Due to the emergence of the Omicron variant and with some countries shutting down their borders, ACTA highlights that urgent support for the travel industry is needed by quickly passing the recently proposed Bill C-2. Otherwise, “thousands” of travel and tourism jobs will be under threat.
“ACTA is closely analyzing the situation and is deeply concerned about the impact on travel agencies and independent travel agents, who are currently without financial support,” said Wendy Paradis.
Last week, Deputy Prime Minister Chrystia Freeland tabled Bill C-2, an Act to provide further support in response to COVID-19 in the House of Commons. If passed, the bill would provide up to 75 per cent wage and rent subsidies to travel agencies who suffered a revenue decline of 40 per cent or more.
However, there are some conditions, as ACTA notes, which appear to leave out independent travel agents from the program’s benefits.
According to ACTA, the group is calling on politicians and key government officials to amend the bill to include independent travel agents, or to introduce new financial support for these sole proprietors.
Details on the Tourism and Hospitality Recovery Program
As currently proposed, the Tourism and Hospitality Recovery Program would provide backdated wage and rent support from 24OCT 2021 to 07MAY2022. Wage and rent supports would then drop by half starting 13MAR 2022.
For example, a business eligible for 75 per cent subsidy would receive that amount between 24OCT 2021 and 12MAY 2022, and then would receive up to 37.5 per cent subsidy between 13MAR and 07MAY 2022.
To be eligible, businesses must have had a 40 per cent or greater revenue decline for each month between 15MAR 2020 and 13MAR 2021. Further, eligibility is determined monthly starting 24OCT 2021 where a minimum revenue drop of 40 per cent or greater is required.
The program works similarly to the previous wage and rent subsidies and will be administered by the CRA.
Further, the Canada Worker Lockdown Benefit was proposed, which provides financial support to workers impacted by a lockdown issued by any level of government, including federal, provincial, and municipal. According to ACTA, current indications are that border restrictions and advisories do not constitute a lockdown under this program.
Calls to Action
ACTA is meeting with politicians and government officials urging them to pass Bill C-2 urgently with support for independent travel agents.
The association is also calling on advisors to do the same, saying: “It is essential that travel agencies and independent travel agents write to their Members of Parliament to share their stories and need for immediate financial support.”
