Yesterday, the opening up of applications for Ottawa’s new Tourism Relief Fund brought relief closer to Canadian tourism operators, but it also served to highlight the absence of support for travel agencies and independent advisors, who are not included in the Fund.
The TRF, which is part of a broader $1 billion package proposed in the 2021 federal budget, will provide $500 million to the domestic tourism sector over the next two years.
$485 million will be doled out by regional development authorities directly to the businesses themselves in order to aid in the creation of new tourism experiences or to enhance existing ones. A list of regional development authorities is here.
The Government of Canada will also be investing a minimum of $50 million into Indigenous tourism projects.
Funds will either be repayable, for contributions up to $500,000, or non-repayable for contributions up to $100,000. Indigenous and not-for-profit organizations will be eligible for non-repayable funds.
In addition, $15 million via Innovation, Science and Economic Development Canada (ISED) will support destination development, seasonal and local attractions, human resources and skills development.
“Our government has been there for the tourism sector since the beginning of the COVID-19 crisis and today’s announcement is about adding another tool to the suite of COVID supports that will help it recover and prepare for future growth and create jobs,” said Mélanie Joly, Minister of Economic Development and Official Languages in a statement. “This is an important step in our recovery efforts to attract visitors from all over the world so they can discover our country’s extraordinary wild natural beauty, delicious food and rich cultural experiences and incredibly warm hospitality once it is safe to do so.”
The fund’s government page does note that it is meant to “help the sector reposition itself to welcome international visitors, by providing the best Canadian tourism experiences we have to offer the world.”
Given that Canada’s borders remain closed with no date for reopening to international visitors, this Fund targets the sector’s survival and regrowth over the long term.
“The tourism industry continues to face significant hardship due to the onset of the COVID-19 pandemic. During today's press conference, Minister Joly acknowledged the unique set of factors our suite of sectors has endured, and repeatedly highlighted the fact that the tourism industry was first and hardest hit,” said Beth Potter, president & CEO of the Tourism Industry Association of Canada (TIAC.)
“We appreciate the announcement of additional funds to the industry through the TRF, with a focused lens to ensure support to Indigenous operators. While it is not going to solve all problems, this funding could make the difference between a business being able to stay in operation and employ staff throughout the long road to recovery.”
