Canada’s $1.1B Hotel Bill for Asylum Seekers Sparks Fury

Canada has spent over $1.1 billion since 2017 on hotel stays for asylum seekers. This spending, paired with another $1.5 billion in support to provinces and cities, has led to growing public concern. As more asylum seekers arrive, many Canadians are now questioning whether this system can continue.

Asylum Claims Rise Sharply

In 2017, Canada received around 50,000 asylum claims. By 2024, that number jumped to 173,000. Most people arrived in Ontario and Quebec. Cities like Toronto and Montreal quickly ran out of space in their shelters.

To help, the federal government began renting hotel rooms. It started as a quick fix, but the system grew bigger over time. At one point, officials were booking 46 hotels across Canada.

Hotels Were Meant for Short-Term Use

Officials say hotels were only meant to be a temporary solution. But the number of arrivals kept growing. In March 2025, the government still managed around 3,500 hotel beds for emergency use. Even though fewer hotels are now in use, the cost remains high.

One official said, “Hotels are not a sustainable or cost-effective solution.” The plan now is to move people into regular housing faster.

Huge Costs Lead to Public Anger

Beyond the hotel bill, the federal government also runs a housing support program. It has given $1.5 billion to local governments since 2019. Toronto received the most—about $670 million. Quebec followed with $542 million. Peel Region got nearly $98 million, and Ottawa spent $55 million in 2024 alone.

Even with these payments, many believe the system isn’t working well. Critics say renting hotel rooms for newcomers costs too much and doesn't solve long-term housing problems.

One opposition leader said, “This system doesn’t make sense. We need more affordable housing instead of expensive hotel stays.”

Housing Crisis Adds to Tension

Many Canadians are already struggling to find housing. Rents are rising, and wait times for social housing are long. Seeing newcomers in hotels while locals face housing problems has upset many residents.

In response, the government has asked asylum seekers to leave hotels if they can find other housing. Around 13,000 people have moved out since early 2024. Some are now being relocated to less crowded provinces with extra funding support.

Finding a Better Way Forward

Canada’s current system is under pressure. Experts say several things could help:

• Build more affordable housing.
  
• Speed up the asylum process.
  
• Share newcomers more evenly across provinces.
  
• Talk openly with the public about the costs and reasons for these programs.
  

An immigration official said, “We help newcomers find housing, jobs, and education. But our goal is to help them live independently as soon as possible.”

Still, hotel contracts remain active until September 2025, and the housing shortage isn’t going away soon. Finding a long-term solution is more urgent than ever.