With HST being phased in, even on travel purchased prior to July 1st but to be used after the date HST is set to be in full force, domestic travels and travels to Canada will begin to decrease. The harmonise sale tax will not be levied to on international flights making trips to outside of Canada even more appealing.
Travelers will also benefit from being able to get tax refunds from outside of Canada will the minimal amount to spend as little as $40 CAN. While visitors to Canada will need to spend at least $200 PER purchase in order to benefit from the same tax relief. Residents of Canada, aren’t as lucky and will not qualify for any tax relief from purchases they make while traveling outside of their normal yearly tax refunds and the HST refund.
Even the idea of a new tax is enough to scare off tourist. Not only is the Canadian dollar at a fairly strong point against the struggling green back, and with new passport requirements an additional tax or change to taxation will make Canada look like an unaffordable tourist destination to those who’s travel dollars are already stretch thing.
With an already struggling travel industry especially in Ontario the last thing we need is a new tax.