On October 21st, 2021, the Federal Government announced new programs to support the Hospitality & Tourism industry as well as other hard-hit organizations during the COVID pandemic.

INTRODUCTION OF THE TOURISM AND HOSPITALITY RECOVERY PROGRAM (THRP)

Targeted organizations

Organizations in selected sectors of the hospitality & tourism industry such as but no limited to hotels, restaurants, bar, tour operators and trade show organizers. 

Eligibility  

• Average monthly revenue reduction of at least 40% over March 2020 to February 2021 
• Current month revenue reduction of at least 40% over comparable period 

Support  

• From October 24, 2021 to March 12, 2022 
  • Current month decline > 75% : subsidy rate of 75% 
  • Current month decline between 40% and 75% : subsidy rate equal to revenue decline 
• From March 13, 2022 to May 7, 2022 
  • Current month decline > 75% : subsidy rate of 37.5% 
  • Current month decline between 40% and 75% : subsidy rate equal to revenue decline / 2 

Eligible expenses

Eligible remuneration and eligible rent expenses as currently defined for the Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS). Monthly cap on eligible expenses under the CERS to be increased from $300M to $1,000M.

INTRODUCTION OF THE HARDEST-HIT BUSINESS RECOVERY PROGRAM (HHBRP)

Targeted organizations

Organizations that do not qualify under the THRP 

Eligibility 

• Average monthly revenue reduction of at least 50% over March 2020 to February 2021 
• Current month revenue reduction of at least 50% over comparable period 

Support

• From October 24, 2021 to March 12, 2022 
  • Current month decline > 75% : subsidy rate of 50% 
  • Current month decline between 50% and 75% : subsidy rate of 10% + (revenue decline – 50%) X 1.6 
• From March 13, 2022 to May 7, 2022 
  • Current month decline > 75% : subsidy rate of 25% 
  • Current month decline between 50% and 75% : subsidy rate of 5% + (revenue decline – 50%) X 0.8 

Eligible expenses

Eligible remuneration and eligible rent expenses as currently defied for the CEWS and CERS. Monthly cap on eligible expenses under the CERS to be increased from $300M to $1,000M.

EXTENSION OF THE CANADA RECOVERY HIRING PROGRAM

• Extension from November 20, 2021 to May 7, 2022 under the current rules 
• Subsidy rate for the period ending November 20, 2021 would be increased to 50% 

In the case of the THRP and HHBRP, the Federal Government will introduce legislation with the authority to further extend through July 2, 2022. 

More details are to be made available by the Canadian Government in the coming weeks.

The post November, 2021 – Tourism and Hospitality Recovery Program (THRP) first appeared on LCA CPA.