Guide to Hospitality and Tourism Law in Canada PDF

A Guide to Hospitality and Tourism Law in Canada 1 CHAPTER 9 The Legal Relationship between Innkeepers and Guests Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism...

A Guide to Hospitality and Tourism Law in Canada 1 CHAPTER 9 The Legal Relationship between Innkeepers and Guests Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 2 Introduction The relationship between innkeeper and guest has become more complex The guest and the innkeeper—a legally binding relationship Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 3 The Innkeeper / An Inn The Innkeeper An Inn Is willing to provide Establishments such as suitable accommodation resorts, hotels, hostels, in exchange for bed-and-breakfasts, reasonable motels, motor inns, short- compensation term private property Compensation is tied to rentals, and campgrounds quality Has a formal legal definition Copyright © 2020 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 4 The Guest Include tourists, business people, travellers, conventioneers, family members Stay at the inn with the consent of the keeper Guest expectations: attractive, safe, comfortable shelter, a variety of amenities and services Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 5 Complimentary Rooms The legal duties, responsibilities, and obligations owed by the innkeeper to a paying guest are still valid Accommodation property does not seek compensation for the room or rooms in question, which are therefore provided at no expense to guests Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 6 Non-Guests / Permanent Residents Non-Guests Permanent Residents Includes: Long-term stay Visitors of guests Guest and hotel negotiate Attendees of events a long-term rental agreement Pedestrians passing That agreement changes through the relationship to a Permanent residents landlord and tenant Retail lease holders relationship Copyright © 2020 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 7 The Landlord-Tenant Relationship A long-term rental of a hotel room in all likelihood makes the guest a tenant If contested, the court would look at different criteria and variables to determine the status of the occupant In Alberta, a guest is a tenant if they have lived at the accommodation property for at least 6 consecutive months Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 8 The Landlord and Tenant Relationship R. v. Lowry, 2006 ABPC 209 is a Calgary court case. Lowry was charged with assaulting and resisting police who went to the Shamrock Hotel to remove Lowry from his room due to his behavior. Lowry claimed he was a tenant not a guest and required notice under the Residential Tenancies Act before being evicted. The court finds that the police were not in the lawful execution of their duty when Lowry resisted and assaulted them, and he is found not guilty on all counts. Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 9 General Public Access A hotel property has a legal duty to accept and provide for all paying customers as long as those customers comply with the house rules The property cannot discriminate in any way, shape, or form against a member of the general public Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 10 Obligation to Provide Accommodation A legal obligation to provide accommodation to any law-abiding citizen who wants/needs it and has the means to pay Staff must welcome and be willing to assist Can refuse accommodation if: No rooms due to renovations or repairs Rooms are blocked for guest reservations Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 11 Screening Guests - 01 Inns are prepared and encouraged to screen guests The basis for such screening cannot be any of the protected categories under Human Rights legislation Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 12 Screening Guests - 02 Under the Alberta Innkeepers Act, any person who presents himself or herself as a guest must appear to be able and willing to pay a reasonable sum for the services and facilities offered, and is in a fit state to be received Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 13 Screening Guests - 03  An innkeeper can refuse or evict guests with contagious diseases such as cholera, influenza, COVID or tuberculosis. AIDS does not qualify as a contagious disease  There must be a real or imminent threat of transmission Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 14 Refusing Accommodation An innkeeper can refuse accommodation when there are sufficient grounds to believe the guest Is more than minimally impaired Carrying a deadly contagious disease Well known for causing damage/disturbances Well known for failing to pay Likely to engage in illegal/immoral acts Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 15 The Check-In Registration Process The guest–innkeeper relationship begins when: A guest with a reservation engages and consults with an agent of the hotel A guest with no reservation appears but hotel can accommodate the walk-in Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 16 The Check-Out Departure Process The guest–innkeeper relationship concludes when: The guest has paid and checked out Checkout time has passed The room bill has been presented; the guest refuses to pay The property has served notice that the guest must remove himself or herself from the property by a certain time as identified in the notice Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 17 Innkeepers Have Rights Too Can refuse based on: The right to set: A full house Room rates No luggage Room assignment Suspicious Room access behaviour/delinquent Compensation guests Set house rules and Pets and emotional regulations support animals except service animals Copyright © 2020 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 18 Right to Establish House Rules Innkeeper may establish/enforce REASONABLE house rules. Eg. No glass in the pool area; no barefeet in lobby; no horseplay. Protects the inn and guests from themselves and others House must make reasonable efforts to communicate house rules to guests and warn guests about consequences of breaking rules Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 19 The Right to Evict Guests - 01 Eviction must be done properly and be prepared to show proper cause Guest does not have to be physically harmed for inn to be liable for improper eviction Eviction occurs the moment a guest is informed that the innkeeper wishes guest to leave and conduct going forward is subject to court review Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 20 The Right to Evict Guests - 02 Request to leave should be made privately If guest refuses, ask again to leave If guest still refuses to leave, call police Discretion and courtesy should be used at all times Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 21 The Right to Evict Non-Guests A person in an inn with no intention of becoming a guest or invitee can be properly asked to leave Upon refusal to leave, te inn can use reasonable force to evict the trespasser Any eviction (guest or otherwise) should be handled with care Never use excessive force Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 22 Nonpayment Hotel may request guest to pay for services to date. Guest must give reasonable explanation for refusal to pay or face eviction for nonpayment. Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 23 Persons of Ill-Repute Inn can evict persons of ill-repute including prostitutes, gamblers and drug dealers Inn can face legal action if the eviction was improper or the grounds for removal were false Rarely is it obvious that a hotel room is being used for prostitution or gambling Decision to refuse accommodation or to evict should only be made after careful consideration Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 24 The Check-Out Departure Process The guest–innkeeper relationship concludes when: The guest has paid and checked out Checkout time has passed The room bill has been presented; the guest refuses to pay The property has served notice that the guest must remove himself or herself from the property by a certain time as identified in the notice Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 25 Guests Have Rights Too Can stay if can pay Receive message, Be entertained packages, mail Bring personal effects Access to police, fire, onto property medical services if Have transparent needed Be secure on premises billing or full disclosure Privacy Copyright © 2020 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 26 Guest Rights The Right to be Entertained This simply means that a guest is entitled to receive hospitality and to be treated in a respectful and courteous manner. The innkeeper should ensure guests endure no willful or careless treatment that would cause humiliation or distress Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 27 Right to have Luggage Admitted The innkeeper must not only admit the guest but also their luggage Items for convenience or personal use are receivable Luggage does not include items not needed for those purposes Innkeeper does to have to accept baggage if the traveler has no intention of being accommodated at the inn (except horses) Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 28 Right to Full Disclosure of Charges Guests are entitled, in advance, to be advised of the room rate and costs of extra services that may be billed to the room for example, phone charges and minibar. Charges should come as no surprise to the guest Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 29 Right to Privacy / Exclusive Use Once assigned a room, the guest has a right to privacy and exclusive use of the room. The hotel staff can only enter the room as follows: Permission of the guest An emergency To perform housekeeping duties To perform reasonable maintenance Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 30 Right to Privacy / Exclusive Use To move the guest from one room to another To re-enter the room and terminate the innkeeper- guest relationship if payment is past due and the guest cannot or will not pay In all other circumstances, the inn must treat the guest room like a private residence Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 31 Right to Proper Handling of Mail The innkeeper must deliver mail, faxes, telegrams and packages to the guest as soon as reasonably possible Contents of all communications should be kept confidential In all other circumstances, the inn must treat the guest room like a private residence Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 32 Right to Security of Property Under common law, innkeepers had a duty to protect guest property for the duration of the innkeeper-guest relationship This common law duty has been modified by the Innkeepers Act so the innkeeper is only responsible for loss or damage occasioned by negligent staff. Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 33 CHAPTER 10 Managing Employees Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 34 Introduction Human Resources’ (HR) principal role—to influence the workforce’s mindset and behaviour Encourage personnel to embrace organization’s core products and take pride in contributions Management must accept responsibility to provide a safe work environment/promote positive employee behaviour Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 35 Knowledge / Standards Knowledge Begins with communication Management by walking around (MBWA) Standards Five dimensions of service: tangibles, reliability, responsiveness, assurance, empathy Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 36 What Is an Employee? / Allocation of Labour What Is an Employee? Represents the operation, sells to the customer, delivers on company promise to the customer Allocation of Labour Job analysis  job description  job specification Needs analysis: determine gaps that may affect performance—gaps in knowledge, practices, skills Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 37 Employee Orientation Crucial—sets a tone for the workplace E.g., Four Seasons Hotels and Resorts—a heavy focus on corporate culture during orientation Manual of policies—overview of organization, job details, team environment Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 38 Orientation / Training / Development Employee Orientation Training, Development Enables learning Learn role, expectations Reduces anxiety Builds skills, talent Decreases turnover Fosters learning Boost morale Performance feedback Decreases recruiting Investment in employees and training costs Copyright © 2020 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 39 Setting Operational Performance Goals Figure 10.4: SMART Goal Setting Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 40 Motivating Employees / MBO Employees are motivated by The way they are treated Being able to perform their tasks Knowing what is in it for them Peter Drucker’s “knowledge worker” Management by Objectives (MBO) Goal setting, objectives, appraisal process Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 41 Employee Satisfaction / Social Media Employee Satisfaction Examine employee thoughts on the work, stress levels, pay, recognition, support Social Media and Employees Positive posts on social media enhance an employer’s reputation; opposite is also true Social media policies cover wide range of issues Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 42 Employee Empowerment Employment Equity Act (Federal) Provinces have their own acts that provide guidance/direction for employers E.g., Employment Standards Act (BC), The Saskatchewan Employment Act (Sask) Duty to accommodate (e.g., special software for those with visual impairment) Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 43 Safe and Healthy Work Environments Mental/physical health Pay equity: equal pay for wellness measures equal work Employee assistance Occupational Health and Prevention of Safety: workplace harassment The right to know Occupational health The right to refuse evaluations The right to participate Copyright © 2020 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 44 Employment and Social Development Canada Responsible for enforcing the Canada Labour Code, providing information to the Treasury Board of Canada Secretariat, and The National Occupational Classification (NOC) 2011 Under the Canadian Human Rights Act, substance dependence is a disability Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 45 Government of Canada—Human Resource Management Terminology Barriers (obstacles) Flexible work Conflict of duties arrangements Conflict of interest Inclusion Diversity Job evaluation standard Employee (classification standard) People management Entitled to work in Position Canada Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 46 CHAPTER 12 The Industry Today and Emerging Issues Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 47 Assessing Risk and Responding to Emerging Issues Hospitality and tourism businesses must monitor external issues that can threaten operations A comprehensive PESTEL (Political, Economic, Social, Technological, Environmental, Legal) situational analysis helps distinguish threats and mitigate risks Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 48 Cannabis Goes Mainstream Cannabis-based hospitality includes: CBD spa treatments, cannabis-infused food and beverage, marijuana pairings with meals (where legal), recreational usage, including smoking on property E.g., Vantage Hospitality Group’s cannabis-based health and wellness hotels E.g., Alberta Hotel and Lodging Association—support to establish guidelines/manage risk Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 49 The Evolving Laws Around Intoxication and Operating a “Vessel” Case example: The Ontario man convicted of impaired operation of a canoe Any vessel that transports you over water counts under impaired driving laws Vehicles on land must be motorized to be charged under impaired driving laws Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 50 Technology and Privacy Case example: The Marriott International hotel chain and a mass data breach One of the world’s largest data breaches The value of personal data Reasonable and fair compensation Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 51 Indigenous Rights and Land Development Pressures Case example: A Supreme Court ruling that removes barriers to developing a ski resort on sacred First Nation land The arguments The decision The impact of the decision Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 52 Gig Workers Unionize Case example: Foodora food couriers’ efforts to join the Canadian Union of Postal Workers (CUPW) The arguments The decision The impact of the decision Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 53 Freedom of Movement for Foreign Hospitality Workers Case example: Job mobility for temporary foreign workers—should temporary foreign workers be able to quit their jobs and remain in the Canadian workforce? The arguments The decision The impact of the decision Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 54 Toward a Sustainable Tourism Industry Case example: Over-tourism and the impact of COVID-19 to make a sustainable reset on tourism on a global scale The arguments The decision The impact of the decision Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 55 CHAPTER 11 Ownership and Property Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 56 Introduction Ownership structures of a hospitality entity vary: Sole proprietorship, partnership, corporation, or co-operative Management can also take many forms: Private, public, corporate, franchise, or real estate investment trust (REIT), or some level of management contract that varies greatly Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 57 Financial Commitment Equals Ownership An owner makes a financial commitment Sole proprietorship: most popular, owner/operator must have time, money, motivation Partnership: one or many partners; must agree on a partnership structure and organization Each partner has the legal authority to act Limited partnerships: general partner and limited partners (limited, or less, liability) Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 58 Financial Commitment Equals Ownership (cont’d) Corporation: common in hospitality; publicly or privately owned; lower tax rates Four important human components: Shareholder Board of directors Executive team Employee Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 59 Financial Commitment Equals Ownership (cont’d) Co-operatives: a separate legal entity; at least five members with equal voting rights and influence in decision-making Franchising: extremely commonplace; franchise licence sold to franchisee Franchisee takes all the risk Chains: multiple locations owned by a parent company Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 60 Financial Commitment Equals Ownership (cont’d) E.g., see Box 11.1 (on Burger King revoking a franchise’s licence for “reckless disregard for the physical and mental well-being” of patrons, staff, and the general public) Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 61 Hospitality for Sale Potential buyer should consider external factors prior to making an offer Good counsel is important: good accountant and lawyer to review assets and other details Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 62 Financial Management Source of financing: Private equity (e.g., if someone commits $200,000 of personal savings to start a small shop) Public equity (e.g., shares for purchase of A&W) Debt financing (e.g., short- and long-term contracts, notes payable, bonds) Internally generated funds (IGF) Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 63 Absolute Liability Ensure the protection and security of a guest’s personal effects and property: Due care and diligence begins when a guest begins communication with a representative such as a porter or front desk agent E.g., exceptions might be a guest leaving a ground floor patio door unlocked, or an act of God (like a hurricane) Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 64 Full Disclosure of Guest Property Guest should disclose the value of personal property Innkeeper can then properly safeguard property E.g., safes in rooms, on-site hotel vault, or a more appropriate institution, like a bank Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 65 Property Valuation Fair market estimate Three approaches to valuation: Income capitalization approach Sales comparison approach Cost approach Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Guide to Hospitality and Tourism Law in Canada 66 Licences, Regulations, and Codes Most relevant federal regulations: Competition Act, Food and Drugs Act, Criminal Code Licensing at the municipal level: alcohol and food Codes communicate minimum standards During COVID-19 pandemic, health and safety codes assumed much greater significance Copyright © 2021 Emond Montgomery Publications. All rights reserved.