As major government COVID support programs come to an end on Saturday, the federal government has extended assistance to hard-hit sectors including travel agencies, but it's unclear whether independent agents will continue to receive income support.
As of October 23, programs including the Canada Recovery Benefit, the Canada Emergency Wage Subsidy and the Canada Emergency Rent Subsidy will come to an end.
Yesterday, Finance Minister Chrystia Freeland launched two new programs: the first is a wage and rent support program aimed at the tourism sector called the Tourism and Hospitality Recovery Program. The minister said this would apply to hotels, restaurants and travel agencies that remain negatively impacted by public health restrictions.
A second initiative targets "hardest-hit" businesses that can show they have faced "deep and enduring losses" due to COVID-19. It will provide wage and rent supports until May 7, 2022, with funding levels decreasing by half after March 13.
The new wage and rent subsidy program will be harder to access, as it will require businesses to demonstrate they have lost revenue over 12 months, rather than just the four-week period for which they are making a claim.
The Canada Recovery Benefit, which paid up to $500 per week to self-employed individuals who saw a decline in income of 50% or more due to the pandemic, is being replaced by a much leaner program, the Canada Worker Lockdown Benefit.
It will provide $300 a week in income support to eligible workers who are "unable to work due to government-imposed public health lockdowns," and extend until May 7, 2022. But it's not clear whether independent agents will qualify.
Despite the uncertainty, travel advisor organization ACTA called the announcements a win for the beleaguered industry.
"This new program will support the survival of 1000s of Canadian travel agencies, who are among the hardest-hit businesses in the pandemic," said Wendy Paradis, President of ACTA.
"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," Paradis added.
But grassroots advisor organization the Association of Canadian Independent Travel Advisors (ACITA) sees things differently.
It fears that many agents who work from home - an estimated 50% of Canada's approximately 24,000 travel advisors - will be cut off from the income support that has kept many going during the pandemic.
In a conversation with TravelPulse Canada, a group of ACITA members shared their concerns.
"We are falling through the cracks, contrary to the words of our Prime Minister," said Mike Sanderson, who runs Up Up and Away Travel.
Sanderson said he understands the reasoning behind the government decision to wind down the Canada Recovery Benefit. "We know people, especially part-time workers, are taking advantage of the CRB," he said.
But Sanderson and other ACITA members say government policies and travel advisories are still severely impacting the industry, and support remains necessary if independent agents are going to survive.
For its part, ACTA says it is "working to understand how independent travel agents fit into the new programs" and whether they would qualify for the Canada Worker Lockdown Benefit.
"ACTA is seeking clarification and asserts that government consider travel advisories and border restrictions as a qualifying lockdown for travel agent entrepreneurs," the group said in a statement.
Independent agents say business is beginning to take off, but the nature of how they are paid means they won't see the income for new bookings for weeks or months.
"We need gap or bridge financing until the world opens up," says Brenda Slater, an ACITA co-founder and operator of Beyond The Beach. "The problem is that we're not making any money right now. How do we keep our businesses going until that money comes in?"
Some good news came last night when the Canadian government quietly lifted the global Level 3 travel advisory that warned Canadians to avoid all non-essential travel. It's tough to sell vacations when the government is telling citizens to stay home.
But major selling obstacles remain. Canada has not changed its Level 4 advisory warning Canadians to avoid all cruise travel. And returning to Canada from an international trip can come with a steep price: the PCR test required for entry - required even for fully vaccinated travellers - can cost upwards of $200 per person.
ACITA members say with our high vaccination rates, Canada should shift to giving returning travellers a rapid antigen test on arrival. Results are quick, they say, and such an initiative would create Canadian jobs, avoid possibly fraudulent tests and protect Canadians from price gouging in destinations.
"As a Canadian you can't get on a place without being fully vaccinated," says Terry Declare, a TravelOnly and ACITA member. "Wouldn't (a rapid antigen test on arrival) make people feel more comfortable?"
Independent agents say they'll need all the help they can get to weather the storm until travel returns to somewhere near pre-pandemic levels. They're looking not just to the government, but also hoping tour operators and other travel suppliers will take steps to ensure their survival.
"It's not fair to us," says Jamie Badowski, an independent consultant at The Travel Agent Next Door. "We've been left out of the equation and we really need help."
Topics From This Article to Explore
