Nova Scotia Business Community Wants Staycation Incentives

HALIFAX— With the tourism industry hampered by Covid-19, businesses are relying on people taking staycations this summer. They are also relying on governments to give tax breaks and other incentives to encourage people to spend money locally.

In mid-July New Brunswick answered the call by offering residents a 20 percent rebate up to $1000 on staycation-related expenses- such as accommodation and food. But in Nova Scotia, the business community is still waiting on any government rebates or tax credits.

“We need to have Nova Scotians moving around. We need to have Nova Scotians staying at local accommodations,” said Halifax Chamber of Commerce president, Patrick Sullivan.

“A big part of the Atlantic Bubble, at this point, appears to be…people visiting friends and relatives, which is not unusual. But if you’re visiting friends and relatives, you’re not staying in hotels.”

More than a month ago, the Chamber in conjunction with The Hotel Association of Nova Scotia and the Restaurant Association of Nova Scotia, sent a letter to Nova Scotia tourism minister Geoff MacLellan. The letter laid out three recommendations the province should consider:

• A tax credit for people who stay at local accommodations or attend local events.
• An online program that provides vouchers or a point system to encourage local shopping
• A government grant for a program that will encourage people to shop locally and eat at restaurants.

Sullivan says, even after a month, he did not receive a reply from the Minister.

“I’m a little surprised that at this point, with the urgency of the situation…that the Minister has not yet replied,” said Sullivan.

In an email to Huddle Today, a government spokesperson said a response to the Chamber’s letter was sent recently. Minister MacLellan also sent a written statement to Huddle Today, saying the government of Nova Scotia is putting resources into tourism marketing to help the industry.

“Tourism Nova Scotia is marketing to Nova Scotians and Atlantic Canadians all the wonderful places to visit and things to do in Nova Scotia,” reads the email, in part. “Tourism Nova Scotia, in partnership with Destination Canada, is also providing funding to regional marketing organizations to support local marketing campaigns.”

The statement from MacLellan also says he is looking into incentive ideas brought forward by Tourism Nova Scotia.

“Tourism Nova Scotia has presented several travel incentive program ideas to the Department of Business for consideration and we are looking at the other suggestions that industry has brought forward. We want to provide support where it makes the most sense.”

Sullivan is hoping those incentives will come sooner rather than later. So far, the Atlantic Bubble alone has not been enough to support a lot of tourism businesses.

“They have not seen a huge bump in visitors. They have not seen a huge increase in revenue since the bubble has opened,” said Sullivan.

“Any savings may be enough to incentivize people to go and do something.”

But even if the rebates or tax credits don’t materialize from the provincial government, the Chamber of Commerce hopes that Nova Scotians will go out and support local businesses anyhow.

“I’d like to think that Nova Scotians would do this anyway…they may do it at the end of August, they may do it at the end of September,” he said.

“This is our chance to step up as Nova Scotians.”