alberta tourism tax levy

Alberta offers six-month tourism levy break for hotels again until March

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The Alberta government is again offering up tourism levy cash to help hotels and motels hit hard by the COVID-19 pandemic get through the winter.

Eligible hotels that saw a 40 per cent decline in room revenue compared with 2019 will be able to keep tourism levy amounts collected between Oct. 1 this year and March 31, 2022.

The government waived the four per cent levy for the accommodation sector starting in April 2020, but that ended in June 2021. By July, hotel associations were calling for additional support for an industry long in survival mode.

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In a Tuesday news release, Jobs, Economy and Innovation Minister Doug Schweitzer said activity in the tourism sector began to pick up in 2021, but the government hopes to free up cash for operators to employ staff and continue operating.

“With the emergence of the Omicron variant and evolving border measures, we are abating the tourism levy again to support the hardest hit operators in the tourism sector by providing them with cashflow to get through this,” said Schweitzer.

Dave Kaiser, Alberta Hotel and Lodging Association president and CEO, said the announcement is great news, since every dollar helps.

“We had a decent summer and then when the fourth wave hit, things sort of fell back again,” said Kaiser, adding that those that need the levy abatement support most are downtown hotels that rely on group events, conventions and corporate travel.

“We do have a lot of hotels who are really struggling,” he said, noting the recently announced federal Tourism and Hospitality Support program will also help, but it has a similar 40 per cent revenue-drop threshold that could leave some operators behind.

For Alberta’s abatement, hosts that didn’t have to collect the tourism levy in a corresponding month or quarter in 2019, or that weren’t operating in 2019, won’t be eligible. However, Kaiser noted that in 2019, the industry wasn’t “particularly healthy” before the pandemic.

“I know we’ll have hotels who may be 20 per cent or 25 per cent below that threshold, who will still be losing money,” he said.

During the first 18-month round of the abatement that ended in June, the government estimated almost $47 million was freed up for the sector.

The government said it will take up to six weeks to implement the program, which will be administered through the Tax and Revenue Administration Client Self-Service (TRACS) online portal for the majority of hotels.

Eligible hotels that have already remitted tourism levy amounts collected on or after Oct. 1 will automatically receive a refund from Alberta’s Tax and Revenue Administration, although the government said more details about the program will be released online .

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Alberta government to add tourism levy to short-term rentals

Details to be included in thursday's provincial budget.

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Renting an Airbnb or VRBO in Alberta will soon be more expensive.

The Alberta government plans to introduce details this week about extending its tourism levy to short-term rentals like Airbnb and VRBO.

A government spokesperson confirmed that details of the levy will be announced in Thursday's budget, but declined to provide further information citing budget confidentiality. 

The levy adds a four-per-cent charge to any rental under 28 days, though most short-term rentals aren't included under the current guidelines. 

Though specifics aren't outlined, the change is mentioned in the government's 2019-23 Fiscal Plan . According to the plan, the tourism levy change is expected to generate about $5 million in 2020-21. The tax will be charged through the service used to book the rental. 

Edmonton residents urge city to crack down on short-term rentals

Currently, most short-term rentals are exempt, as only establishments with more than three bedrooms that can be rented separately are subject to the levy. 

The government's fiscal plan said the levy was not designed with short-term rentals in mind and "gives these operators an unfair advantage over hotels and other accommodation providers that are subject to the levy."

The Alberta Hotel and Lodge Association has applauded the move as an important step in levelling the playing field 

Other jurisdictions

If enacted, Alberta won't be the first province to tax short-term rentals. Both British Columbia and Quebec have taxes that are charged through platforms like Airbnb.

In Quebec, guests pay a 3.5-per-cent lodging tax on the cost of the listing for any reservation under 31 nights. 

Hoteliers urge federal candidates to tax Airbnb hosts

In B.C., there is a eight-per-cent provincial sales tax (PST) for the listing price (including cleaning fees) for reservations 26 nights and shorter. A municipal and regional district tax (MRDT) of two to three per cent is also applied. 

• Airbnb remits almost $43M in taxes earmarked for housing and tourism initiatives in B.C.

On a municipal level, several cities in Ontario apply a municipal accommodation tax of four per cent to short-term rental reservations, among them: Barrie, Brockville, Greater Sudbury, Mississauga, Ottawa, Kitchener and Windsor.  

Some Alberta cities have also begun to regulate short-term rentals. Both Calgary and Edmonton require short-term rental hosts to have a business licence to operate in the city.

'Pay our fair share'

Airbnb said it has been working with the provincial government on the addition of the tourism levy and the company hasn't been negatively affected by taxes in Quebec and B.C. 

"We're proud to pay our fair share and help to promote the tourist economy," said Nathan Rotman, Airbnb Canada's deputy director of public policy.

According to Airbnb, there are about 12,000 listings in Alberta including rooms in homes, entire home listings, boutique hotels and traditional B&Bs. 

Rotman said he didn't have the details on Alberta's plan for the tourism levy, but said B.C.'s model has been a "very successful tool to help promote the tourist economy in that province."

Airbnb's provincial and municipal tax collection in B.C. was almost double what was expected and generated $42.9 million in one year, with $33.7 million of that coming from PST and the other $9.2 million from municipal and regional district tax.

'Catching up with other provinces'

Dave Kaiser, president and CEO of the Alberta Hotel and Lodge Association (AHLA), said extending the tourism levy to short-term rentals has been a long time coming.

"It's been a file we've been working on for several years and couldn't get any traction with previous governments here in Alberta. We're happy that it's finally happening, and in reality I think Alberta is catching up with some of the other provinces."

'Not playing by the same rules': Edmonton hoteliers want more regulation on short-term rentals

The AHLA provided input to the government about the tourism levy change and gave several recommendations. The association wants the restriction about the number of rooms removed and wants online platforms to collect and remit the levy on behalf of the properties. It also wants data collected from online platforms shared with municipalities. 

Kaiser said the the AHLA has other recommendations for the regulation of short-term rentals, including one significant change federally: GST.

"Without GST and without a tourism levy, someone who is operating a short-term rental has a nine per cent tax advantage or price advantage on hotels."

With files from Andrea Huncar

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Canada: Alberta Tourism Levy

The following is information for temporary accommodation providers (short term rental providers) in Alberta about collecting and remitting the tourism levy.

Effective April 1, 2021, changes to the Alberta Tourism Levy Act will be implemented. These changes include the  extension of the tourism levy to short-term rentals offered through online marketplaces  (e.g., Airbnb, Vrbo, Expedia, etc.) booked by purchasers on or after April 1, 2021.

The tourism levy is 4% of the purchase price of the accommodation.

This includes any unit of accommodation provided in Alberta, including stays in residential units.

Who remits the tourism levy

The tourism levy is collected and remitted to Alberta Tax and Revenue Administration (TRA) by temporary accommodation providers in Alberta, including an:

Operator:  a person who sells, offers for sale, or otherwise provides accommodation in Alberta, but does not include an online broker.

Accommodation Host:  an operator that sells, offers for sale, or otherwise provides temporary accommodation of a residential unit in Alberta.

Online Broker : an operator of an online marketplace.

Accommodations excluded or exempt from the tourism levy

The levy does not apply to:

• Rooms occupied continuously for 28 days or more by the same individual
• the purchase price for the unit of lodging is less than $30 per day or $210 per week; or
• the person's gross revenue from the provision of lodging in Alberta in the previous 12 months was less than $5,000; and
• the gross revenue in the next 12 months is reasonably estimated to be less than $5,000
• Social care facilities, nursing homes, or hospitals
• Licensed supportive living accommodation
• Accommodation provided on a reserve in Alberta to a person or entity exempt from tax under the federal Indian Act
• The Government of Canada (direct billing)
• Members of the diplomatic or consular corps

You must register for the Tourism Levy program if you provide temporary accommodation in Alberta. Review the steps for how to register your account, file your return, and pay  here .

10 Tips: How to Report the Tourism Levy

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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Economic Impact

Tourism Related GDP and Taxes

This dashboard measures the total economic impact of Alberta’s tourism industry on the overall economy including the direct, indirect and induced impacts. 

The direct impact of tourism includes tourism GDP, full-time employment, and tax revenue resulting from tourism spending. 

Indirect impact shows how tourism spending trickles down as tourism businesses purchase goods and services from supporting businesses, including the employment and tax revenues from those businesses.

Induced impacts are the broader results of increased spend in a region, caused by the direct and indirect effects of tourism. Businesses with increased revenue from direct and indirect economic tourism effects can spend more on labour, resulting in more household income available to spend on goods and services within the community. This shows how tourism growth leads to overall economic and community well-being.

Tourism-related taxes are the total sales taxes (GST) and income tax resulting from direct, indirect and induced effects of tourism, as well as levy collection.

How-to use this information

Our Tourism Indicator dashboards hold a wealth of information about the tourism market and make predictions for the coming year. You can filter and sort the information, so be sure to customize them to your interests.

Understanding Tourism Indicators

Active Tourism Businesses are businesses that have reported having one or more employees in any given month. The number of active tourism businesses is an indicator of tourism’s recovery and growth in Alberta. 

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Tourism Levy Abatement Extended Until March 31, 2022

With the help of our members, the AHLA’s advocacy efforts have resulted in a further extension of the Tourism Levy abatement . However, eligibility for the abatement will now require a 40% revenue reduction from 2019. Eligible hotels can retain an extra 4% of room revenue for amounts collected from October 1, 2021 to March 31, 2022.

Dave Kaiser, AHLA President and CEO, spoke with the Edmonton Journal about the announcement:

“We had a decent summer and then when the fourth wave hit, things sort of fell back again,” said Kaiser, adding that those that need the levy abatement support most are downtown hotels that rely on group events, conventions and corporate travel. “We do have a lot of hotels who are really struggling,” he said, noting the recently announced federal  Tourism and Hospitality Support program  will also help, but it has a similar 40 per cent revenue-drop threshold that could leave some operators behind. For Alberta’s abatement, hosts that didn’t have to collect the tourism levy in a corresponding month or quarter in 2019, or that weren’t operating in 2019, won’t be eligible. However, Kaiser noted that in 2019, the industry wasn’t “particularly healthy” before the pandemic. “I know we’ll have hotels who may be 20 per cent or 25 per cent below that threshold, who will still be losing money,” he said.

Read the full article here .

Click here to find out more about the eligibility requirements and how to apply.

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Calgary has more hours of sunshine than any other major city in Canada, making it a great destination any time of year. Be prepared for changes in temperature as weather in Calgary can vary day to day and season to season, and even hour to hour. 

Mild westerly winds called “chinooks” bring warm temperatures to Calgary, raising winter temperatures by as much as 15°C in just a few hours. Be advised that this dramatic change in weather may sometimes cause headaches or fatigue. 

Expect warm summer weather, cold temperatures in the winter, and a mix in the fall and spring. You should expect to wear shorts and t-shirts comfortably in summer months and a warm coat during the winter. 

Calgary sits at an elevation of 1,045 metres above sea level.

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Calgary is a safe city where you can feel comfortable in most neighbourhoods at any time of the day. Areas previously known for crime have been redeveloped into engaging communities ready for you to explore and visitors should feel at ease to explore the city in almost any area. As with any big city, caution should be taken when travelling alone at night in underpopulated areas, such as alleys. The city enjoys low crime rates, and there is not a specific area to avoid as a visitor. 

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If you require an ambulance or emergency service, dial 911 . Hospitals will not refuse treatment to anyone requiring medical attention, regardless of health care coverage. Rates vary. The following hospitals have emergency care departments:

Health Insurance

Visitors to Canada should obtain traveller’s health insurance before departing their homeland. Visitors requiring prescription medication should bring a copy of the prescription in case they require renewal in Canada.

Money Matters

Canada’s currency is the Canadian dollar. Visitors can exchange traveller’s cheques and foreign currency for Canadian funds at banks, trust companies, credit unions, ATMs, and at airport and border crossing exchange booths. Banking hours are typically Monday to Saturday, 9:00 a.m. to 4:00 p.m., though some banks are open evenings on certain days.

Other currency is not widely accepted. The US Dollar is accepted at some establishments, but is often charged at a premium rate, making it advisable to travel with at least some Canadian currency. 

Goods and Services Tax

Alberta tourism tax.

The Alberta Tourism tax applies to Accommodations on all Alberta hotel stays.

Calgary hotels charge a tourism levy, calculated as 4% of your total accommodation charges. The levy is remitted to the Alberta Tax and Revenue Administration (TRA) by temporary accommodation providers in Alberta.

The levy does not apply if you occupy the same room continuously for 28 days or more.

More information regarding the Alberta Tourism Levy can be found on the Government of Alberta website ( https://www.alberta.ca/tourism-levy.aspx ) and the Alberta Hotel and Lodging Association website ( https://www.ahla.ca/resources/accommodation-legislation/tourism-levy-act/ ).

Tipping and Gratuities

Gratuities are rarely included in the price for many restaurant and tour operators in Calgary. Tipping approximately 15-20% on the total bill before tax is customary, depending on the quality of service. Many restaurants may charge 15-18% gratuity for large group bookings (six or more guests).

Payments Accepted

Most Canadian retailers, restaurants, and services use point of sale systems that accept major credit cards, like Mastercard, VISA, and American Express. Debit cards are also accepted depending on the conditions of your banking institution and country of origin. All Canadian debit cards are accepted in Calgary. Many point of sale systems accept chip cards that require a pin number in order to complete the transaction.

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Visitors to Canada should carry valid travel documents when crossing the border no matter how you arrive. You will require a passport or equivalent travel document in order to cross the border and enter Canada.

You can consult the Government of Canada’s Requirements to Enter Canada for more information regarding entry requirements or the Canada Border Services Agency for customs regulations. These rules apply to all border crossings in Canada, including road and air entry points near or in Calgary. 

For detailed customs information on entering Canada, visit  Canada Border Services . To determine what documents you need to visit Canada, visit Canada’s  Immigration and Citizenship  website.

Connect with the consulate general of your home country in Calgary: 

• British Consulate-General Calgary
• Consulate-General of the People’s Republic of China in Calgary
• Consulate of Mexico in Calgary
• U.S. Consulate General Calgary

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Parks admission, national parks admission .

Five National Parks are within a day trip of Calgary: Banff National Park, Jasper National Park, Kootenay National Park, Waterton Lakes National Park, and Yoho National Park. These destinations can be accessed by car and organized shuttle and bus tours.

Park passes must be displayed in your rearview mirror or taped to the interior of the windshield while inside a National Park. Parks Canada staff check vehicles for valid passes at various destinations and checkpoints throughout the national parks. Fines are issued to Canadian residents and international visitors if a valid pass is not present.

It is illegal to camp in the wilderness outside of organized campsites in any National Park. 

Provincial Parks Admission 

Calgary is home to and adjacent to several world-renowned Provincial Parks, including Bow Valley Provincial Park, Bragg Creek Provincial Park, Carseland Provincial Park, Dinosaur Provincial Park, Fish Creek Provincial Park, and Nose Hill Provincial Park.

While most provincial parks do not require the purchase of a park pass, a Kananaskis Conservation Pass is required for vehicles parked within Kananaskis Country and the Bow Valley Provincial Park Corridor. Daily, multi-day, or annual passes can be purchased online or in-person at Kananaskis Visitor Information Centres or the Canmore Nordic Centre Day Lodge.

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