Alberta’s hotels play an essential role in fueling the province’s tourism economy; but rising operating pressures and an increasingly uneven competitive landscape continue to challenge the long‑term sustainability of the sector.
To support hotel operators and strengthen Alberta’s tourism growth, the AHLA’s 2026 Budget Submission identifies four priority actions the Government of Alberta can take to improve fairness, reduce pressures, and drive economic impact.
1. Dedicate 100% of the Tourism Levy to Travel Alberta
The AHLA opposes any increase to the Tourism Levy and appreciates it remaining at 4%. To meet Alberta’s tourism goals, Travel Alberta needs full, stable funding. Allocating the entire Tourism Levy to Travel Alberta ensures the sustained investment required to market the province and grow the tourism economy.
2. Increase VLT Commissions to 18%
Hotels operating VLTs provide staffing, security, space, and service, but commission rates have not kept pace with operational realities. Increasing commissions to 18% would restore fairness, reflect today’s gaming landscape, and provide meaningful financial support for operators and the province.
3. Establish a Provincial Framework for Regulating Commercial Short‑Term Rentals
Commercial short‑term rentals operate like hotels but without consistent safety, tax, and regulatory oversight. A provincial framework would protect consumers, level the playing field, and ensure fair competition across the accommodation sector.
4. Reject a Municipal Accommodation Tax
A Municipal Accommodation Tax would increase costs for guests and add administrative burdens for hotels already facing financial strain. Rejecting this tax ensures Alberta remains competitive and affordable as a travel destination.
Building a Stronger Future for Alberta’s Accommodation Sector
These four recommendations are essential to reducing pressures on hotel operators, restoring fairness in the marketplace, and supporting the long‑term growth of tourism in Alberta. With the right policy tools in place, hotels can continue driving economic activity, creating jobs, and delivering exceptional visitor experiences.