Gates’ staycation tax credit welcomed by Crystal Beach hotel

A local entrepreneur behind a boutique hotel consisting of 13 themed rooms in Crystal Beach says MPP Wayne Gates’ idea to bring back a provincial staycation tax credit is a “great initiative.”

Phil Smith opened Hotel Philco in late 2022 and has welcomed people from all over the U.S. as well as Europe, but he estimates that about two thirds of his guests since opening are from Ontario.

Gates recently introduced legislation at Queen’s Park that would give families up to $1,000 to visit hotels, restaurants, attractions, and other qualifying businesses across Ontario.

Smith, who owns South Coast Cookhouse across the street from Hotel Philco, said the idea could be a “win win” for everyone, drawing more customers to the area and its many shops.

It would increase tourism and also support small businesses, the result of “downstream benefits,” he said.

In the recent off-season, the non-summer months, guests were asked to fill out an exit survey when checking out of Hotel Philco.

One of the questions was how much money they spent outside the hotel during their visit.

Smith said the average stay resulted in $410 being spent at local shops and restaurants.

Smith also said that a lot of the people who spend a night or two are from the region. There is one group from Crescent Park who regularly books rooms, giving them a chance to “pretend they’re on vacation” in Crystal Beach, he said.

Smith said he hopes the incentive will bring more people to Crystal Beach, but also to other small, similar communities.

“Ontario is a big place to explore with a lot of places to see,” he said.

In a news release, Gates said workers and small businesses deserve this investment to support them, their families and their communities.

“Given the uncertain economic climate created by the Trump administration’s tariffs, this is a common-sense way to make sure working families can still enjoy a night out or a summer trip, while also investing into Ontario business, Ontario jobs, and the local economy,” he said.

Gates previously introduced similar legislation during the pandemic to help support economic recovery.

The Ford government passed a version of the credit before cancelling the program in 2022. Gates’ new proposal would expand eligibility to a wide range of tourism-related expenses and would extend the program permanently to provide long-term support to the sector, explains his news release.

“This program would ensure workers and families have some supports in a time of uncertainty for our economy, while also making sure we support vital sectors in Ontario,” said Gates.

“In Niagara alone, tourism is responsible for over 40,000 jobs and 2,800 businesses. Let’s ensure we invest to protect those jobs and those small businesses across Ontario,” he added.

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