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May 22, 2017

The Honorable Chair, Standing Committee on Finance Sixth Floor, 131 Queen Street House of Commons Ottawa, ON K1A 0A6 Canada

Dear Mr. Easter,

On behalf of the American Bus Association (ABA), Canadian Association of Tour Operators (CATO), National Tour Association (NTA), Motor Coach Association (OMCA), Student & Youth Travel Association (SYTA) and United States Tour Operators Association (USTOA), we write to you concerning the Budget 2017 proposal to change the foreign visitor tax rebate program (FCTIP). We are concerned that modifying the FCTIP will create financial hardship on travel and tourism businesses throughout Canada and the United States.

Together, our associations’ members represent some of the top names in travel and tourism and account for a sizeable portion of both the Canadian and U.S. market. We are alarmed by the Canadian government’s announcement that they are considering removing the ability for non-Canadian tour operators to claim the goods and services tax/harmonized sales tax (GST/HST) refund for the accommodation portion of eligible tour packages, and hope that this proposed repeal will be reconsidered. While the stated goal of this is to repeal inefficient tax measures, it is our hope that the current tax rebate will remain intact until all parties can consult, and find ways of making it more efficient.

Under existing law in Canada, non-resident individuals and tour operators who visit the country are currently able to reclaim the tax charged by hotels. The proposed legislation seeks to repeal this entitlement. If repealed, it will negatively impact our members and clients, who add a tremendous contribution to the Canadian economy and support many Canadian jobs.

Thank you for taking the time to consider our letter regarding recent budget measures and their impact on the travel and tourism industry. We have been working in part with the Tourism Industry Association of Canada (TIAC), which has remained in contact with a number of officials in the Canadian Finance Department, the Finance Minister’s office, as well as the Minister of Small Business and Tourism. We hope that you will allow us to work with you to resolve this matter for the benefit of the industry as a whole, the economic contribution it makes to Canada, and the Canadian jobs supported by travel and tourism. We look forward to working with you on this issue.

Sincerely,

Peter J. Pantuso, CTIS, President & CEO ABA - American Bus Association

Pierre LePage, Executive Director CATO - Canadian Association of Tour Operators

Pam Inman, President NTA - National Tour Association

Doug Switzer, President & CEO OMCA - Ontario Motor Coach Association

Carylann Assante, Executive Director SYTA - Student & Youth Travel Association

Terry Dale, President & CEO USTOA – United States Tour Operators Association

cc: , Member of Parliament & FINA Vice-Chair Pierre-Luc Dusseault, Member of Parliament & FINA Vice-Chair , Minister of Small Business & Tourism The Honourable , Minister of Finance The Honourable , Minister of Transport The Honourable , Minister of Public Safety & Emergency Preparedness The Honourable , Minister of Immigration, Refugees & Citizenship The Honourable Patricia Hajdu, Minister of Employment, Workforce Development and Labour John Matheson, Director of Policy to the Minister of Small Business & Tourism Andrew Otto, Finance Canada Maximilien Roy, Finance Canada , Parliamentary Secretary Small Business & Tourism Shereen Benzvy-Miller, Assistant Deputy Minister of Small Business, Tourism and Marketplace Services Charlotte Bell, CEO, TIAC - Travel Industry Association of Canada