Update on Government Programs for Tourism Industry
Federal Government Tables Bill C-2, Including The Tourism And Hospitality Recovery Program And Hardest-Hit Business Recovery Program
On November 24, 2021, the federal government tabled Bill C-2, (This bill would also extend the Canada Recovery Hiring Program, Canada Recovery Caregiving Benefit, and Canada Recovery Sickness Benefit until May 7, 2022 and establish the Canada Worker Lockdown Benefit),includes targeted support to tourism and hospitality businesses still facing significant pandemic-related challenges to recovery. As previously announced in October, if the bill is passed, financial support would be made available to tourism and hospitality businesses through the Tourism and Hospitality Recovery Program and the Hardest-Hit Business Recovery Program.
Both Tourism and Hospitality Recovery Program and Hardest-Hit Business Recovery Program will provide targeted aid to tourism and hospitality sectors through wage and rent subsidies. As announced in October:
The Tourism and Hospitality Recovery Program:
Offers a subsidy rate of up to 75%
Applies to organizations in a number of tourism and hospitality sectors, including (but not limited to): accommodations, food and beverage, travel agents, tour guides, museums, cinemas, charter bus services, amusement parks, ski hills, airports, industry associations. Full list of eligible businesses here.
Businesses must have experienced:
oan average monthly revenue reduction of at least 40% over the first 13 qualifying periods for the Canada Emergency Wage Subsidy (12-month revenue decline);
oAND a current-month revenue loss of at least 40% (the rules applicable under the previous wage and rent subsidy programs would continue to apply for the purposes of calculating the current-month revenue decline).
Hardest-Hit Business Recovery Program:
Subsidy rate of up to 50%
Applies to businesses in all sectors
Businesses must have experienced:
oan average monthly revenue reduction of at least 50% over the first 13 qualifying periods for the Canada Emergency Wage Subsidy (12-month revenue decline)
oAND a current-month revenue loss of at least 50%
As the tourism and hospitality sector shifts to recovery, collaboration has never been more important. The Tourism and Hospitality Emergency Recovery initiative, led by Ontario Tourism Education Corporation (OTEC) and funded by Canada’s Future Skills Centre to develop real solutions to rebuild our sector and attract new workers. (Free Training, Videos for workers and employers and those entering the industry).
Empowering tourism businesses to create new or enhance existing tourism experiences and products to attract more local and domestic visitors – and – helping the sector reposition itself to welcome international visitors by providing the best Canadian tourism experiences we have to offer the world.
Government is proposing to continue COVID-19 business support programs until May 2022 for organizations hit hardest since the start of the pandemic or most affected by public health restrictions.
Supporting business activities that support to a green economy, foster an inclusive recovery, preserve Canada’s competitiveness and future-proof SMEs, and strengthen capacity in sectors critical to Canada’s recovery and growth.
Providing financial support to workers by expanding the Second Career Program and proposing to extend the Ontario Jobs Training Tax Credit.Back to articles