INSIDER Volume 11 - Issue 4 - February 23, 2011
» Announced Today: All Inclusive Vacation Packages to be Sold In Ontario
Ontario is taking the next steps to update alcohol laws to better serve Ontarians. The proposed changes will remove unnecessary barriers and restrictions for special events, festivals, and licensed establishments. This will provide Ontarians with a more enjoyable experience, and improve tourism and local economies. One of the items to be modified is the ORHMA recommendation in
Allowing all-inclusive vacation packages to be sold in Ontario . This was an item brought forward to the Ministry of Consumer Services and to the Alcohol and Gaming Commission (AGCO) in 2010 and is included in our Open for Business submission. The ORHMA looks forward to involvement in the upcoming consultations focused on these proposed changes.
» Tourism Funding – Ontario’s Regional Tourism Organizations
The year 2009 brought on significant initiatives that were aimed on changing the fundamental management structure of Ontario’s tourism. The Competitiveness Study Recommendations, the formation of Regional Tourism Organizations (RTO’s) and the upcoming Regional Legislated Levy (RTL) represented initiatives that would lead to a goal of doubling Ontario’s tourism revenues by the year 2020.
The competitiveness study included industry recommendations addressing the key impediments Ontario’s tourism has been facing. The recommendations are solutions to turning around tourism revenues. The idea of the thirteen Regional Tourism Organizations originated not from industry but from the Greg Sorbara study. The thirteen RTO’s are all yet to be completely structured. Some have been progressing ahead while others are still trailing in their formation.
Government’s announcement of the $40M to support the set up of RTO’s and tourism’s marketing activities was later followed by an additional $25M annually for the two years (ending in 2012) to support transitional funding for Destination Marketing Organizations (DMO’s) previously operating with a DMF validated program. The optional RTL if favoured and voted by the industry was expected to become law by 2012 and the accommodation properties will then charge the set fee on the guest room rate. This process has been stagnant bringing concerns that the funding will be running out in the validated DMO’s. The industry including the ORHMA is asking for an extension of transitional funding to 2013 and consideration of making this funding permanent.
The ORHMA has always positioned the RTL as only an option available to the RTO to support marketing activities. While the RTL is welcomed by specific RTO’s it has not been seen by many operators as the model to success due to the fear of demand losses prompted by another higher “tax” over the HST as well as seeing conflicts with the way distribution of the funding will be spent within the RTO. For the long term success of Ontario’s tourism, the government needs to look at reducing the existing 13% HST to 10% and utilize the 3% for promotional activities that would see growth in tourism revenues and in jobs. We are presenting this recommendation in the provincial pre budget submission along with options.
» Provincial Budget 2011 – ORHMA Pre-Budget Recommendations
Each year the ORHMA participates in discussions with government officials regarding the hospitality and tourism industry’s fiscal priorities and recommendations to the government for inclusion in the provincial government. This year the ORHMA, in consultation with members and in partnership with other business groups, has submitted a series of recommendations for the 2011/12 provincial budget including the following:
Tourism
• The $25 million funding for the validated DMF jurisdictions in Ontario continue past the year 2013 and that this funding be made permanent
• The establishment of a “Success Team for Tourism Investment” to work within a measurable business plan to drive activities and be empowered to work with all levels of government in removing regulatory barriers and employ incentives for beneficial use, also the development of a Tourism Investment Strategy in the form of a loan guarantee program and consider the re-introduction of the Tourism Redevelopment Incentive Program (TRIP) to provide loan guarantees to support new or expanded tourism assets
• The inclusion of tourism projects as part of the anticipated stimulus in the Canada-Ontario Investment Program in order to jump start employment and ensure future sustainability of the tourist industry
WSIB
The WSIB cap, in 2011 and future years, any actual rate group premium rate increases to 5%
the WSIB freeze all WSIB premium rates in 2012 and until the WSIB Funding Review is complete
Minimum Wage
All Minimum Wage rates be frozen for 2011 at 2010 levels. An increase to the Employer Health Tax threshold from the current level of $400,000 to $1,000,000 to assist business operators offset the burden of year over year increases to the minimum wage since 2004
Apprenticeship Training Tax Credit (ATTC)
the eligibility criteria for the existing Apprenticeship Training Tax Credit (ATTC) be broadened to include the positions of Culinary Cooks and Bakers
Beverage Alcohol
The 6% licensee markup fee implemented in January, 2006 be fully eliminated
the revocation of the City of Toronto’s authority to levy a liquor tax in order to prevent a reduction in sales, lower operating margins and the endangerment of thousands of jobs in Toronto’s licensee community
To review the entire 2011 ORHMA Pre Budget submission click here.
» Minimum Wage Freeze for 2011
This past week the government announced that minimum wage rates will remain unchanged in 2011. This was indeed welcoming news for the Hospitality Industry and all operating businesses in Ontario. Employers have been faced with continued annual minimum wage increases between 2004 and 2010 in an unprecedented climate that resulted in significant revenue shortfall. The impact from the global recession and other economic factors was not an appropriate time for raising these types of wage rates. These rate hikes exerted huge pressures to the expense line and strained hospitality operations with many been forced out of business. For more information click here.
» Ontario Legislature Resumes
The Ontario Legislature resumed on Tuesday February 22, 2011. The provincial budget is expected to be released in March and is the last budget prior to the provincial election, taking place on October 6th.
Of particular interest to ORHMA members are the passage of Bill 110, Good Government Act, which proposes transferring hearings powers from the Alcohol & Gaming Commission of Ontario to the Licence Appeal Tribunal. The ORHMA had called for this significant policy shift for years and spoke in support of the proposed legislation at a Standing Committee meeting in late 2010. Bill 110 is an omnibus bill, making several amendments to numerous pieces of legislation, and has had considerable debate in the Legislature following public hearings but has not yet been called for a 3rd Reading final vote. The ORHMA is also closely monitoring Bill 114, Protecting Employees’ Tips Act, and continues to call on its members to bring the industry’s opposition to this bill to the attention of your local MPP.
» Did You Know?
*Application for Board Appointments to the Ontario Colleges of Trades’ Deadline Extended - March 31, 2011
The applications for appointments to the Ontario Colleges of Trades’ Board of Governors, Divisional Boards and Trade Boards has been extended to March 31st 2011. The Ontario College of Trades is the first self-regulated body in Canada dedicated to professional tradespersons – established by the trades for the trades. The College will belong to its members, both tradespersons and employers – giving them a voice in skills development and training issues that impact their work and their businesses.
Appointments Council is seeking applications for positions in the governance structure of the Ontario College of Trades, including the Board of Governors, Divisional Boards and Trade Boards. The Council is actively seeking a diverse representation of employers and workers to represent their trades and sectors and provide advice to the College as they move forward. This is an opportunity for you, as member of one of the fastest growing sectors in the province, to have a say in decisions that will impact the way that you carry out your practice and run your business. Click here for more information and an application.
*Ontario Appoints Interim Chair to AGCO as David Gavsie Leaves
Ontario has appointed Eleanor Meslin as interim chair of the Alcohol and Gaming Commission of Ontario (AGCO). The term of the appointment is for one year.
She has held several senior-level positions with the Government of Ontario, including acting ombudsman, executive director of the Ontario Women's Directorate and assistant deputy minister in the Ministry of Consumer and Commercial Relations. Meslin replaces former chair David Gavsie, who has accepted the position of chair of the Ontario Civilian Police Commission.
*Who is STR?
STR is the recognized leader in providing accurate and actionable data to the lodging industry. Currently, 50% of the total room supply within Canada utilize the STAR Program to analyze performance versus their competitors and market. Your participation is also key to ORHMA’s increasing market intelligence and your data is always held in the strictest confidence.
View the latest report now >> STR Multi Segment Report: Supply and Demand – December 2010.
» HAC's Travel Intentions 2011 Survey Released
On February 16th, the Hotel Association of Canada (HAC) issued the 2011 national Travel Survey. The Survey shows that 21 percent of Canadians are travelling to the United States to purchase and travel on less expensive airline tickets. This represents more than 5 million return trips; a multi-million dollar loss for Canadian airlines, hotels, restaurants as well as Federal, Provincial and Municipal tax revenues. Our statement to the government is Canada's aviation cost structure is clearly a deterrent to travel and tourism. The Hotel Association of Canada is requesting the Government of Canada to take immediate action to:
• reduce airport ground lease rents;
• excise taxes on fuel and air navigation and control fees;
• make the Canadian Air Traveller Security Charge national in scope and not user pay.
It recommends the Government of Canada be pro-active in negotiating liberalized bilateral air transport agreements. The ORHMA sits on the Board of the Hotel Association of Canada and supports this positioning as it limits success growth to Ontario’s Hospitality. To review the HAC survey click here.
» Increased Transparency and Disclosure by Payment Card Networks and Their Payment Processors Came Into Effect February 17, 2011
As part of the CODE OF CONDUCT FOR THE CREDIT AND DEBIT CARD INDUSTRY IN CANADA payment card networks will make all interchange rates applicable to their products and any upcoming changes to these fees easily available on their websites. As well, merchant statements from their acquirers must include the following information presented in a clear and simple manner:
• the effective merchant discount rate for each type of payment card from a payment card network
• interchange and any other rates that acquirers charge the merchant
• the number and volume of transactions for each type of payment transaction
• the total amount of fees applicable to each rate
• details of each fee, including the payment card network to which they relate.
For Additional information click here.
The ORHMA is founder of the “Stop Sticking it to us” coalition group that has influenced government to develop and implement the Code of Conduct for the debit and Credit Card Industry in Canada and the Competition Bureau of Canada announcing an investigation to VISA and Master Card pricing practices. Definitely there is more to be done!
» EMV Guide – What is a Chip Card?
Understanding EMV - EMVCo was formed in February 1999 by Europay®, MasterCard® and Visa® to establish and maintain global interoperability and acceptance of chip payment cards. EMV technology defines how the applications on the chip work, including debit, credit and additional programs such as gift and loyalty cards.
What is a Chip Card? Chip and PIN payment cards are embedded with a microchip that can store and process data securely and assists in enhancing security, reducing fraud and chargeback levels. The data stored on the chip is virtually impossible to copy and helps to protect payment information and prevent certain types of payment card fraud. Chip technology is designed to evolve as future enhancements become available. For the complete article, click here.
For other related articles click on links below:
- Helping to Protect Your PIN Entry Devices and Business From Fraud – click here
- Important Information about the Migration to Chip Cards in Canada – click here
For more information on Chip and PIN, please visit: http://www.chasepaymentech.ca/
» Food Safety Member Alert – Ungraded Eggs Found in GTA
Jim Chan, Manager Healthy Environments at Toronto Public Health, told the Toronto Star more than 100,000 ungraded eggs, as confirmed by the Canadian Food Inspection Agency (CFIA) were discovered at a distribution warehouse in Scarborough, ON. According to the Star there are nine food retail and foodservice companies that purchased the ungraded eggs currently under investigation with possible charges pending.
Ungraded eggs may be more likely to spread salmonella which can cause serious health complications (and possibly death) for small children, the elderly and immune-comprised adults. Protect your business and clients by knowing the facts and acting accordingly.
• Do not buy eggs directly from people doing door to door sales.
• Only buy eggs from licensed or regulated food suppliers.
• Ask if eggs are graded or from a licensed Grading Station (check invoice, name of company on box as well as the expiry date on the box).
• Look for visible dirt, faecal matter, feathers, cracks etc. on shells and in containers.
• Make sure any eggs (or food/meat) delivered to your kitchen are kept cold or refrigerated (4°C internal temp).
Ask suppliers for official company invoices/receipts and Keep all food invoices or receipts at the restaurant/hotel in case of a food recall or if the PHI asks to see them.
Download the attached inspection guideline from Toronto Public Health, click here.
» ORHMA Helps Members Generate Payments through Innovative Energy Management Program from EnerNOC
OAKVILLE, Ontario, February 10, 2010 – ORHMA announced a new partnership with EnerNOC, LTD, a company that pays energy users for reducing energy usage during times of peak electricity demand. The program, known as demand response, alleviates Canada’s reliance on fossil-fuel-burning peaking power plants, and provides a more environmentally-responsible and cost-effective alternative to traditional electricity supply options.
The process is simple: EnerNOC works with energy users, like hotels, to develop an energy reduction plan that will not affect safety or comfort of staff and guests. The company installs complimentary smart meters used by participants to monitor their energy usage in real time, both during events and around the clock. This valuable insight into energy usage patterns can be used to identify additional savings. When conditions on the electric grid require demand response resources to be dispatched, EnerNOC notifies participants, who then implement their energy reduction plan. Participants receive two types of payments: a “capacity payment” simply for being on standby and an additional payment when a company is asked to perform.
Click here to view the full article and more information on the following:
• EnerNOC no cost demand response program.
• Delta Hotel and Resort’s – Earning more than $13,000 in annual payments – case study report.
To find out if your facility qualifies for participation in EnerNOC’s program, please contact Lauren Rasmussen at lrasmussen@enernoc.comor 289-838-2244 or visit www.enernoc.com/get-started
» Loss Prevention: Water Damage by Western Financial Insurance
Careful preparation in the fall and frequent monitoring during cold weather is vital in the prevention of water damage losses. Here are a few helpful tips:
• Check rooms frequently during cold snaps to ensure that all windows and exterior doors are closed properly and that heating systems are functioning properly.
• Have housekeeping staff visit rooms shortly after guests check out to ensure that windows are closed and heat has not been turned off.
• Do not turn down thermostats below 10°C (50°F) in unoccupied rooms, especially during cold weather.
• Install low temperature alarms that will alert an alarm center if inside temperatures drop to 5°C (41°F).
• Locate emergency shut-offs for water lines and sprinkler systems and ensure that staff know where the shut-offs are located and how to shut them down to reduce the damage.
• Drain water lines, toilets and tanks in buildings or sections of the property that may not be used during the winter.
• Check heating and water systems frequently during the winter for early detection of problems.
Click here to view the full article on Water Damage Claims. For more information on Commercial Insurance, Risk Management, and to access forms, news and bulletins from ORHMA’s Extranet site with Western Financial Group, click here.
» Have You Registered for the CRFA Show Yet?
Please join us for the 2011 CRFA Show, Canada’s foodservice event of the year! Restaurateurs from across Canada will converge at the Direct Energy Centre, Toronto on March 6-8, 2011.
As ORHMA members, you receive complimentary registration to the CRFA Show. To register, click here. Enter ORHMA2011M in the box labeled Source Code and follow the instructions. Registration is open until March 4th only and then you can pick-up your badge at the show.
We look forward to seeing you at the show and welcoming you to our booth (#1648)!
» ORHMA Members Save on Defibrillators
February is Heart Month and Heaven Can Wait Emergency First Aid Training is having a huge sale on Defibrillators with discounts ranging from 5-10%. This sale will extend into the month of March and is exclusive to ORHMA members. Act Now!!! Contact Heaven Can Wait today by emailing david@heavencanwait.biz , visit their website for more information at www.heavencanwait.biz.
» Prepare Your Team for the Upcoming Summer Season!
As many tourism and hospitality businesses know, we are heading into the busiest time of year. Be sure your front line and management team is prepared and equipped to keep customers satisfied and coming back time after time. Customer Service training is an essential component for maintaining consistent service standards and an excellent service culture within your company.
OTEC offers over 40 training programs designed for every member of your team, from front line employees to managers and owner/operators. Take part in the recently enhanced Service Excellence 2011 and learn how to create memorable service experiences that will ensure customer loyalty. Other workshops include Engaging Generation Y, newly developed Building a Culture of Service Excellence… and many more! Click here to check out OTEC’s winter and spring training calendar.