ACTA is informing Canadian travel agencies that the Canada Revenue Agency (CRA) is now accepting applications for the Tourism and Hospitality Recovery Program (THRP) wage and rent subsidies.
"We were very pleased to see the government act so quickly to put this in place so that agencies can apply for wage and rent subsidies now," said Wendy Paradis, ACTA President.
It's good news for those who qualify, but the vast majority of independent travel advisors, who make up an estimated 40-50% of the segment, are left out.
ACTA says it will keep advocating for support for independents.
"We are continuing to meet with politicians and senior government officials in the Ministry of Finance, Ministry of Tourism, and other key MPs to strongly urge for immediate support to all independent travel agents," said Paradis.
The THRP gives up to 75% wage and rent subsidies to eligible travel, tourism, and hospitality businesses that have suffered 40%+ revenue losses.
Companies are considered tourism businesses if more than 50% of revenue comes from the following activities:
-Operating a travel agency or as a tour operator
-Acting as an agent in selling travel, tour, and accommodation services for:
-Tour operators
-Transportation companies
-Short-term lodging establishments
-Arranging, assembling and marketing tours
There are two minimum financial requirements to be eligible for the THRP:
- A company has a 12-month average revenue drop from March 2020 to February 2021 of at least 40%.
This is calculated against the same month in the year prior (e.g., September 2019 vs. September 2020). The total number is calculated based on the CEWS claim periods 1 - 13, excluding the revenue drop for either period 10 or 11. The government provides a tool to calculate this number.
- In the period for which a company is applying for the THRP, they must demonstrate a revenue drop of 40% or greater compared to the same period prior to the pandemic. If in one period of the program the revenue drop is less than 40%, the company does not qualify for the THRP in that period, but may qualify in other periods in which revenue was down more than 40%.
The only independent travel agents eligible for the wage subsidy component of the THRP are those who had a payroll account on March 15, 2020 and meet the revenue loss requirements previously described.
Independent agents qualify for the rent subsidy component of the THRP if they meet the revenue loss requirements previously described. However, most work from home offices which do not qualify as an eligible expense.
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