Funding announced for tourism sector

Many operators left out of new program, says tourism association

More tourism supports are coming to Atlantic Canadian businesses, but there are still lots of gaps says the P.E.I. Tourism Association.

Deputy Prime Minister Chrystia Freeland, who is also the federal finance minister, was at Founder’s Food Hall in Charlottetown on July 22 to announce $48.5 million in funding from the Tourism Relief Fund to be administered by the Atlantic Canada Opportunities Agency (ACOA).

The fund will help businesses reposition themselves to deal with the current and post-COVID reality, said Freeland.

“This is direct support that will help tourism businesses and organizations adapt their operations, finish the fight against COVID and get through the other side.”

The fund focuses on product and destination development projects in Atlantic Canada, offering eligible businesses non-repayable contributions up to $100,000 for up to 50 per cent of eligible costs or fully repayable contributions up to $500,000 for up to 75 per cent of eligible costs.

Not-for-profit organizations are also eligible for non-repayable contributions not exceeding $500,000, with actual amounts based on minimum amounts required to carry out the project.

The total fund has a budget of $500 million over two years, with $50 million dedicated to Indigenous tourism initiatives and $15 million for national initiatives through Innovation, Science and Economic Development Canada.

Applications through ACOA are now open.

MISSING OUT

Corryn Clemence, CEO of the Tourism Association of P.E.I., said the organization is still trying to figure out the exact details of the program, but already it knows many will be left behind.

“These people are still suffering and need to get through the winter. I hate to look a gift horse in the mouth. It’s helpful to some, but there are still big gaps and areas of concern for us.”

Since the tourism relief fund only matches contributions made by businesses, there aren’t many P.E.I. operators able to take advantage, she said.

“It’s important that they do (reinvest) and that we have the ability to do that, but I think

Julie Ann Gauthier, co-owner of Joey's Deep Sea Fishing, fishes last summer off the Reel Upgrade, one of the boats the business used to own. CONTRIBUTED we really are still highlighting that we’re still struggling and that a lot of our operators don’t have the money to do that, to reinvest right now.”

Julie Ann Gauthier, coowner of Joey’s Deep Sea Fishing in North Rustico, is in no position to be thinking about upgrades.

“(They're) telling us to do different and better and bigger, and we’re drowning with what we’re trying to do right now.”

While she’s thankful the government is trying, she thinks it is missing the mark and has found navigating provincial and federal supports overwhelming.

“I get where the government is coming from trying to help us, but I think they forget that when we’re open — we’re operational right now — we’re all in. There’s not time for all this

FILE extra paperwork and processing and stuff like that.”

WAGE SUBSIDY

The saving grace of operators like Gauthier had been the Canada Emergency Wage Subsidy, which is being phased out ahead of its end in September after an extension from its original June end date. The replacement program, the Canada Recovery Hiring Program (CRHP), doesn’t offer the same level of support.

Freeland said the government was conscious in designing the CRHP to meet the one million jobs promised in the throne speech last September.

“The hiring program is there also to provide an incentive. I want businesses to hire back people.”

In the meantime, the 2021 budget did leave room to extend those programs, if necessary, she said.

“We said we’ll look at how the economy is doing, we’ll look at the health situation and we’re committed to doing whatever it takes to support Canadians and Canadian businesses and we’ll be true to that.”