Canada is a country known for welcoming those in need, but when the hotel bill for housing asylum seekers hits $1.1 billion, many are now asking: Is this still a solution, or just another problem?

Since 2017, as the number of asylum seekers entering the country has surged, the government has turned to hotels as a stopgap measure to shelter claimants. What started as an emergency response has turned into a costly, complex national challenge. In a time of rising rent, packed shelters, and growing public frustration, the hotel program is under fire — and the country is searching for long-term answers.

The Rise in Asylum Seekers Claims

Canada saw asylum claims jump from 50,365 in 2017 to over 173,000 in 2024. The sudden increase overwhelmed shelter systems in provinces like Ontario and Quebec. To respond, Immigration, Refugees and Citizenship Canada (IRCC) began booking hotel rooms nationwide — from downtown Toronto to remote areas of Atlantic Canada. It was meant to be temporary.

But fast forward to 2025, and IRCC still funds accommodation and meals for about 500 asylum seekers in five hotels in Quebec and Ontario. At its peak in 2023, the government was using 46 hotels with an average cost of $205 per night per person. The price has since dropped to $132 per day, but the damage to the budget and public opinion is done.

The Financial Breakdown: Who Pays and Where It’s Going

The hotel costs are only part of the picture. Through the Interim Housing Assistance Program (IHAP), Ottawa has distributed $1.5 billion to provinces and municipalities since 2019 to help support refugee housing.

Here’s how the money breaks down:

Even with this funding, major cities have struggled. In Toronto, asylum seekers slept on the streets in 2023 due to full shelters and limited hotel availability.

Growing Frustration and Political Pushback

Critics across the political spectrum are calling for change.

NDP MP Jenny Kwan called the hotel program “illogical” and urged a pivot to more sustainable housing options.
Conservative MP Michelle Rempel Garner warned the cost is creating a sense of unfairness among Canadians already struggling with a housing shortage.

Public sentiment is shifting too. Many Canadians — especially in urban areas — feel sidelined as they watch hotels house newcomers while they face rent hikes, long waitlists, and limited affordable units.

Hotel Housing vs. Real Housing: Is There a Better Way?

Even IRCC admits the hotel solution isn’t working long-term. They’ve issued “notices to vacate” to move people out of hotels, resulting in 13,000 claimants transitioning to other forms of housing between January 2024 and March 2025.

To reduce the burden, IRCC is also working to:

• Relocate asylum seekers to less stressed provinces
• Incentivize regional housing solutions through IHAP
• Encourage faster transitions to independent living

But with contracts in place through September 2025, the problem isn’t going away anytime soon.

The Road Ahead: Fixing a System at Its Breaking Point

The $1.1-billion hotel bill has become a symbol of deeper issues within Canada’s asylum system. Housing shortages. Delayed immigration processing. Uneven provincial support. The solution will need to be broad and bold.

Here’s what experts suggest:

• Build more affordable and transitional housing
• Streamline asylum processing to speed up integration
• Share the burden across provinces, not just major cities
• Engage the public with clear, honest communication

Canada’s Hotel Housing for Asylum Seekers Needs a Reset

The reality is clear — Canada’s hotel housing program for asylum seekers has outgrown its purpose. With over a billion dollars spent and frustration rising, the need for real, affordable, long-term housing options is urgent.

By shifting focus to sustainable solutions and spreading the responsibility more evenly, Canada can protect both its humanitarian values and its public resources. If the government doesn’t act fast, the $1.1-billion hotel bill may just be the beginning.

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