ACITA: Extension of Wage and Rent Programs Not Enough To Save Advisors

Ottawa is extending two key programs that have helped the travel industry. But ACITA says many independent travel advisors still risk losing their businesses.

Deputy Prime Minister and Minister of Finance Chrystia Freeland and Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion, on Friday announced the extension of crucial COVID-19 support measures for Canadians and Canadian businesses in recognition that uneven economic reopening across regions and sectors means workers and businesses continue to need support. These extensions include:

Extending the eligibility period for the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Rent Subsidy (CERS) and Lockdown Support until October 23, 2021, and increasing the rate of support employers and organizations can receive during the period between August 29 and September 25, 2021.

Extending the Canada Recovery Benefit (CRB), the Canada Recovery Caregiving Benefit (CRCB), and the Canada Recovery Sickness Benefit (CRSB) until October 23, 2021.

Increasing the maximum number of weeks available for the CRB, by an additional 4 weeks, to a total of 54 weeks, at a rate of $300 per week, and ensuring it is available to those who have exhausted their employment insurance (EI) benefits.

"As our recovery gets underway, workers and businesses in certain regions and sectors continue to need support," federal officials said in a release. "In the April federal budget, the government recognized that the economic and public health situation remained uncertain and made sure it had the flexibility to extend supports further into the fall as the public health situation warranted. By moving forward on these extensions, the government is ensuring that businesses - including those in hard-hit sectors like tourism, hospitality, arts, and entertainment - can continue to get the support they need so they can invest in their recovery and long-term prosperity."

"In addition, the government is proposing to offer businesses greater flexibility when calculating the revenue decline used to determine eligibility for the wage and rent subsidy programs and the new Canada Recovery Hiring Program. The government is also releasing draft legislation that provides further clarity on previously announced changes to the wage subsidy for furloughed employees."

The Association of Canadian Independent Travel Advisors says there are major issues with the announcement.

"While there is a small amount of relief that we have an additional month to collect this benefit, the fact remains that we were barely hanging on with the original amount of the CRB," the group told TravelPulse Canada. "Now, with the reduction of the CRB to $300/week Ipre tax) and still having to face both the Level 3 non essential and the Level 4 do not cruise travel advisories, in addition to many border restrictions still remaining for Canadians, many Independent Advisors are still at risk of closing their businesses."

"I'd like to point out that over the past several months we have shifted our focus with MP's, asking for sector specific aid in place of the CRB," said ACITA's Nancy Wilson. "We are seeing staffing crises in a number of industries where some Canadians are choosing to stay home and collect the CRB versus work. We are a sector that cannot survive without the aid, yet that very aid is causing significant challenges to many industries, such as restaurants and retail, among others.

"We have recommended sector specific aid since the beginning, yet it has fallen on deaf ears."

Wilson said ACITA"s Brenda Slater has suggested they take the existing model of the CRB, and rename it, where it will apply only to the hardest hit sectors. Her suggestion was to not reinvent the wheel, and the thought process is to protect only businesses who still need assistance, thereby not growing the debt unnecessarily as Canada works to recover our Economy.

ACITA member Judith Coates noted that it is disappointing that the federal government has ignored the group's pleas for sector specific funding. "By extending the CRB & CEWS for one month, it would seems to be a blatant attempt to win votes in the upcoming election," she said.

"We have continued our meetings with MP's, with a particular focus on government, and will continue to ensure they hear the message from us," Wilson said. "In a meeting this week with MP Adam van Koeverden, I used the fitting analogy of being in an Olympic race.

"'Imagine you are competing in your event, and you are really close. Y ou can see the finish line. Now imagine that, through no fault of your own, you got disqualified from that race. How disappointing it would be to know you were almost there, but then failed to complete it. That's how we feel right now. We are so close, and we need support to get us across the finish line. We are desperately hanging on, and don't even need to win a medal. We just want to stay in the race.'"

The Tourism Industry Association of Canada says the extensions are a positive step. But it says more needs to be done to help an industry that has lost most of the crucial summer season and is still suffering from travel restrictions and border closures.

"This is a very positive step and the government deserves credit for listening to our sector,"TIAC president and CEO Beth Potter said. "However, we know that this will not be enough to keep thousands of businesses from closing their doors permanently and losing important tourism infrastructure. The tourism and travel industries were the first hit in the pandemic and the hardest hit, and we will be the last to recover.

"Without business survival programming that targets our sector, many businesses will not survive."

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