Question Period Note: GOVERNMENT SUPPORT FOR TOURISM RECOVERY

What is the Government of Canada doing to support the tourism sector’s recovery?

• Since the onset of the pandemic, to help the sector weather the challenges of the past two years, the Government of Canada has provided an estimated $23 billion in emergency support for tourism businesses.

• To further encourage the tourism sector’s recovery, Budget 2022 proposed $20 million in new funding to support Indigenous tourism and help the Indigenous tourism industry position itself for long-term, sustainable growth.

• The tourism sector is turning the corner. According to Statistics Canada, tourist arrivals in June 2022 are up 1920% compared to June 2021..

• Budget 2021 provided $1 billion in targeted relief measures for the tourism sector, including $500 million for the Tourism Relief Fund, $400 million to support Canada’s major festivals and local events, and $100 million for Destination Canada marketing campaigns to promote Canadian travel destinations.

• The Government of Canada further extended support for tourism businesses until May 2022, through programs such as the Tourism and Hospitality Recovery Program and Hardest Hit Businesses Program.

• Budget 2022 committed to the development of a new, Federal Tourism Growth Strategy to plot a course for growth, investment, and stability.

• The tourism sector has been severely affected by COVID-19. In 2021, revenues declined by 44.5 percent compared to 2019, from $105.1 billion to $58.3 billion. As well, jobs directly attributable to tourism decreased by 28.4 percent from 696,400 in 2019 to 498,500 in 2021. As a result, the Government of Canada introduced a number of measures to support tourism businesses.

• Budget 2021 provided $1 billion in targeted relief measures for the tourism sector, including $500 million for the Tourism Relief Fund to support tourism businesses, $400 million to support Canada’s major festivals and local events, and $100 million for Destination Canada marketing campaigns to promote Canadian travel destinations.

• Bill C-2, which was passed in December 2021, further extended support for tourism businesses until May 2022 through programs such as the Tourism and Hospitality Recovery Program; the Hardest Hit Businesses Program; the Local Lockdown Program; and, the Canada Recovery Hiring Program.

• In addition to these measures, other relief programs include the Canada Emergency Business Account (CEBA), which provided up to $40,000 to small businesses and not-for-profits. The repayment deadline to qualify for partial forgiveness for CEBA has recently been extended from December 31, 2022 to December 31, 2023, for all eligible borrowers in good standing. Additionally, the repayment on or before the new deadline of December 31, 2023, will result in loan forgiveness of up to a third of the value of the loans.