A big shot in the arm for struggling hotels and inn operators in Nova Scotia.
The provincial government has announced a $7.3-million tax rebate program to help ease some of the financial pressures experienced by the industry.
Operators can use the rebate for any aspect of their business, such as hiring staff, paying down debt, paying utilities or ordering supplies.
“We know the tourism and hospitality sector has been severely impacted by the global pandemic,” said Labi Kousoulis, Minister of Inclusive Economic Growth. “Travel and border restrictions, while important for our health and safety, have meant declines in visitors and ongoing cash flow challenges for our tourist accommodations operators.”
It comes after a 25 per cent rebate on payment of 2020-21 commercial property taxes was announced in support of the tourism sector.
As municipalities issue property tax bills at different times, the program will remain open throughout the year.
“This is great news. I am so pleased the government has recognized how all of us in the hotel sector have been affected by the pandemic. The rebate program announced today will help us survive. It’s that important to our industry.” said Jeff Ransome, general manager of the Halifax Marriott Harbourfront
Businesses must meet the definition of a roofed accommodation as set out in the Tourist Accommodation Registration Act, be registered as a host under the act, have more than five rooms, not be in arrears of property taxes or property tax installment payments and have experienced a year-over-year revenue loss of at least 30 per cent from April 1 to Oct. 31, 2020.
New operators who were not in business before March 30, 2020, may still be entitled to a rebate if they can demonstrate lower than 50 per cent occupancy rate since opening their business.
Just over 250 applications were received for the first program at a value of $6.7 million.
The overnight stay sector employs about 50 thousand people province-wide.
