July 23, 2025
RED FM News Desk
Ottawa, ON — The federal government has spent $1.1 billion to house asylum seekers in hotels across Canada since 2017, in addition to $1.5 billion in transfers to provinces and municipalities to help manage the rising number of refugee claimants.
The hotel accommodations began as a temporary emergency response in 2017 when shelter systems in key cities such as Toronto and Montreal became overwhelmed. Immigration, Refugees and Citizenship Canada (IRCC) has since block-booked rooms in multiple cities to help absorb the growing volume of asylum seekers arriving in the country.
Asylum claims in Canada have surged from 50,365 in 2017 to a record 173,000 in 2024, with the vast majority of arrivals landing in Ontario and Quebec. According to IRCC, the federal government is currently covering hotel and meal costs for approximately 500 asylum seekers spread across one hotel in Quebec and four in Ontario.
The average daily cost per claimant has decreased from $199 in January 2024 to $132, reflecting ongoing cost-control measures. However, the financial burden remains significant, and the federal government continues to maintain around 3,500 contingency beds in anticipation of future surges, according to a March 2024 internal briefing prepared for then-Immigration Minister Rachel Bendayan.
While the responsibility for housing and support of asylum claimants officially lies with provinces and municipalities, Ottawa stepped in during the 2017 shelter crisis to directly operate hotels and has continued to do so in emergency situations.
At the peak of operations in late 2023, IRCC was renting rooms in 46 hotels nationwide, from Vancouver to Atlantic Canada, at an average cost of $205 per night. That number has since dropped significantly. The federal department began issuing “notices to vacate” earlier this year to encourage asylum seekers to secure more permanent housing in local communities — a move that resulted in 13,000 individuals leaving hotels between January and March 2024.
The government has also committed another $1.1 billion over three years through the Interim Housing Assistance Program (IHAP) as part of its 2024 federal budget. The updated funding places a stronger focus on developing and supporting affordable housing solutions.
Since 2017, the City of Toronto has received $669.7 million from Ottawa to help manage the influx of refugee claimants, while Quebec has received $542.7 million. Other major disbursements include $105.7 million to Ottawa, $97.8 million to Peel Region, and $14.4 million to British Columbia.
Earlier this year, Canada’s largest shelter for asylum seekers opened in Peel Region, which encompasses Mississauga and Brampton. Located near Toronto Pearson International Airport, the reception centre was built using $22 million in IHAP funding and is capable of housing up to 680 claimants.
As Canada continues to face complex challenges related to housing, immigration, and affordability, government officials have indicated that hotel use will be gradually phased out in favour of more sustainable long-term housing solutions.
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