Sask. hospitality industry highlights struggles amid carbon tax hike
Motorists aren’t the only ones feeling the pinch of the recent carbon tax hike. Many operators are hesitant to pass along the added cost to customers for fear of losing business.
Regina’s Atlas Hotel already paid a hefty carbon tax bill and now it’s going even higher.
“200 room conference hotel, 15 meeting rooms, a water park, a restaurant and a pub. Our carbon tax last year was roughly $70,000 is what I pay,” CEO Ryan Urzada told CTV News
The hotel operator says its money that could have been reinvested in the business and its people.
“That’s $70,000 that isn’t going to wage increases,” Urzada added. “It’s $70,000 that didn’t go to reinvestment and expansion.”
On April 1, the federal carbon tax rose from $65 per tonne to $80.
It’s an expense that many businesses will have to pass on to consumers but that’s difficult to do when it comes to hotels and restaurants.
“There’s only so much you can pass along to the consumer before the consumer says ‘You know it’s just too expensive,’” Hospitality Saskatchewan CEO Jim Bence explained.
“I can’t spend $28 on a hamburger platter anymore so it’s a balancing act with operators on how they can keep consumers coming back but then being able to make a little bit of money.”
The provincial government has shielded homeowners through its decision not to collect and remit the carbon tax on home heating fuel.
Businesses are on their own.
The province believes there are better ways to handle emissions reduction.
“We are working with industry to try and reduce those emissions coming specifically from industry,” Environment Minister Christine Tell told reporters.
The hospitality industry was already feeling the pressure of inflation.
Now an increased carbon tax is further eroding profitability and business confidence.
CTVNews.ca Top Stories
BREAKING Israeli airstrike kills at least 20 people including children at a school in central Gaza
An Israeli airstrike has killed at least 20 people including children at a school-turned-shelter in central Gaza, according to local hospitals.
Thousands of miles from home, Trudeau learns of dissension in his caucus
The free trade agreement with ASEAN is expected to be signed at the end of 2025. If Trudeau is pressured to step down, or if his government falls and loses the next election, Trudeau will not, as prime minister, be there to see the fruits of his labour.
Here's the dirt on the germiest items in your day-to-day life
Your home – considered to be one of the safest havens from all the external stresses – is filthy.
Trump suggests a protester may get 'the hell knocked out of her' by her parents
Former U.S. president Donald Trump called for a protester at one of his rallies to 'go back home to Mommy' to 'get the hell knocked out of her,' his latest instance of using violent language when confronted by demonstrators.
Court untangles 'bizarre mess' that allowed Vancouver duplex owner to pay off mortgage after foreclosure, sale
A B.C. Supreme Court judge has ruled on a case she describes as a "bizarre mess" in a decision issued earlier this week.
Historic Jersey Shore amusement park closes after generations of family thrills
The historic Jersey Shore amusement park has closed amid financial woes made worse by COVID-19 and Superstorm Sandy.
Should men and women eat different breakfasts? Study suggests they should
The study, which uses a mathematical model, indicates that men and women may benefit from different breakfast choices to optimize metabolism and potentially aid weight management.
Liberals announce new campaign director amid new push to oust Trudeau
The Liberal Party has named Andrew Bevan as its new national campaign director for the next federal election. The announcement comes as party continues to face lagging polls and as party leader Justin Trudeau is facing new pressure to step aside.
Man with loaded gun arrested at checkpoint near Donald Trump's weekend rally in Southern California
A Nevada man with a shotgun, loaded handgun, ammunition and several fake passports in his vehicle was arrested at a security checkpoint outside Donald Trump's rally Saturday night in the Southern California desert, authorities said.