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Tourism Business Info-Guide
TABLE OF CONTENTS
1. Summary
Working in tourism can be a challenging, but extremely rewarding venture. There are many things you need to know if you're starting up or running a tourism business. This document aims to provide you with useful information sourced from other government departments, industry associations and tourism partners to help you start and run your tourism business in Ontario.
For regulatory or legal questions, it may be useful to contact a lawyer that deals with business regulations through the Law Society of Upper Canada's Lawyer Referral Service.
For further information:
please call 1-800-268-8326
visit the website: Law Society of Upper Canada's Lawyer Referral Service
2. Human Resources
Planning
HR Management Plan
An HR management plan from the Business Development Bank of Canada that helps you through finding, hiring, developing and retaining employees.
For further information:
please call 1-877-232-2269
visit the website: Human Resources Management
Training
The Ontario Tourism Education Corporation (OTEC)
Ontario Tourism Education Corporation is the certifying body for tourism occupations in Ontario.
emerit Certification for the Tourism Industry
emerit Professional Certification, recognized across the country, brings a professionalism and credibility to each of the emerit-trained professions in the tourism industry.
For further information:
visit the website: emerit Tourism Training and Certification
Marketing and Partnerships
Marketing and E-business for the Tourism Industry
Information on e-business marketing for tourism businesses from Business Development Bank of Canada.
For further information:
please call 1-877-232-2269
visit the website: Marketing and e-business for the tourism industry
Ontario Tourism Marketing Partnership Corporation (OTMPC)
The OTMPC website is a source of tourism news, marketing opportunities, research and other resources. Some information on this site includes:
- Product Development with OTMPC
Opportunities to partner with OTMP in product development. The City, Touring and Outdoor committees identify and co-ordinate a Product Development Program.
For further information:
please call 1-800-263-7836
visit the website: Ontario Tourism Marketing Partnership Corporation's (OTMPC)
The Canadian Tourism Commission (CTC)
The CTC supports a cooperative relationship between the private sector and the governments of Canada, the provinces and the territories with respect to Canadian tourism.
Partnership Programs
Partnership opportunities with the Canadian Tourism Commission.
Product Innovation and Enhancement
Product development opportunities with the Canadian Tourism Commission
For further information:
visit the website: TravelCanada.ca
3. Financing
Canada Business Ontario has created a document which provides an overview of some of the main financing options for individuals operating a business in Ontario, including programs offered or supported by the government.
For further information:
please call 1-888-745-8888
see these documents:
Financing for Established Businesses Info-Guide
Financing for Starting a Business Info-Guide
Foreign Convention and Tour Incentive Program
A rebate program that provides GST/HST relief to non-resident consumers and non-resident non-GST/HST-registered businesses.
For further information:
visit the website: Foreign Convention and Tour Incentive Program
Marquee Tourism Events Program (MTEP)
Funding under the MTEP is available to support costs associated with new activities, programs or experiences that enhance a tourism event. A marquee event is defined as an annually recurring world-class event that is well established and has a long-standing tradition of programming and management excellence.
Please check the MTEP website for current deadlines.
For further information:
visit the web site: Marquee Tourism Events Program (MTEP)
Guides
Canadian Tourism Commission
The Canadian Tourism Commission produces a number of publications to help you make sense of the tourism industry. You can access tourism intelligence bulletins, market research reports, information on travel trends and motivations, financial planning and risk management guides. Listed below are examples of these guides.
For further information:
visit the website: TravelCanada.ca
Business Development Bank of Canada (BDC)
Business Development Bank of Canada is Canada's bank for small and medium-sized enterprises (SMEs), delivering financial and management services, with a particular focus on the emerging and exporting sectors of the economy. The BDC has a number of financing programs for a variety of business needs.
My project: Securing Working Capital
Information which can assist with securing working capital for businesses.
My project: Sell a business
Information which can help with succession planning to ensure long-term success.
For further information:
please call 1-877-232-2269
Tourism Investment Fund - Business Development Bank of Canada (BDC)
The fund helps finance high-end tourism operators or start-ups in potentially viable destination centres. It is designed specifically to finance single season tourism infrastructures or operations that have the potential to expand beyond a single season.
For further information:
please call 1-877-232-2269
visit the website: Business Development Bank of Canada
Other Sources of Financing
Investment and Development Office (IDO)
The Investment and Development Office (IDO) focuses efforts on assisting communities and entrepreneurs make the case for tourism investment and development in Ontario.
For more information:
visit the website: Investment and Development Office
4. Regulations
Business Regulations Info-Guide
The Business Regulations Info-Guide will assist you in navigating federal, provincial and municipal regulations that apply to a number of industries and businesses in Ontario.
Travel Industry Act
The Ontario Travel Industry Act requires that travel retailers, travel wholesalers or anyone involved in these activities, such as tour operators, be registered by the Travel Industry Council of Ontario.
Depending on what your product or service you are supplying, different regulations will apply. Below are some basic governmental regulations that apply to all businesses in Ontario.
The Employment Standards Branch of the Ontario Ministry of Labour is responsible for the administration and enforcement of the Employment Standards Act, 2000, which provides for minimum terms and conditions of employment in most industries.
For further information:
please call 416-326-7160 or 1-800-531-5551
visit these websites:
What You Should Know About The Ontario Employment Standards Act
Employment Standards Claim
Employee Self Help Kit
see the documents:
Employment Regulations Info-Guide
Employment and Training Assistance Programs Info-Guide
5. Taxation
Dealing with Business Taxes
All businesses must be aware of the various taxes that may apply to their product or service. Depending on the type and location of products or services being offered, federal, provincial and/or municipal business taxes may apply.
For further information:
see the document: Taxation Info-Guide
Income Tax Information
Business owners must be aware of the requirements of Income tax that may apply to their product or service. There are different tax implications for incorporated and non-incorporated businesses. For information specific to your organization, please consult an accountant or financial professional.
For further information:
please call: 1-800-959-5525
see the document: Taxation Info-Guide
Below are links to publications that cover some of the general tax requirements for business owners in Ontario.
Small Business Guide
If you are starting or currently operating a small business in Ontario, this guide will answer the questions asked most frequently by small businesses regarding their rights and obligations under the tax statutes administered by the Ministry of Revenue.
Ontario Corporations Tax
All incorporated businesses, including those incorporated inside and outside Canada, that maintain a permanent establishment (see Interpretation Bulletin 3008 Allocation of Taxable Income and Taxable Capital) in Ontario are liable for Ontario corporate taxes.
Fuel Tax
Ontario levies a direct tax on every purchaser of clear middle distillate fuel (diesel, stove oil, heating fuel) used in internal combustion engines. This tax is collected by retailers from their customers and is remitted through their suppliers. Untaxed middle distillate fuel is coloured (red) for non-taxable uses (e.g. heating, cooking or generating power in unlicensed equipment used for commercial, industrial or institutional purposes).
FT 1-2001 - Coloured Fuel
This bulletin provides general information on the purchase, use, storage, labelling and handling of tax-exempt coloured fuel in Ontario.
Gasoline Tax
Ontario levies a direct tax on every purchaser of gasoline. This tax is collected by service stations and other retailers, from their customers, and is remitted through their suppliers.
When gasoline is used by business, industry, institutions, farmers and commercial fishermen in equipment not required to be licensed under the Highway Traffic Act, a tax refund may be claimed. Claims must be received by the Ministry within four years of the date tax was paid.
Land Transfer Tax
Land transfer tax is imposed on the acquisition of an interest in land by registered conveyance or unregistered disposition.
Every person obtaining an interest in land is liable to land transfer tax. The tax is calculated on the value of the consideration for the transfer. In certain circumstances the Land Transfer Tax Act (Act) deems the value of the consideration to be the fair market value of the land. The Act defines land to include the land itself, buildings, estates, options, leasehold interests and fixtures.
Provincial Land Tax
Provincial Land Tax is a property tax levied on all land in areas of the province without municipal organization. Revenues contribute towards the cost of provincial services in the unorganized areas.
Overview of Tobacco Tax
Ontario levies a direct tax on every purchaser of tobacco products. Tobacco tax is collected by retailers from their customers and is remitted through their supplier.
Retailers must ensure that their wholesale supplier holds a valid wholesaler's permit, as there are penalties for purchasing tobacco products from a wholesaler who does not hold a wholesaler's permit. Persons selling cigarettes and other tobacco products for resale are defined as wholesalers and must hold a wholesaler's permit. There is no fee for this permit.
The stocking or selling of cigarettes that do not bear an Ontario tax mark (yellow tear strip) is prohibited. Unauthorized possession of unmarked cigarettes may result in penalties, fines, imprisonment and forfeiture of the product.
Discount Coupons
Retailers, restaurateurs, manufacturers and other types of vendors frequently distribute a variety of discount coupons to promote their products. The information in this guide explains how Ontario Retail Sales Tax applies when various types of coupons are redeemed towards the purchase of goods.
Tourism-specific
As of July 1st, 2010 the Ontario Retail Sales Tax has been combined with the federal Goods and Services Tax (GST) to create the Harmonized Sales Tax (HST). Contact the Ontario Ministry of Revenue for information on how these rates will be affected.
Food and Beverage
RST Guide 300 - Prepared Foods
Ontario retail sales tax (RST) applies at the rate of 8% to prepared foods sold by eating establishments when the total charge in any one transaction is more than $4.00. This guide explains how RST applies to prepared foods sold by eating establishments.
RST Small Business Pointer 906 - Prepared Foods
Ontario retail sales tax (RST) applies to prepared foods sold by eating establishments at the rate of 8% when the total charge in any one transaction is more than $4.00. All snack foods and soft drinks are taxable at the rate of 8%. This Pointer will help if you sell prepared foods from an eating establishment.
RST Guide 302 - Alcoholic Beverages
Ontario retail sales tax (RST) applies at the rate of 12% to alcoholic beverages sold through retail outlets, and at the rate of 10% to alcoholic beverages sold through licensed establishments. This guide explains how RST applies to the sale of liquor, beer or wine, sold alone or with other goods.
RST Small Business Pointer 907 - Alcoholic Beverages
Ontario retail sales tax (RST) applies at the rate of 12% to alcoholic beverages sold through retail outlets, and at the rate of 10% to alcoholic beverages sold through licensed establishments. This Pointer provides basic RST information relating to the sale of alcoholic beverages in an establishment such as a restaurant, bar, pub, hotel, resort or by caterers.
RST Guide 500 - Food Products
Most food products are exempt for Ontario retail sales tax (RST) purposes. However, some food products are taxable at the RST rate of 8%. This guide explains how RST applies to food products.
Snack Foods, Beverages and Candies
Ontario retail sales tax (RST) applies to snack foods and candy when sold for 21¢ or more. Soft drinks are taxable when sold alone, but exempt when sold with prepared foods products for a total charge of $4 or less. This guide explains how RST applies to snack foods, beverages and candies.
RST Guide 808 - Status Indians, Indian Bands and Band Councils
Status Indians must pay Ontario retail sales tax (RST) on prepared foods sold for more than $4.00, and on alcoholic beverages, unless they are delivered directly to the Status Indian on the reserve for consumption on the reserve. This notice clarifies how RST applies to the sale of prepared foods and beverages to Status Indians.
Accommodations
As of July 1st, 2010 the Ontario Retail Sales Tax has been combined with the federal Goods and Services Tax (GST) to create the Harmonized Sales Tax (HST). Contact the Ontario Ministry of Revenue for information on how these rates will be affected.
Retail Sales Tax Guide 301 - Accommodation
Transient accommodation is lodging for less than one month in hotels, motels, hostels, tourist homes, etc. and is subject to Ontario retail sales tax (RST) at the rate of 5%. This guide explains how RST applies to various types of accommodation.
Retail Sales Tax Small Business Pointer 908 - Accommodation
Transient accommodation is lodging for less than a month in hotels, motels, hostels, tourist homes, etc. and is subject to Ontario retail sales tax (RST) at the rate of 5%. This Pointer provides basic RST information for those persons providing accommodation.
Admissions/Recreational Facilities
As of July 1st, 2010 the Ontario Retail Sales Tax has been combined with the federal Goods and Services Tax (GST) to create the Harmonized Sales Tax (HST). Contact the Ontario Ministry of Revenue for information on how these rates will be affected.
Retail Sales Tax Guide 303 - Admissions
Admission charges of more than $4.00 to places of amusement are normally taxable at the Ontario retail sales tax (RST) rate of 10%. This guide explains how RST applies to view various types of indoor or outdoor performances and entertainment.
Retail Sales Tax Small Business Pointer 909 - Admissions
Admission charges of more than $4.00 to places of amusement are normally taxable at the Ontario retail sales tax rate (RST) of 10%. This Pointer provides basic RST information relating to charges of admission to places of amusement or to view indoor or outdoor performances and entertainment.
Retail Sales Tax Guide 503 - Recreational Facilities
Most charges for the rental or use of recreational equipment are taxable at the rate of 8%, while some charges are exempt, for Ontario retail sales tax (RST) purposes. Admission charges of more than $4.00 to places of amusement are normally taxable at the rate of 10%. The information in this guide explains how RST applies to charges or fees associated with the use of a recreational facility and to the rental of recreational equipment.
Gift Shops
As of July 1st, 2010 the Ontario Retail Sales Tax has been combined with the federal Goods and Services Tax (GST) to create the Harmonized Sales Tax (HST). Contact the Ontario Ministry of Revenue for information on how these rates will be affected.
Convenience Stores
Generally, food products sold for human consumption are not taxable for Ontario retail sales tax (RST) purposes. However, for RST purposes, food products are different from prepared foods, snack foods and soft drinks. This Pointer provides basic RST information relating to items sold by a variety or convenience store, a smoke shop, a gas bar that sells other goods, or a kiosk.
Snack Foods, Beverages and Candies
Ontario retail sales tax (RST) applies to snack foods and candy when sold for 21¢ or more. Soft drinks are taxable when sold alone, but exempt when sold with prepared foods products for a total charge of $4 or less. This guide explains how RST applies to snack foods, beverages and candies.
Retail Sales Tax Guide 507 - Publications
Some publications are exempt and some are taxable at the rate of 8% for Ontario retail sales tax (RST) purposes. This guide explains how RST applies to publications, such as books, magazines, newsletters, newspapers, school and library publications and religious publications.
6. Other Resources
Associations
Tourism Industry Association of Canada (TIAC)
TIAC serves today as the national private-sector advocate for this $66.9 billion industry, representing the interests of the tourism business community nation-wide. It successfully influences government thinking and action on behalf of Canadian tourism businesses, promoting positive measures that help the industry grow and prosper.
For further information:
visit the website: Tourism Industry Association of Canada
Retail Merchants' Association of Canada (Ontario) Inc.
The Retail Merchants Association of Canada Inc. is run by retailers for retailers, and offers a broad range of programs designed to keep independent retailers strong and profitable. Association members can also be eligible for merchant discount credit card rates.
For further information:
please call (416) 293-2100
Research the Industry
Research is a valuable starting point which enables you to decide on your product, business location, evaluate your potential markets and many other important aspects of embarking on a tourism business. The following provides you with guides to research historic statistics and future trends.
Tourism Research Guides Online
Guides on how to undertake tourism research and interpret the results.
For further information:
visit these websites:
Ministry of Tourism
E-commerce Overview Series: Tourism Accommodation Sector in Canada
Research - Ontario
The Tourism Branch of the Ministry of Tourism and Recreation is responsible for advancing Ontario's competitive advantage in tourism. To assist tourism operators, the Tourism Branch provides research to identify the trends, strengths, weaknesses, challenges and opportunities of tourism development in Ontario.
Tourism Research
This website provides historical trends, analysis and current reports for the Ontario tourism industry.
For further information:
visit these websites:
Tourism Branch
Tourism Profiles For Ontario Regions
Ontario Tourism Marketing Partnership Corporation (OTMPC)
Ontario Tourism Marketing Partnership Corporation's (OTMPC) brings together the expertise and resources of the province's marketing team and works with tourism operators in a unique and exciting private/public sector partnership.
For further information:
please call 1-800-263-7836
Research - Canada
Canadian Tourism Commission
(CTC) focuses on increasing awareness of and interest in Canada as a premiere four-season tourism destination. Visit the following websites for historical trends, analysis and current reports for the Canadian tourism industry.
For further information:
visit these websites:
TravelCanada.ca
Tourism Stats and Figures
Canadian Tourism Human Resource Council
The Canadian Tourism Human Resource Council is a national non-profit organization that promotes and enhances professionalism in the Canadian tourism industry.
Research - International
Related Reading
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DISCLAIMERS
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.
Some of the organizations listed above are not subject to the federal Official Languages Act or the French Language Services Act of Ontario. Their services may not be available in both official languages.
