TIAO Welcomes Ontario Competitiveness Tax Cut to Encourage Tourism Investment

Tourism Industry Association of Ontario (TIAO) welcomes today's announcement of the Ontario Competitiveness Tax Cut, an important step toward strengthening business investment and economic competitiveness across the province.

The proposed $8 billion provincial tax relief measure, which complements the federal Productivity Mega Deduction, would allow businesses to immediately write off 100 per cent of the cost of a wide range of eligible capital investments. For Ontario's tourism industry, these measures could help operators accelerate investments in equipment, transportation, digital technologies and other assets that strengthen business productivity and enhance visitor experiences.

The Ontario government estimates that the measure will attract at least $11 billion in additional capital investment, support the creation of 30,000 jobs and contribute $6 billion to provincial GDP.

TIAO has been actively advocating for policies that encourage private investment in Ontario's visitor economy, including accelerated capital cost allowances and targeted incentives to support tourism infrastructure and product development. By reducing the cost of investment, these measures can help tourism businesses modernize their operations, strengthen regional competitiveness and develop new experiences that attract visitors from across Canada and around the world.

This work is closely aligned with Forward Motion: A Strategic Playbook for Ontario's Tourism Industry, our industry-led strategy to strengthen Ontario's visitor economy. The strategy outlines an ambitious but achievable path to grow annual visitor spending to $38.1 billion by 2030, generating additional economic activity, employment and tax revenues for communities across the province.

Investment attraction is a key priority of Forward Motion, and today's announcement represents an encouraging step toward creating a more competitive investment environment. We look forward to working with government and industry partners to build on this momentum, including exploring additional opportunities to attract private investment in tourism infrastructure, new attractions and destination development across Ontario.