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
![](https://www.ctvnews.ca/polopoly_fs/1.6903244.1716897063!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
BREAKING Scotiabank suffers direct deposit outage on pay day
Scotiabank has acknowledged technical difficulties affecting direct deposits as clients report missed payments Friday morning. On Friday morning, the bank's client services phone line was playing an automated message assuring customers that work was underway to rectify the outage.
Canada Soccer head investigating 'systemic ethical shortcoming' amid spying scandal
Canada Soccer chief executive officer Kevin Blue said he was investigating a potential 'systemic ethical shortcoming' within the program but has not considered pulling the women's soccer team from the Paris Olympics due to a drone spying scandal.
Suspected train sabotage, bad weather dampen spirits ahead of Paris opening ceremony
The Paris Olympics are getting off to a rough start, with suspected acts of sabotage targeting France's flagship high-speed rail network.
Elon Musk's estranged daughter calls out his 'entirely fake' claims about her childhood
Vivian Jenna Wilson, Elon Musk's estranged daughter, publicly refuted several recent anti-trans statements her Tesla CEO and X owner father has made about her.
At least 4 buildings burned at Jasper Park Lodge, others damaged: Fairmont memo
The Fairmont Jasper Park Lodge said Thursday afternoon most of its structures are "standing and intact," including its iconic main lodge.
'She led it the whole way': 18-year-old B.C. woman leads hikers to safety in Jasper National Park
As fire threatened people in Jasper National Park, Colleen Knull sprung into action.
'Catastrophic' situation 'cannot continue': Open letter from Trudeau, other PMs calling for Gaza ceasefire
Prime ministers of Canada, New Zealand and Australia released a letter renewing calls for an “urgent ceasefire” in Gaza on Friday morning.
Arson attacks cause chaos before start of Olympics in Paris, thwarting athletes' travel
Arsonists attacked the French high-speed rail network early Friday, paralyzing travel to Paris from across the rest of France and Europe for some 800,000 people, including Olympic athletes heading to the grand opening ceremony of the Games in the evening.
Saskatchewan First Nation lifts 17-year long water advisory
After 17 years, residents of Star Blanket Cree Nation can breathe a sigh of relief when turning on their taps.