Featured Stories > Taxes and Levies Hindering Canada’s Economic Growth

Taxes and Levies Hindering Canada’s Economic Growth

posted on April 18, 2013
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OTTAWA, April 18, 2013 – The final report of a key Senate committee study on air travel provides a framework for the modernization of Canada’s aviation policy that will make our travel sector more competitive, according to the Tourism Industry Association of Canada. 

Titled One Size Doesn’t Fit All: The Future Growth and Competitiveness of Canadian Air Travel , the report was released by the Senate’s Standing Committee on Transport and Communications on Wednesday.

“The report clearly shows that the layers of taxes, fees and levies are hindering Canada’s tourism competitiveness,” said David Goldstein, President and CEO of TIAC.  “Airports and air travel should be treated as catalysts of economic activity, not opportune sources of public revenue. “

“Canada’s current aviation policy was developed almost two decades ago in a different historical context and has not kept pace with changes in global travel patterns,” said Goldstein.

Among the seven recommendations in the report were calls for:

  • The establishment of a National Air Travel Strategy that takes into account the particular needs of different regions;
  • The improvement of regional airport infrastructure to encourage economic growth;
  • The phasing out of ground rents for ‘hub’ airports that are part of the National Airports System; and
  • The transfer of federally owned airports in the National Airports System to the airport authorities that operate them

Implementing the recommendations would bolster the Canadian economy and our tourism competitiveness by reducing fares and improving access.  Implementing the recommendations would also curtail the leakage of Canadian passengers to U.S. border airports, which results in the lost economic activity of up to 5 million passengers per year.

TIAC wishes to acknowledge and thank the members of the Committee for their efforts throughout the two year study on issues related to the Canadian airline industry.

To view the report, visit: http://www.parl.gc.ca/Content/SEN/Committee/411/TRCM/DPK-AirSize/home-e.htm (opens in a new window)


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