'Very long time to recover': Calgary's hospitality industry asks city for more help
Calgary's hotels are still hurting amid the COVID-19 pandemic and officials are asked to take action, says a letter addressed to city council released Thursday.
The document, from the Calgary Hotel Association (CHA), says while it's grateful the city has agreed to defer municipal property taxes until the end of this year, the industry is still suffering immense financial losses.
That is why it is now requesting an abatement of all utility fees and municipal taxes from Jan. 1 to May 31.
"With the impacts of the new Omicron COVID variant, and more so the impact of the U.S. government's appeal for Americans not to travel to Canada, the result has been disaster for Calgary's hotels," wrote Sol Zia, executive director of the CHA.
"The examples of lost revenue can be seen throughout Calgary and not just downtown."
Zia also says that projections for 2022 indicate lost revenue of more than $500 million, losses that could spell doom for many Calgary entrepreneurs.
"More than half of Calgary's hotels are family-owned and operated businesses, and save Q3 2021, all hotel owners, have been underwriting the operation, payroll, taxes and utilities since March of 2020. Calgary hotels are struggling with cash flow and the ability to cover basic operation, utility and people costs," Zia said.
The CHA says the provincial government has also been contacted with a similar request. That level of government has already abated the Alberta Tourism Levy until March 31, but the CHA wants to see that extended until May 31 for all hotels that can show a 40 per cent or greater drop in revenue.
"The CHA is asking the City of Calgary to consider abatement, following the same formula (40 per cent documented change in revenue for comparable period(s) in 2019), as the government of Alberta, of all City-administered utility fees and all municipal taxes (commercial and otherwise) from Jan. 1, 2022 to May. 31, 2022," Zia wrote.
Zia adds the hospitality industry believes those measures will help prevent hotels from closing due to the COVID-19 pandemic.
"It is clear that Calgary's accommodation sector will take a very long time to recover, and the recovery will be well into the future," Zia said.
"We ask that your government expand its support for Calgary's hotels and are prepared to work closely with you on a plan and course of action to support those hotels in the most precarious situations."
CTV News has reached out to the City of Calgary for a statement on the CHA's letter.
CTVNews.ca Top Stories
Poilievre will do 'anything to win,' must condemn Alex Jones endorsement: Trudeau
Prime Minister Justin Trudeau is ramping up his attacks on Conservative Leader Pierre Poilievre as he promotes his government's federal budget.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
'One of the single most terrifying things ever': Ontario couple among passengers on sinking tour boat in Dominican Republic
A Toronto couple are speaking out about their 'extremely dangerous' experience on board a sinking tour boat in the Dominican Republic last week.
Ottawa injects another $36M into fund for those seriously injured or killed by vaccines
The federal government has added $36.4 million to a program designed to support people who have been seriously injured or killed by vaccines since the end of 2020.
Video shows suspects waving weapons, smashing glass in Toronto jewelry store robbery
Arrests have been made after five men were captured on video rampaging through a jewelry store in Toronto, waving weapons and smashing glass display cases.
Ex-SNC executive sentenced to prison term in bridge bribery case
The RCMP says a former SNC-Lavalin executive has been sentenced to three and a half years in prison in connection with a bribery scheme for a bridge repair contract in Montreal.
What Canadians think of the latest Liberal budget
A new poll suggests the Liberals have not won over voters with their latest budget, though there is broad support for their plan to build millions of homes.
opinion Why you should protect your investments by naming a trusted contact person
Appointing a trusted person to help with financial obligations can give you peace of mind. In his personal finance column for CTVNews.ca, Christopher Liew outlines the key benefits of naming a confidant to take over your financial responsibilities, if the need ever arises.
Teacher shortages see some Ontario high school students awarded perfect grades on midterm exams
Students at a high school in York Region have been awarded perfect marks on their midterm exams in three subjects – not because of their academic performances however, but because they had no teacher.