Harmonized Sales tax is coming in April.  So what does this mean for the traveller? For the next few months, we will be charging 5% federal sales tax and 10% on top of that.  So this means we are charging 15.5% tax on most purchases.  On April 1, the tax will be blended into one harmonized sales tax (HST) at a rate of 14%.  This means that for most purchases, the price will go down by 1.5%.

If only life were so simple.  Some goods are currently exempt from provincial sales tax.  On those, you are paying only 5% federal tax today.  Come April 1, the tax on some previously exempt items will rise to 14%. 

Confused yet? Let’s add in another wrinkle.  Some small businesses do not need to charge federal tax.  With the coming of HST, these businesses will have the option of charging the new HST or not.

Let’s take a small Bed and Breakfast as an example.  Let’s say your room rate is $100. Because they are exempt from GST, you would pay just 10% provincial tax for a total of $110. After April 1, this Bed and Breakfast decides to opt into the HST: your room will cost $114 or an increase of about 4% to you the visitor.  The other B&B that also charges $100 for their room decides not to opt into HST and your cost for a room is $100.  That is about 10% less than you were paying last year.

So it pays to check.  When you are making your accommodation reservation, ask for the full price with tax.  That way there will be no surprises. See that the Beside the Trail Bed and Breakfast has decided to charge no tax next year.

Enjoy your PEI holiday.

Guy

When you travel, do you prefer to stay at a Hotel/Motel or do you prefer to stay at a  B&B/Inn?

 If you are looking for privacy, luxury, or special services, a hotel may be a better choice.  You can find hotels and motels in various price ranges to suit any budget. In Prince Edward Island, the prices range from $50 to $300.

The price of Bed and Breakfasts ranges from $50 to $200.  So if I am looking for value for money or simply the lowest priced accommodations, why pick a Bed and Breakfast instead of a hotel?

 When you stay at a Bed and Breakfast, you are a guest in Someone’s Home. That usually means that each guest room is decorated according to your hosts’ tastes and preferences. So at a B&B, you will be getting away from the cookie cutter rooms of many hotel and motel chains.

The Price of the Bed and Breakfast usually includes the cost of Breakfast.  I say usually because there are some regional differences. If in doubt, check with the owners when you make your booking. Breakfast can be the highlight of your day.  If you are at a 4 or 5 star B&B, you will probably get a breakfast menu, similar to a small restaurant. At a 2 or 3 star establishment, you will often get “cook’s choice” with a  few options or substitutions. Some Bed and breakfasts will offer a continental breakfast similar to what you might find in some motels.

My most important reason for choosing a B&B is  the personal touch.  The owners will often greet you, and you will have a chance to chat with your hosts during breakfast.  Many will offer suggestions for your next day’s adventure.  They might also take a genuine interest in your previous day’s experience and offer ideas to make your next day more enjoyable.

For the most important question: Shared or Private Bath? In Canada, we have a standard star rating for B&Bs. You cannot get more than 2.5 stars unless you have a private bath.  A Bed and Breakfast might have luxurious accommodations and extensive breakfasts, but if they do not have private baths, they will not get 3 stars. So if a private bath is an issue for you, check the star rating.

You may find your Bed and Breakfast on a booking site or on a government tourism site like peiplay.com. Before making your choice, I suggest you visit the establishment’s web site.  Look for pictures of the grounds and the rooms. Look also if the web site has an “about us” or “faq” section.  Since your B&B stay amounts to a personal experience, you would like to see that the website portrays the type of atmosphere you think you will enjoy. For example, look at this “about us” page of Beside the TrailBed and Breakfast. You see pictures of the hosts and a short biography.  You also see they have pets. Looking at the sidebar, I also see rooms and rates, FAQ, and reviews. They also provide a link to their Trip Advisor reviews to show confidence in the ratings provided by their guests.

In later posts I will explore accommodations choices in greater detail. I would love to hear the reasons you might have chosen to stay (or not) at a B&B.  Happy trip planning.

Guy

Inn, Bed and Breakfast (B&B), or Tourist Home, Homestay Home?  What’s the difference?

An INN is usually a “business” with 10 or more rooms, a common area and a dining room.  It is common but not expected that you can get meals all day in an Inn – you should check if you are planning to have more than breakfast at the Inn.  So what is the difference between an Inn and a Motel?  A Motel is usually run by a manager and employees and an Inn is usually run by the owner and employees.  So you are more likely to get a personal experience at an Inn.

There are 15 Inns in PEI that range in price from $100 to $300 per night.

A Bed and Breakfast is a private home where one or more bedrooms have been converted for guest use.  B&B are also called Tourist Homes or Homestays.  Usually, a B&B will have 1 to 4 guest rooms but I have seen as many as 7.  A Bed and Breakfast is usually run by Mom and Pop – the owners.  Except for the 5-star establishments (see below), they do not usually have front desk staff, porters, chefs, and elaborate menus.   Often, the bedrooms are on the second floor and, particularly in a “heritage” home, it could be a bit tricky to haul your large suitcase upstairs.

The nice thing about a B&B is the feeling that you are a guest in the host’s home.  You will probably feel at ease talking about your holiday and by all means feel free to ask your hosts for advice or recommended attractions.  B&B operators usually like to get to know their guests.  Some feel they cannot get to know you in one night, so it is common to see a minimum 2-3 night stay.  If you are driving, remember that PEI is small.  If you pick accommodations centrally located (say between Kensington and Charlottetown), you could spend your entire stay at the same place without doing a lot of extra driving.

Breakfast

The name Bed and Breakfast implies Breakfast is included but you should check if that is a hot breakfast, continental, full breakfast, etc. Unlike an Inn, breakfast is usually cook’s choice and the only menu variation is likely to be for food sensitivities.  It is best to advise your host ahead of time.  Rest assured that you can usually count on a good hearty meal.

Amenities

Amenities vary greatly in B&B’s.  There are usually one or more sitting rooms also referred to as common areas where you might find a TV, books, movies, board games, etc.  With the internet gaining popularity, you will find the majority have high speed Internet.  From what I have seen, it is not obvious if this means a computer for guest use or that they have wireless.  Something else to check.

Bathrooms

One of the biggest concerns about staying at a B&B is a shared bath.  Even if you have a private bath, it may be outside the room.  Read the room descriptions for clues and if not clear, get the necessary clarifications prior to making a booking.

Star Rating

Shop by the stars!  In Canada, an organization called Canada Select inspects accommodations and awards stars.  The more stars the better you say?  Perhaps so, but the more stars the more the price!  Don’t be fooled by the relationship between stars and price.  A 4 star B&B in  a rural area may be less expensive than a 3 star B&B in the city – It has to do with property values, taxes, etc.  If you check Canada Select, they say that you get better amenities including private bath at the 3 star level.  I know for a fact that a B&B cannot get a 3-star rating unless it has a private bath, but it is possible for an accommodation to have a private bath and still have only a 2.5 star rating.  The budget minded should look at 2, 2.5 and 3 star B&B.  If you expect luxury and special services, go for the 4 and 5 star B&B.

Cancellation Policy

I mentioned that B&B typically have 1 to 4 guest rooms.  Particularly in Prince Edward Island where the HIGH tourist season is about 10 weeks, losing out on a room rental can mean a significant loss of yearly income.  Read the fine print and ask if it is not specified.  Cancellation policies can fall in many categories:

• 2-day notice
• non refundable administrative fee even with several day’s notice
• one full night’s fee
• the entire cost of the stay unless rooms can be re-rented
• the entire cost non-refundable

This summer, there are 154 bed and breakfast listed on the government website.  The online vacancy listing makes it easier to find vacancy for your planned stay.  You can also refine by amenities, location, stars or price.

I hope you come visit PEI this year.  I also hope this information on accommodations has been useful.  If you have experiences with B&B, Inns, Motels, etc., I’d love to hear about them.

Tomorrow, “Just crafts”

Granny ~00~