TIANS is very pleased our collective efforts with the Hardest Hit Coalition with partners from across the country has resulted in targeted support for the sector announced today by the federal government.
Operators have been anxiously awaiting this news with the imminent end of CEWS, CERS and other assistance programs. TIANS has been calling for targeted and specific supports of this nature and this signals government’s recognition of the importance of the tourism sector to Canada’s economy moving forward.
Announcement from Federal Government – October 21, 2021:
Today, the government is proposing to use this authority to provide tourism, hospitality and other hard-hit organizations with support until November 20, 2021 under two new programs:
- The Tourism and Hospitality Recovery Program.
- The Hardest-Hit Business Recovery Program
The government is also proposing to introduce legislation as soon as possible to extend these programs past November 20, 2021, until May 7, 2022, with authority for further amendments through regulations until July 2, 2022.
Tourism and Hospitality Recovery Program
Support would be targeted to organizations in selected sectors of the tourism and hospitality industry that have been deeply affected since the outset of the pandemic and that continue to struggle.
Examples of eligible organizations in the tourism and hospitality industry include hotels, restaurants, bars, festivals, travel agencies, tour operators, convention centres, convention and trade show organizers, and others.
Additional details on the definition of qualifying businesses within this category will be forthcoming. Eligible organizations would be required to meet the following two conditions to qualify for this program:
- An average monthly revenue reduction of at least 40 percent over the first 13 qualifying periods for the Canada Emergency Wage Subsidy (12-month revenue decline); and
- A current-month revenue loss of at least 40 percent.
The 12-month revenue decline would be calculated as the average of all revenue decline percentages for eligible organizations from March 2020 to February 2021 (claim periods 1-13, excluding claim period 10 or 11). Any periods in which an entity was not carrying on its ordinary operations for reasons other than a public health restriction (for example, because it is a seasonal business) would be excluded from this calculation. The existing rules would continue to apply for the purposes of calculating the current-month revenue decline.
Hardest-Hit Business Recovery Program
Hard-hit organizations that do not qualify for the Tourism and Hospitality Recovery Program and that have been deeply affected since the outset of the pandemic would qualify for rent and wage support under the Hardest-Hit Business Recovery Program, provided they meet the following two eligibility requirements:
- An average monthly revenue reduction of at least 50 percent over the first 13 qualifying periods for the Canada Emergency Wage Subsidy (12-month revenue decline); and
- A current-month revenue loss of at least 50 percent.
The calculation of the 12-month revenue decline would follow the same rules as under the Tourism and Hospitality Recovery Program, as detailed above. The existing rules would continue to apply for the purposes of calculating the current-month revenue decline.
View full Support details at links below:
Government of Canada Announcement