APRIL 19-22, 2021 | OTTAWA, ON
CANADIAN RV & CAMPGROUND INDUSTRY AWARENESS WEEK
The Canadian Camping and RV Council (CCRVC) is a national, volunteer federation of the Provincial Private Campground Owners Associations, their Campground members, the RVDA of Canada and the Canadian Recreational Vehicle Association (CRVA). CCRVC was incorporated in 2013 with a mandate to provide for the betterment and to support the Canadian RVing and Camping Industry in Canada.
Canada’s RV and Camping Industry includes 2347 Private Campgrounds, 450 RVDA Dealers and CRVA Manufacturers who collectively employ over 66,000 Canadians and generate over $3.3 Billion in Tourism spending and $6.1 Billion to the Economy in Canada. In a survey conducted by the Association in 2016, it was found that over 5.8 million Canadians or 22% of the adult population enjoyed camping as a lifestyle.Private Campgrounds offer an opportunity for middle-class families to spend time together, create life-long memories and discover Canada’s natural landscape. Camping is an affordable activity for the middle class and creates a strong sense of community that is unique to this form of travel accommodation across Canada, particularly during these difficult pandemic times where international travel has been strongly restricted.
CURRENT ISSUES AND POLICIES CURRENTLY IMPACTING PRIVATE CAMPGROUNDS
CCRVC strongly advocates that the Government of Canada recognize the income earned by campgrounds as “active business income” for the purpose of determining eligibility for the small business deduction.
Small Private Campgrounds throughout Canada continue to advocate the Federal Government to endorse change in the current Income Tax Act or enact other legislative measures that clearly distinguish small family run campgrounds with less than 5 full time employees as an “active business” and thus eligible for the small business tax deduction.
Income Tax Act s. 125(7)
A specified investment business is a corporation whose principal purpose is to derive income (interest, rent, dividends and royalties) from property, unless the business employs more than 5 full time employees. Income from property would include rental or leasing income from land or buildings, but would exclude income from renting or leasing moveable property such as machinery and equipment. A specified investment business is not eligible for the small business deduction and the income is taxed in the corporation in the same way that investment income is taxed.
The classification of a Campground being assessed as a “Specified Investment Business” is ambiguous and up to arbitrary determination by the Canada Revenue Agency and the issue remains to be the #1 threat to not only Private Campgrounds, but to all RV and Camping Industry Stakeholders. The threat that a Campground Owner may be re-assessed or denied the SBD in any given year has resulted in businesses holding back infrastructure investments and improvements and/or hiring additional seasonal staff at a time when the camping industry has become more important than ever before. We are asking for your help to finally address our Industry’s ongoing #1 concern in the upcoming Federal Budget so that we can better provide for Canadian Campers that need to get outdoors and recreate during this difficult time.
The RV and Camping Industry has been successful attracting new onsumers to the RV Lifestyle. However, at a time when RV activities is increasing, the number of camping destinations have been declining, resulting in a need for more campgrounds and campsites to align availability with our growth.
With the RV Industry’s growing popularity with young Millennials and retiring Baby Boomers, it has become increasingly apparent with a surge in demand for camping sites during the pandemic. Campsites across Canada are now booked months in advance and the shortage in campsite indicates a need to develop new destinations for consumers. To remain viable, the RV Industry asks to work along with Government policy makers to not only increase the number
of Federal, Provincial and Private Campsites available to our consumers, but to help enhance their experience with increased Wi-Fi capabilities, services and infrastructure improvements in RV Parks and Campgrounds. Without these improvements, we risk disenchanted consumers leaving our lifestyle altogether.
Canada has a tremendous natural heritage with magnificent landscape and pristine waters. It is important that all Canadians be able to experience and explore what this country has to offer, both these pandemic times and into the future. The Federal government should provide more funding to Destination Canada to advertise about domestic tourism to Canadians.
The RV and Camping Industry would also be interested in participating in the Parliamentary Outdoor Caucus along with other like-minded groups who conduct business in Canada. We would be grateful to be included in critical discussions that will have impact on the future of the Canadian RV and Camping Industry.