(Nolan Kowal/paNOW Staff)

By Nolan Kowal

Feeling the effects

‘It’s going to trickle down’: P.A. hotels react to carbon tax hike

Apr 4, 2024 | 1:00 PM

This week’s carbon tax increase could be felt in the hospitality industry, according to a couple of hotel general managers in Prince Albert.

Mona Selander with the Coronet Hotel said she expects a trickle down effect due to higher prices.

“For us it’s across the board from our suppliers who are also now paying that increase to produce the goods and get them here,” Selander said. “When we see price increases we have to pass that along to our guests, so guests are coming here and there are likely to be menu price increases across the board, there’s going to be hotel rate increases across the board.”

“And so now instead of just being that one tax on our gas bill, now it becomes spread out over anybody that produces goods, ships goods, and so on. It’s inflationary no matter which way you look at it, as far as I am concerned.”

Selander says they haven’t raised prices just yet but suspects they may have to in the future.

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“It’s just going to be kind of industry wide, because everyone purchases consumables for our guests,” she said. “It really pretty much touches on everything we do.”

“I always thought it would be an interesting calculation…I wish someone had time to sort of figure it out all across the supply chain. It would be an enormous calculation.”

Flora Larson with Super 8 in Prince Albert shared a similar outlook.

“It’s going to trickle down to everybody because increased prices at the top eventually hit everyone which causes increases to us as well,” said Larson, adding that it’s possible they too will raise prices in the future.

“I’m hoping not, but until we start seeing some impacts of what it is going to look like…it is one of the possibilities that we may have to look into. We have to recoup our costs somewhere as our prices rise.”

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nolan.kowal@pattisonmedia.com