From the Niagara Falls Review:
Privatizing the GST visitor rebate program is a “good compromise” for a government eager to divest itself of the scheme and an industry desperate to save it, local tourism stakeholders said Monday.
“Privatization is the best compromise,” said Anna Pierce, general manager of Niagara Falls Tourism. “The government is free of it, tourism operators can still take advantage of it and a private company can run it.”
In September, the federal government announced plans to scrap the program, which allows visitors to claim back the GST on accommodation and other purchases with receipts of $50 or more, claiming the $78-million cost to run the program isn’t worth the expense since only three per cent of visitors use it.
The news shocked Canada’s tourism industry, which has been hit with a series of setbacks since Sept. 11, 2001.