by Leanne Czerwinski, posted on 3:27 PM, May 20, 2020
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May 19 & 20, 2020
Dear Tourism Stakeholders,
The TIAC Team continues to monitor and provide daily updates on the ongoing COVID-19 crisis, including the steps government is taking to address the situation. We are working hard to make sure the industry’s voice is heard by government, and that you have the information you need to keep your business going in these uncertain times.
Please find the latest updates on official announcements and a recap of TIAC’s advocacy work on behalf of Canada’s Tourism Sector:
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TIAC’s Advocacy Update
- Today, TIAC’s Vice President Stakeholder Relations and Business Development participated in a call hosted by the Canadian Chamber of Commerce, where he delivered remarks on the newly announced RRRF program.
- Yesterday, the Prime Minister announced changes to the Canada Emergency Business Account (CEBA) which gives small businesses interest-free loans of up to $40,000, of which 25% (up to $10,000) will be forgiven if the full sum is repaid by December 31, 2022
- This announcement confirms that sole owner-operators, businesses relying on contracts, and those that are family owned and pay employees by dividends now qualify for the loan program
- TIAC hopes these changes will help many tourism businesses who have shared with us their struggles qualifying for CEBA and other programs due to these issues. We encourage businesses who fall into these categories to talk to their financial institutions to access funding. And as always, we urge stakeholders who are encountering difficulty accessing the fund to share that information with us as soon as possible.
- Yesterday, TIAC’s President and CEO participated on a bi-weekly call with the Associate Deputy Minister of ISED where TIAC continued to report on early indications that many businesses may not qualify for the new RDA funds announced late last week, including not-for-profits and Destination Marketing Organizations. TIAC reiterated these concerns again today with Minister Joly’s office and will continue to work with government to fill gaps within this program.
- Today, the Canada Revenue Agency (CRA) hosted an interactive question and answer session for small and medium businesses on the Canada Emergency Wage Subsidy (CEWS). The session provided responses to general questions about the CEWS as well as resources needed to apply.
- Our partners at Tourism HR Canada have launched a new Recovery Toolkit initiative for the Canadian tourism sector.
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Government Announcements
- Yesterday, the Prime Minister announced additional measures that directly impact Canada’s tourism industry. The first, was that closure of the Canada/USA border will be extended by another 30 days.
- The current agreement was to expire on May 21, and the extension means the border will be closed until June 21, 2020.
- Under the closure, no leisure or tourism travel is permitted between the two countries. There has been no indication whether the border will remain closed beyond the June 21, 2020 extension.
- As mentioned above, the Prime Minister also announced the newly expanded eligibility for the Canada Emergency Business Account (CEBA) that provides interest-free loans of up to $40,000, of which 25% (up to $10,000) will be forgiven if the full sum is repaid by December 31, 2022.
- The expanded eligibility criteria will now include sole owner-operators, businesses relying on contracts, and those that are family owned and pay employees by dividends.
- Today, Minister of Finance Bill Morneau and Minister of Innovation, Science and Industry Navdeep Bains announced that applications for the Large Employer Emergency Financing Facility (LEEFF) are now open. LEEFF is a program for Canada’s larger employers that need access to bridge financing beyond what is available via the Business Credit Availability Program (BCAP).
- To access funding through LEEFF, employers must have $300 million or more in annual revenues and must be seeking a loan over $60 million. The Canada Development Investment Corporation (CDEV) has created a new subsidiary, the Canada Enterprise Emergency Funding Corporation (CEEFC), to administer LEEFF in coordination with Innovation, Science and Economic Development Canada (ISED) and Finance Canada.
- The Prime Minister also announced that the Canada Emergency Commercial Rent Assistance (CECRA) program will be open for applications starting May 25 via the Canada Mortgage and Housing Corporation’s website. CECRA will provide forgivable loans to landlords that covers 50% of their tenants rent, with tenants covering 25% and landlords absorbing 25%.
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In Case You Missed It …
- This week’s State of the Industry report written by our partners at Twenty31 is now available on the TIAC website
- This weekly project is made possible through Canadian Experience Fund funding
- TIAC is also releasing a summary of the results from our DMO survey on the impact of COVID-19 on our local and regional marketing organizations
- TIAC thanks the over 175 participants from across the country who participated in this survey. These surveys are important for us to identify the gaps in support measures and better advocate to government on your behalf.
- Tourism SMEs can now apply for assistance funding through their regional economic development agencies through the Regional Relief and Recovery Fund (RRRF) program.
- Details can be found here
- As this is a new program, we urge members to contact TIAC and let us know if you are encountering difficulties accessing this new program. As reported earlier, we are already in contact with government officials reporting on possible gaps. Your feedback and information is very important to help us advocate for changes.
Resources for Businesses
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Looking Ahead – COVID-19 Recovery
Several provinces have begun announcing plans for reopening economies. Timelines and actions vary, but can provide businesses and workers with information on what to expect in the upcoming weeks and months. TIAC is following up on measures announced by British Columbia to limit gatherings of more than 50 people and seeking a coordinated approach between provinces in the recovery phase. We have reached out to our provincial counterparts to work together in an effort to create an orderly recovery strategy that will address health concerns and support tourism businesses. TIAC will continue to add links to provincial recovery plans as they become available:
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TIAC Members: Making a difference
Thank you to the many TIAC Members who are helping during this difficult time. From those offering support like temporary housing for essential service providers, to others who brought home stranded Canadians from around the world. You are making a difference.
Today, we are featuring Sundog Retreat in Whitehorse, Yukon. Sundog Retreat has pivoted their business towards promoting “Staycations” for local community members. Staycations at their retreat are supporting their new greenhouse initiative, which– in collaboration with the Yukon Grain Farm, the Whitehorse Food Bank, Y2C2 youth, the Yukon College PIVOT program and some dedicated volunteers -will produce food for the White Horse Food Bank. They also hope to hire people for the summer to assist in greenhouse operations.
You can learn more, and donate to this initiative here.
Thanks to TIA Yukon for passing along this story!
Do you have a story to share about how tourism businesses are supporting communities during these challenging times? We want to hear from you whether you’re a TIAC member or not. We need to celebrate our industry and recognize your generosity during these trying times. Please share your stories with us at communications@tiac-aitc.ca.
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