The Foreign Convention and Tour Incentive Program (FCTIP) provides GST/HST relief to non-resident consumers and non-resident non-GST/HST-registered businesses for short-term accommodation in Canada included in a tour package and for certain properties and/or services used in the course of conventions held in Canada. More detailed information such as definitions, forms, calculations and eligibility can be found on the Canada Revenue Agency website here
The 2017 Federal Budget announced some changes to the FCTIP.
After further consultation with the government the cut to part of the FCTIP is part of a larger effort to address tax measures that have had a limited impact, have had low take-up, or duplicate other forms of federal support. Specifically, Budget 2017 proposes to repeal the Goods and Services Tax/Harmonized Sales Tax (GST/HST) rebate payable to non-resident tourists and non-resident tour operators in respect of the accommodation portion of tour packages. We now have clarification that the tour packages component is being dropped but the conventions component is not. Therefore, instead of "FCTIP" the "Tour" portion is being dropped and will now be "FCIP." Components applicable to the conventions sector will remain the same.
According to Government officials, the rebate is complex and costly to administer, and benefits only a narrow segment of the Canadian tourism industry. The Government will instead invest in enhanced tourism marketing as shown through commitments to stabilize Destination Canada's budget at a level of $95.5 million going forward, and invest millions in indigenous tourism and the collection of tourism statistics.