Deputy Prime Minister and Minister of Finance Chrystia Freeland announced a new wage and rent subsidy for tourism businesses, the Tourism and Hospitality Recovery Program, which includes travel agencies.
"This new program will support the survival of 1000s of Canadian travel agencies, who are among the hardest hit businesses in the pandemic. We are pleased that the Deputy Prime Minister directly referenced travel agencies in her announcement. This speaks to the tremendous and aggressive advocacy efforts of ACTA, travel agents, and our partners," said Wendy Paradis, President of ACTA. "Further, we are working to understand how Independent Travel Agents fit into this new program. The Deputy Prime Minister said employers and businesses are included, so we are strongly urging the federal government to include these small businesses."
This program will replace the current wage and rent subsidies, expiring this Saturday, October 23. The Tourism and Hospitality Recovery Program starts October 24 and ends May 7, 2022.
The Deputy Prime Minister further announced that the Canada Recovery Benefit also ends this Saturday, replaced by the Canada Worker Lockdown Benefit on October 24. This program provides $300 a week in income support to eligible workers who are unable to work due to government imposed public health lockdowns, until May 7, 2022.
Travel advisories effectively 'lockdowns' for travel agents
It is unclear if Independent Travel Agents qualify for the Canada Worker Lockdown Benefit, and ACTA is seeking clarification and asserts that government consider travel advisories and border restrictions as a qualifying lockdown for travel agent entrepreneurs.
New wage and rent subsidy program
The Tourism and Hospitality Recovery Program will provide up to 75% wage and rent subsidies to travel agencies with a revenue loss of over 40% between October 24, 2021, and March 12, 2022.
For businesses with a current month revenue decline of 40 to 74%, the benefit will match their revenue decline. For example, if the current month revenue decline is 60%, the subsidy rate will be 60%. The benefit is capped at 75%, so travel agencies with a current month revenue decline of less than 75% will receive a 75% subsidy. From March 13 to May 7, 2022, the total subsidy will be reduced by half, following the same eligibility criteria.
"The Tourism and Hospitality Recovery Program provides strong support to eligible businesses, and in addition to modernizing travel advisories and border restrictions, is a critical part of our sector's recovery," said Paradis.
Eligible businesses must have an average monthly revenue reduction of at least 40% over the first 13 qualifying periods for the Canada Emergency Wage Subsidy, in addition to a current month revenue loss of at least 40%.
The government also proposes increasing the aggregate monthly cap for rent subsidies from $300,000 to $1 million, starting October 24, 2021. The new cap would be available to employers who meet the eligibility requirements for the rent subsidy under the Tourism and Hospitality Recovery Program.
It is also unclear at this time if Independent Travel Agents qualify under this program. ACTA is advocating with the government at the highest levels for their inclusion in the Tourism and Hospitality Recovery Program.
New individual support benefit
Effective October 23, the Canada Recovery Benefit will end, replaced by the Canada Worker Lockdown Benefit on October 24. This program will provide up to $300 a week in support for workers whose work interruption is a direct result of a government imposed public health lockdown.
"Government travel advisories and restrictions have devasted independent travel agents. With the ending of the CRB, it is critical they are included in the new Canada Worker Lockdown Benefit," says Paradis. "Their loss of business is a direct result of government imposed public health lockdowns, and ACTA will continue our advocacy with the Deputy Prime Minister and the Prime Ministers Office to ensure they understand the urgent need for continued support to Independent Travel Agents."
Details on this program are unavailable, and the government says: "further details on this proposed benefit will be released in the coming weeks."
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