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New Support for Tourism and Hospitality

Providing new supports for Canada’s hardest hit sectors.

Tourism and hospitality

Approximately 750,000 workers depend on tourism and the sector creates 2 per cent of Canada’s gross domestic product (GDP). Small and medium sized firms dominate the tourism sector and it employs a higher proportion of youth, women and Indigenous Peoples compared to their share of the workforce.

Pandemic restrictions have taken a toll on Canada’s tourism industry — on jobs, businesses and communities — and it is expected that the uncertainty will persist into 2021. To date, approximately $9.7 billion is estimated to have flowed to businesses in these sectors through the Canada Emergency Wage Subsidy, Canada Emergency Business Account and the Canada Emergency Commercial Rent Assistance program.

New Support for Highly Affected Sectors

As outlined in the Speech from the Throne, some businesses, particularly those in highly-affected sectors like tourism and hospitality, have struggled to access sufficient financing. The government proposes to work with financial institutions in the near term to offer loans on more generous terms to the hardest hit businesses, to help ensure they remain viable and in place to drive future economic growth.

Proposed Investment

Regional Relief and Recovery Fund

The Regional Relief and Recovery Fund (RRRF), operated through Regional Development Agencies, has been a key support for businesses in the tourism sector. The additional $500 million proposed for the RRRF through the Fall Economic Statement would bring total funding to over $2.0 billion in this fund. To date, the RRRF has provided $202 million in support to 2,830 tourism-related businesses.

Proposed Investment

Supporting Workers in the Live Events and Arts Sectors

Cultural and recreation industries, which employ hundreds of thousands of Canadians, have been particularly hard hit by the pandemic, being among the first to shut down and likely among the last to return to regular activities.

Proposed Investments

The government understands that certain major live events and festivals will require unique support. The government will work with industry to prevent the closure of unique and irreplaceable flagship events and festivals across Canada, and to ensure the survival of key, globally-recognized assets in this sector.

To address the impact of COVID-19 on film and television productions across the country, the government announced a $50 million Short-Term Compensation Fund in September 2020. This initiative is compensating for the lack of insurance coverage for COVID-19–related filming interruptions and production shutdowns.

Continuing Support for Businesses

To see people through this crisis, the government has introduced a broad set of federal government measures for businesses of all sizes across all sectors. Programs like the Canada Emergency Wage Subsidy have helped protect over 3.9 million jobs, while the Canada Emergency Business Account has helped over 790,000 small businesses and not-for-profits weather this storm. The new Canada Emergency Rent Subsidy will help affected businesses pay their rent and mortgage interest, and Lockdown Support will make sure that eligible businesses that have to significantly restrict their activities as a result of a public health order get extra support to cover their eligible expenses.

Proposed Investments

More Information

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