TIANS has summarized the Tourism Related Supports from today’s Federal Economic Statement Update (Highlights Summarized Below the Links). Watch our TourismStrong.ca digital hub and social channels for additional details as they are released.
To read the Full Report: https://www.budget.gc.ca/…/2…/report-rapport/toc-tdm-en.html
Tourism Specific Section: https://www.budget.gc.ca/…/them…/tourism-hospitality-en.html
New – Tax Policy to Create Fair Playing Field for Short Term Rentals
Beginning July 1, 2021, all short-term rental platforms, including Airbnb, will be required to collect and remit GST/HST through either the property owner, or the digital accommodation platform, on short-term accommodation that is supplied in Canada.
New – Support through HASCAP
A new program called the Highly Affected Sectors Credit Availability Program (HASCAP) – was announced for tourism and hospitality, hotels, arts and entertainment.
– 100 per cent government-guaranteed financing for heavily impacted businesses, and provide low-interest loans of up to- $1 million over extended terms, up to ten years.
– Rates will be lower than those offered in Business Credit Availability Program (BCAP) and beneath typical market rates for hard hit sectors.
Regional Relief and Recovery Fund
The Regional Relief and Recovery Fund (RRRF), operated through Regional Development Agencies (ACOA) will have an additional $500 million targeted for the tourism sector. This will bring total funding to over $2.0 billion in this fund. Details are forthcoming.
Live Events and Arts Sectors
– $181.5 million to the Department of Canadian Heritage and the Canada Council for the Arts to support the planning and presentation of COVID-19-safe events and the arts — including both live and digital.
– Commitment to work with industry to prevent the closure of unique and irreplaceable flagship events and festivals across Canada.
CEWS – Increase the maximum wage subsidy rate to 75 per cent for the period beginning December 20, 2020 and to extend this rate until March 13, 2021.
Canada Emergency Rent Subsidy – Extension of the current subsidy rates of the Canada Emergency Rent Subsidy for an additional three periods.
– Base subsidy rate of up to 65 per cent will be available on – eligible expenses until March 13, 2021.
– With the 25 per cent Lockdown Support also being extended, businesses may be eligible for a subsidy of up to 90 per cent of their eligible expenses.
CEBA program will be expanded, allowing qualifying businesses to access an additional interest-free $20,000 loan, in situations where there is need.
– Half of this additional amount, up to $10,000, would be forgivable if the loan is repaid by December 31, 2022.
– Deadline to apply for a CEBA loan has been extended to March 31, 2021.
Airports and Airlines
Support for regional air transportation, including regional air carriers, up to $206 million over two years, to the Regional Development Agencies for a new Regional Air Transportation Initiative.
• $186 million over two years, for the Airports Capital Assistance Program (ACAP). Small federally-owned airports, which are not currently eligible for ACAP, would also be eligible to access the program for 2021-22 and 2022-23.
• $500 million over six years to establish a new transfer payment program for large airports to invest in safety, security and transit infrastructure.
• Extension of $229 million in additional rent relief to the 21 airport authorities that pay rent to the federal government. This support would consist of repayable and non-repayable rent relief, with non-repayable support costing $29 million over 4 years, starting 2020-21. Rent relief would be provided as follows:
-Waiving rent payments for small airports (i.e., those with passenger volumes of less than one million passengers in 2019) for 2021, 2022 and 2023.
-Waiving rent payments for medium airports (i.e., those with passenger volumes between one million and ten million in 2019) for 2021.
-Deferring rent payments for the largest airports for 2021, with repayment to occur over ten years, starting in 2024.
• $65 million in other additional financial support to airport authorities in 2021-22.