an estimated $22 million in cash for the hospitality sector.

On Friday, it announced that hiatus would been extended for three months after getting feedback from across the province.

The government estimates the move will free up to $10 million in additional cash flow for the sector to retain staff and keep running, a government news release said Friday.

Jobs, Economy and Innovation Minister Doug Schweitzer said it was important the government support the tourism industry so Alberta can welcome back visitors when it is safe.

“Travel Alberta and our small businesses that run our tourist attractions are critical to this recovery as we move forward out of this pandemic,” he said in the news release.

Dave Kaiser, president and CEO of the Alberta Hotel and Lodging Association, said the association requested the abatement, and the move would help an industry fighting to survive due to COVID-19 restrictions on travel and gatherings.

Companies still need to file returns under the Tourism Levy Act, and will have to resume regular tourism levy payments on those amounts collected in or after April 2021.

Organizations in Calgary, Edmonton, Banff, Jasper and Canmore that are promoting tourism destinations and working to attract visitors in the spring and summer of next year will also receive a combined total of $8 million in support.

In 2017, the tourism industry employed about 72,500 full-time employees and contributed $7.3 billion to the province's GDP, the release said.

The hotel sector usually employs about 30,000 Albertans.