The Association of Canadian Travel Agencies (ACTA) has launched a new survey to collect information on travel agencies and individual agents or ICs' current debt levels and ability to repay government pandemic loans.
The survey focuses on loans received through the Canada Emergency Business Account (CEBA), Regional Relief and Recovery Fund (RRRF), and Highly Affected Sectors Credit Availability Program (HASCAP).
During the pandemic, numerous travel and tourism businesses accessed these federal loan programs. However, the ACTA said tight repayment terms associated with the loans are now hindering the recovery of the travel industry across Canada.
As Open Jaw reported, nearly half of businesses in the Canadian travel/ tourism sector recently admitted they are likely to shut down unless the government steps in to adjust their loan conditions.
Wendy Paradis, ACTA President, said, “We are also seeking information on preferred solutions for repayment, including increased loan forgiveness, extended repayment deadlines, and modification of loan terms."
These loans were provided by Canadian lending institutions during the pandemic and are fully guaranteed by the Government of Canada. Repayment dates for HASCAP loans vary depending on the terms agreed upon by individual travel businesses and their lending institutions.
“Our members and the travel industry as a whole continue to experience a very slow pace of financial recovery due to pandemic debt incurred. Escalating operational costs and unpredictable inflation are also a significant additional burden and making it impossible to repay federal loans by the current deadline,” said Paradis.
“We believe that with the first two financial quarters of 2023 now behind them, travel agencies, host agencies, and Independent Travel Advisors have timely data and perspective to share with respect to their debt levels, confidence in their ability to repay the federal loans, and preferred public policy solutions to assist their recovery."
The survey must be completed by 28JUL at 3 p.m. EST. All responses will be aggregated by ACTA, with no individual travel businesses being referenced.
Travel agencies, host agencies, and independent travel agents can access the survey by clicking here.
