BCHA continues to work alongside Hotels Canada and hotel associations across the country to advance federal priorities affecting accommodation operators.

Following the latest national association discussions, several key files are moving forward, including hotel investment and taxation, workforce and immigration, international business events, tariffs, public safety, accommodation taxes and online travel agencies.

Hotel Investment and the Productivity Mega Deduction

On September 15, the federal government announced a new Productivity Mega Deduction, expanding the range of business investments eligible for immediate tax deductions.

The measure builds on the Productivity Super-Deduction announced in Budget 2025 and expands immediate expensing from approximately 15% of assets to more than 65%. The federal government has also announced that immediate expensing will be made permanent.

Hotels Canada has advocated for accelerated capital cost treatment for hotel investments for more than a year and is now seeking clarification on exactly how the new measure will apply to the accommodation sector.

The initial assessment is encouraging, particularly for potential investments in areas such as equipment and technology. However, further details are needed before the full implications for hotel owners can be determined.

Hotels Canada is also developing a national hotel investment policy paper examining the current investment environment and opportunities to encourage hotel renovations, development and new capital investment across Canada.

International Convention Attraction Fund

Demand remains strong for the International Convention Attraction Fund (ICAF), which received an additional $15 million over three years from the federal government earlier this year. The renewed funding supports Canadian destinations competing to attract major international conferences and conventions.

Hotels Canada intends to continue advocating for the fund to be expanded and extended. BCHA supports this national effort and the opportunity it creates to attract international business events, visitors and economic activity to BC.

The Canadian Council of Tourism Ministers is scheduled to meet in November, providing another opportunity for the tourism sector to reinforce the importance of continued investment in international business events.

Workforce and Immigration

Workforce availability and access to immigration programs remain major national advocacy priorities for the accommodation sector.

Hotels Canada continues to advocate federally for a simpler and more responsive Temporary Foreign Worker Program, greater mobility and re-entry options for existing workers, and better recognition of the distinct workforce requirements of tourism and hospitality. Additional federal meetings are expected in early October.

At the same time, BCHA is advancing a broader workforce strategy that includes domestic youth, workers already living in BC, newcomers, workers displaced from other industries, education partnerships and structured international recruitment.

One component is BCHA’s planned participation in the Destination Canada Mobility Forum, an LMIA-exempt pathway connecting employers with French-speaking and bilingual international candidates. Subject to hotel participation, BCHA plans to represent BC hotels at upcoming recruitment activities in Brussels, Paris and Tunis.

Tariffs and Canada-US Relations

Hotels across Canada continue to monitor the impact of tariffs and Canada-US trade relations. While many operators have been able to adjust supply chains, concerns remain around specialized equipment, renovation and construction costs, and brand requirements involving US suppliers.

BCHA continues to emphasize the importance of maintaining strong tourism relationships with American visitors, particularly those travelling from important drive markets.

Hotels Canada continues to participate in federal trade and tariff discussions and is asking provincial associations to identify emerging impacts on hotel operations and investment.

Public Safety

Public safety is also emerging as an increasingly important national hotel issue. Associations across Canada are reporting challenges related to guest and employee safety, insurance and workers’ compensation claims, workforce recruitment and retention, and the overall visitor experience.

Hotels Canada is also advancing work related to human trafficking awareness and prevention. National discussions have highlighted the importance of recognizing the investments hotels have made in employee education, prevention, identification and reporting.

Accommodation Taxes and Destination Marketing Fees

Hotels Canada is developing a national tracker of provincial and municipal accommodation taxes and destination marketing fees, including how funds are collected, governed and used.

A key concern nationally is ensuring that hotel-generated funds remain appropriately connected to tourism sales and marketing, with transparency around how those revenues are allocated and measured. Associations are also emphasizing that commercial accommodation providers, including short-term rentals, should contribute fairly.

Online Travel Agencies

Hotel associations are also discussing the growing role of international online travel agencies and the impact of commissions and booking practices on hotel revenues.

The Quebec Hotel Association has raised the issue nationally and is advocating for greater flexibility for hotels to offer competitive direct-booking rates and for stronger competition rules governing international booking platforms.

BCHA and the Alberta Hotel & Lodging Association have supported a request for Hotels Canada to examine the issue nationally and consider potential federal competition-policy recommendations.

What Comes Next

BCHA will continue working with Hotels Canada and our provincial and municipal association partners to ensure the priorities of BC accommodation operators are represented in national advocacy discussions.

With further federal engagement planned this fall, our focus remains on policies that support hotel investment, address workforce challenges, improve the operating environment and recognize the importance of accommodation and tourism to Canada’s economy.