University Name - TOUR 423: Tourism and Policy Planning Report

This report analyzes the challenges of affordable housing within the Canadian tourism industry, particularly in British Columbia. It examines the Tourism Industry Association of British Columbia's (TIABC) recommendations, including the elimination of PST and MRDT exemptions for short-term rentals, and evaluates the implications of implementing policies at municipal versus provincial levels. The report argues for the benefits of provincial-level policy implementation and proposes additional policy instruments, such as a housing trust fund and occupational tax on the tourism sector, to address the lack of affordable accommodations for tourism workers. The analysis highlights the importance of affordable housing for attracting and retaining skilled employees, maintaining service quality, and ensuring the long-term sustainability of the tourism sector. The report emphasizes the need for comprehensive solutions beyond tax exemptions to mitigate the housing crisis affecting the industry.

Running head: TOURISM AND POLICY PLANNING
TOURISM AND POLICY PLANNING
Name of the Student
Name of the University
Author Note

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The tourism industry is considered to be one of the most dynamic industries and is seen
to be important especially because of the contribution of the industry to the economy of the
country. The tourism industry in Canada has been constantly growing and is seen to have helped
in providing employment to local communities and also talented employees from overseas that
has been proven to be beneficial. However, the tourism industry in the country has been facing
issues in terms of providing affordable accommodation to the workers of the industry (Ioannides
& Zampoukos, 2019). According to scholars, one of the biggest issues in Canada that the country
has been facing is lack of affordable housing and the reason for it is the growth in population
(Chow, 2018). Canada has been encouraging people to come from different countries and settle
in Canada so that they can recruit talented employees and also encourage in the development and
the betterment of industries in the country.
Another issue that has been identified is that there not many people have been
establishing buildings so that they can give it for rent which is another factor that is leading to
soaring prices of the available rental apartments or units that has led to lack of affordable houses
in British Columbia (Downey, Dickson & Mayer, 2016). One of the industries that have been
facing major issues because of this social issue in the country is the tourism industry as this
industry is dynamic and is huge in the country and there are many employees working for the
industry however, because of this issue employees are forced to consider different alternatives
for their survival.
The Tourism Industry Association of British Columbia have been emphasizing on this
issue and has been urging the politicians as well as the government in the country to take suitable
measures and to come up with regulations that will help in eradicating the issue and help in
attracting employees to consider taking jobs in this industry for the overall growth and
development of the tourism industry of the country.
The issue of affordable accommodation for workers has become a growing issue in
Canada and it is likely to affect the operations of the industry efficiently in the long run. The
Tourism Industry Association of British (TIABC) has been emphasizing on this issue and has
suggesting provinces to eliminate exemption on Municipal & Regiobal District Tax (MRDT) and
PST that the owners receive who have properties that have less than four rooms (Tourism
Industry Association of BC., 2016). The organisation is also seen to recommend as urge the
delegates of the local government to introduce and enforce community regulations of their own
to compel owners of property to offer rent to the employees legally and also to encourage
providers of traditional accommodation like resorts, hotels and many more.
It is seen that delegates had recently passed resolutios where they had committed Union
of BC Municipilaties (UBCM) to work with ministries of provincial governments to review the
tax policies that are currently incorporated that helps in preventing providers of small
accommodation sectors and also online platforms like Airbnb to collect accommodation taxes
that could help in adding a high amount to provincial coffers and marketing funds for community
destination marketing companies or organisations.
According to the article or the information published by the Tourism Industry
Association of BC, majority of the people have been asking to put emphasis on short rentals. The
CEO of TIABC, Walt Judas, states that it is highly important to find affordable housing or
accommodation for the employees in the tourism industry. It is becoming difficult for the

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tourism industry in Canada and also various other employees belonging from different industries
to recruit seasonal employees or workers because of this aspect and accommodation is
considered to be the basic necessity that one should provide to the workers. This issue has been
hindering the operations of the tourism industry that is resulting in employee turnover. Thus one
of the suggestions that Judas puts forward is that it is important for to return back some of the
short-term rentals and then change them into long-term rental services or pool in order to help
and address the issue that has been creating a problem and thus it is important to come up with
some policies for taxation and out forward regulations that will help in solving the issue
(Tourism Industry Association of BC., 2016).
The President of Tourism Victoria, is seen to address this issue and also focus on the
issue stating that though there is a zero rate in terms of vacancy in the tourism industry in Canada
however it is highly important for the industry to hire and recruit talented employees who are
beneficial for the tourism industry however not being able to provide proper and affordable
housing has been causing issues ad has been restricting the tourism industry to recruit talented
employees (Tourism Industry Association of BC., 2016). He has also stated the fact the skilled
employees and personnel’s are required in this industry and without them or due to the lack of
them, the levels of the service can decline that will automatically hinder the operations of the
industry as well as the reputation of the industry. He also thinks that short-term rentals should be
made available so that hiring employees in the industry does not become a difficult task.
It has been seen that the TIABC have been focusing on exemption of MRDT as well as
PST to the owners of the properties that have less than four rooms so that they can provide
accommodation to the employees working for the tourism industry at an affordable rate and so
that it helps the property owners to find the offer viable and encourage them to do so that will
help in mitigating the issue of lack of affordable housing for the workers.
The creation of policies which is to exempt MRDT and PST tax seems to be beneficial
and may help in eradicating the issue. However, if these policies are created for provincial level
other than municipal level then it is going to have more benefits and is going to successfully
address the issue. It has been seen that the MRDT is the tax that is up to about three percent only
on the purchase of housing or accommodation that is imposed in some selective geographical or
designated areas on behalf of the regional districts, eligible entities and municipalities (Griffiths,
2017). If this policy is created on a municipal level then it will have some benefits like
purchasing proper housing and accommodation will become cheaper and will help the workers
of the tourism industry to get access to the accommodation at some specific geographical areas
however, creating the policy on a municipal level will restrict the geographical areas and
encourage the workers to purchase land or get accommodation only in some specific areas which
might not be feasible for the employees especially who are working in different cities or towns.
It may become unfavorable for few of the employees resulting in them considering leaving the
country and choosing other destinations in terms of their work.
Creating the policy that has been recommended on a provincial level is seen to be more
beneficial in comparison to creating the policy on a municipal level. Exemption of Provincial
sales tax on the accommodation sector will help employees of the tourism industry in getting
access to housing at a lower cost which will be beneficial for them as well as the industry. PST is
considered to be retail sales tax that is basically applied when a taxable service or a taxable good
is purchased, brought or acquired in British Columbia unless there is any particular application

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of any kind of exemption in the tax (McCann, 2016). This is considered to beneficial as there is
no such restriction imposed on the geographical locations and will help in employees selecting
and purchasing accommodation or housing in their preferred area at a reasonable rate that is
going to help in attracting various employees from all across the globe to work in the tourism
industry in Canada.
It has been seen that according to the article that was introduced by TIABC, majority of
the focus was on short-term rentals. According to scholars, short-rentals are vital and are
considered to be one of the important aspects when it comes to the diverse range of options of
accommodation that help in offering positive and unique ways of experiencing a visit to the local
community and also serves a s a source of income for the owners of the property (Grisdale,
2019). Short-term rentals are beneficial for the employees especially who come during specific
seasons to work as they work for the particular season and then go back to the city or the country
they come from however, providing short-rentals can bring challenges for the employees who
think of serving the industry of the country for a longer time. Purchasing a property becomes
important for employees who think of settling in a country and serving an industry. Thus, it is
important to come up with proper and viable solutions that will help in making sure that the
employees of the tourism industry have access to affordable housing and accommodation that
helps in developing the tourism industry in the country.
According to scholars, in order to mitigate the issue of affordable housing or
accommodation exemption of taxes is one of the viable methods (Gordon, 2020). However, it is
recommended that other than tax exemption other suitable measures need to be taken into
consideration that aim on eradicating the issue of affordable housing or accommodation for the
workers in the tourism industry in Canada.
The country should introduce a program for affordable accommodation, a housing trust
fund that will help in increasing the efforts of the local government in order to increase and also
preserve supply of safe and a decent housing especially for the employee of the tourism industry
in the country. The local and the state government of British Columbia should create a policy or
a pass a law that ensures that a certain occupational tax is levied on the tourism industry in all the
sectors so that a certain percentage of revenue can go to this fund.
It has been seen that there are many accommodation sectors that do not provide sufficient
amount of tax in comparison to the revenue that they earn. It is highly important for these
accommodation sectors to contribute to the industry in the means of tax that can helps the
tourism industry as a whole get revenues that will help in maintaining the industry and ensure the
country provides necessary amenities and needs that the tourism industry and the sectors within
the industry needs. Talented employees are highly important in this dynamic industry because of
the changing nature of the industry and as it are highly dependent on the satisfaction of
customers and providing customers with positive experience. It has been seen that the tourism
industry has been sacrificing because of the lack of affording housing in Canada
. Canada is a popular tourist destination and thus the tax imposed on the different sectors
of the industry will help in collecting sufficient amount of money that will help in eradicating the
issue and ensure that construction of housing and the supply of rental houses are available so that
it can meet the demands of the employees of the industry and provide them with affordable
housing that will help in encouraging them to stay in the country and serve the industry

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positively and also encourage new employees that want to come and work for the industry in
Canada.
The tourism industry in Canada does generate a lot of revenue and a contribution from
the tourism sector will help in increasing the money that are contributed to the fund that will help
in establishing affordable housing in areas that are considered to be hub of the tourism industry
that will help in eradicating the issue of affordable housing and also help in employees to
purchase house at a cheaper rate. However, the occupational tax rate that will be levied on the
different sectors should vary according to the size and the business of the sector so that it does
not create problems for the business and ensures that the contribution to the fund is generated in
a feasible way that benefits everyone both the owners and the employees of the industry.
The tourism industry in Canada along with the government of Canada needs to consider
coming up with a policy that provides incentive programs that will be help in eradicating the
issue of affordable housing. The incentive programs will aim on providing proper incentives to
personal developers and construction companies that will help in encouraging private developers
to rehabilitate or construct houses that are affordable and also help in increasing the supply of
houses that are affordable that will help in accommodating several workers in the tourism
industry.
Increasing the supply of affordable houses will not only help in overcoming the issue but
will also encourage talented employees from all across the globe to consider moving in Canada
and make positive contributions to the tourism industry here that will mark the development of
the industry in the country. With the growth in the population and may people considering
migrating in the country for serving the country, it is important for the government and the
industries to ensure that there is availability of proper housing that can suffice the needs of the
people not only belonging from the tourism industry but also from other industries. The
government and the tourism industry can provide incentives to the private developers or the
construction companies by providing with land so that it is feasible for the construction
companies or the private developers to construct affordable housing for the employees and
provide both options that are to rent houses or to even purchase houses that makes
accommodation easier for the employees of the tourism industry. Providing land to the
construction companies or private developers will help them in saving a lot of money in
purchasing the land and providing rent as well as providing houses for sale will help them in
generating money without having to put extra money or investing which will help and motivate
them to come up with beautiful and affordable houses.
It has been seen that incentive program highly help in motivating people and providing
fruitful incentives will help in encouraging property developers to build more properties.
Incentives can be provided to existing property owners as well who already have many
properties that they can spare and give their properties to employees of the tourism industry at a
lower rate. This incentive should beneficial for everyone that will help in encouraging property
owners to provide housing and apartments at cheaper rate during time where things are becoming
expensive and the property rates are also going high. The tourism industry can provide incentives
to property owners who are willing to provide affordable houses on rents with benefits like they
will receive certain money at the end of the year, provide them with discounts and coupons of
certain destinations within the country that they can use and travel alone or along with their
families and experience the beautiful destinations at a reasonable rate. They can provide

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discounts for dinner or lunch at expensive and luxury hotels that can encourage them to provide
affordable rents to the employees in the tourism industry.
Both the recommendations that are provided are seen to be viable and feasible options
and creating policies that encourage in levying tax on the tourism industry and also providing
incentive programs to private developers to build more affordable housing for the people. Tax
exemption is seen to be highly important and can helps in resolving the issue however, it is not
enough and thus the provided recommendations can helps British Columbia in resolving the
issue that has been creating huge problem and will help in providing affordable housing to the
employees which is their basic necessity and will help in the smooth operations of the tourism
industry in the country.
Crisis of affordable housing for the employees of the tourism industry has become a huge
issue as it has been resulting in employees choosing to work in other countries and has also been
difficult in attracting talented employees to work in the industry in the country. It has been seen
that the tourism industry has been facing issues because of the lack of affordable housing from
not being able to recruit talented and important employees to the decrease in the level of services
in the industry due to the lack of employees and also lack of talented employees. TIABC has
recommended of exempting taxes and encourage owners of properties to provide
accommodation to the employees that will help in reducing the problem however the government
and the industry should consider following the recommendations provided that is create policy to
levy occupational tax and also to create policy that aims on introducing incentive programs that
will help in encouraging private developers to construct new buildings and also provide more
supply of affordable housing or accommodation to the employees of the tourism industry in
British Columbia, Canada.
Both the recommended solutions are seen to be important as levying occupational tax
will help the industry in generating money to come up with sufficient amount of funds that can
be put into programs that contribute to the development of housing and accommodation for the
employees of the tourism industry that is highly important and the incentive programs will help
in motivating and encouraging property owners and also private developers to increase the
supply of affordable homes and will also help in motivating owners of property to provide with
affordable renting houses to the employees. These recommendations will help the tourism
industry to overcome the issue successfully and attract talented employees to work in this
industry and contribute to the growth and development of the industry.

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Referencing
Chow, W. (2018). Air Banned and Barred: Why New York City's Affordable Housing
Crisis Has No Room for Short-Term Rentals. Brook. J. Corp. Fin. & Com. L., 13, 417.
Downey, J., Dickson, S., & Mayer, M. (2016). The Trudeau Government; An Economic
Perspective.
Gordon, J. C. (2020). Reconnecting the Housing Market to the Labour Market: Foreign
Ownership and Housing Affordability in Urban Canada. Canadian Public Policy, 46(1), 1-22.
Griffiths, S. L. (2017). Where Home Meets Hotel: Regulating tourist accommodations in
the age of Airbnb.
Grisdale, S. (2019). Displacement by disruption: short-term rentals and the political
economy of “belonging anywhere” in Toronto. Urban Geography, 1-27.
Ioannides, D., & Zampoukos, K. (2019). Exploring the geographic dimensions of tourism
work and workers. In A Research Agenda for Tourism Geographies. Edward Elgar Publishing.
McCann, S. (2016). Evaluating Canada's Tax Policy on the Second-Hand
Market (Doctoral dissertation, Faculty of Graduate Studies).
Tourism Industry Association of BC. (2016). TIABC CALLS ON CIVIC
GOVERNMENTS AND THE PROVINCE TO IMPLEMENT REGULATIONS TO HELP
ADDRESS THE PROBLEM OF AFFORDABLE ACCOMMODATION FOR WORKERS.
Retrieved 18 April 2020, from https://www.tiabc.ca/wp-content/uploads/recent-current-
advocacy-issues/TIABC-news-release-on-STRs-1.