Businesses accessing the government’s pandemic wage and rent subsidy will see their support decline by half over the weekend, prompting calls within the tourism sector for Ottawa to step in.
The Tourism and Hospitality Recovery Program (THRP) and the Hardest-Hit Business Recovery Program’s (HHBRP) subsidy rate will decrease from 75 per cent to 37.5 per cent and 50 per cent to 25 per cent respectively, starting March 13.
The Coalition of the Hardest Hit Businesses (CHHB), which launched in 2020 and represents hundreds of businesses in tourism, travel, events, and arts and culture, is calling on the government to maintain and extend the current level of support offered through the THRP.
The program targets hotels, restaurants, bars, festivals, travel agencies, tour operators, and others who have seen a 12-month average revenue decline of 40 per cent and a current-month revenue loss of the same amount.
Organizations that don’t qualify for the THRP can apply to the HHBRP by showing a 12-month average revenue drop of 50 per cent and a current-month revenue loss of the same amount.
The CHHB is also asking for an end to border barriers and a national labour strategy to get the sector back on its feet.
“The COVID-19 crisis has created an unpredictable environment for travelers and hospitality businesses,” said Beth Potter, president and CEO of the Tourism Industry Association of Canada and co-chair of the coalition, in a statement.
“International arrivals are still down 87 per cent.”
“Omicron has set our businesses back with significant cancellations over the winter and spring, and we are quickly losing our booking window for the summer,” said Susie Grynol, president and CEO of the Hotel Association of Canada and co-chair of the CHHB.
“The government has helped the sector survive this far; it just needs a little more help.”
The revised wage and rent subsidy is still available for eligible businesses until May 7.
Also on March 13, the Local Lockdown Program and the Canada Worker Lockdown Benefit will be stripped back to their original parameters – applying only to those businesses, charities, non-profits and workers impacted by a public health lockdown.
In December, the government used regulatory powers provided in Bill C-2 to expand access to both supports amid criticism the eligibility guidelines were too severe given no regions at the time were under a lockdown.
As such, the Local Lockdown Program shifted to include employers subject to capacity-limiting restrictions of 50 per cent of more. Ottawa also lowered the current-month revenue decline threshold to 25 per cent. Applicants may receive wage and rent subsidies from 25 per cent up to a maximum of 75 per cent depending on revenue loss.
Likewise, the Canada Worker Lockdown Benefit changed to include workers in regions where the government had imposed capacity-limiting restrictions of 50 per cent or more. The benefit provides $300 per week in income support to those who’ve lost 50 per cent or more of their income as a result of a restriction or a lockdown.
Businesses and workers can still access both programs under their original classification until May 7.
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