In October, the Government of Canada announced that it would be releasing new recovery benefit programs for businesses that have been hardest hit by the COVID-19 pandemic. One of these programs was the Tourism and Hospitality Recovery Program (THRP).
While the name specifies tourism and hospitality, the list of qualifying industries and businesses is actually much broader.
Eligible businesses (as well as non-profits and charities) include those in the tourism, hospitality, arts, entertainment and recreation sectors who make more than 50% of their revenue from qualifying tourism, hospitality, arts, entertainment and recreation activities, including but not limited to businesses;- operating or managing an airport
- operating or managing an amusement or theme park
- operating or managing amusement arcades
- operating or managing sites to accommodate campers and their equipment
- operating or managing a casino
- providing charter bus services (excludes buses on a fixed route and schedule or buses that are rented as a whole and not by seat)
- operating or managing facilities that are primarily engaged in exhibiting motion pictures
- operating a facility allowing passengers to board and leave a cruise ship
- organizing, promoting, hosting, supporting or participating in events that meet the artistic or cultural interests of patrons
- operating or managing a duty-free retail store at a land border crossing where the only exit route is to the United States
- operating or managing facilities providing short-term lodging
- operating or managing a fishing or hunt camp
- preserving and exhibiting objects, sites and natural wonders of historical, cultural or educational value
- operating or managing overnight recreational camps
- downhill and cross-country ski/snowboard areas
- operation of docking and storage facilities for pleasure-craft owners, with or without related activities
- operating fitness and recreational sports centres
- operating amateur sports clubs, teams or leagues
- operating archery or shooting
- operating ballroom dancing
- operating river rafting
- operating curling clubs
- operating mini golf and bowling
- operating restaurants, food trucks, cafeterias, catering services, coffee shops, food concessions, bars, pubs, nightclubs
- organizing, promoting or supporting scenic and sightseeing tours
- operating a travel agency or as a tour operator
- promoting a destination or region in Canada for the purpose of attracting tourism
- organizing, planning, promoting, hosting or supporting conventions, trade shows or festivals, weddings, parties, or similar events
- promoting the interests of the members of an industry organization or association, if the members are primarily engaged in activities described in this list
Golf related activities, country clubs, professional sports clubs, team or leagues, mobile home sites, supermarkets and convenience stores will not qualify.
For more specific details on these activities, you can visit Canada.ca.
In addition, the organization must have a current revenue loss of 40% or more AND an average reduction in monthly income of 40% or more between March 2020 and February 2021.
Businesses in any sector can also access THRP through the Local Lockdown Program so long as they have a current revenue loss of 40% or more and have been affected by qualifying public health restrictions, that:
- are based on an order or decision issued by a federal, provincial, or municipal government, or a local health authority in response to the pandemic
- are limited in scope based on one or more factors such as:
- geographical boundaries.
- type of business or other activity.
- risks associated with a particular location.
- result in sanctions or are an offence if you do not comply.
- require you or your non-arm’s-length tenant at the qualifying property to stop some or all regular activities at the qualifying property for at least seven days in a row such that the activities that were stopped account for at least approximately 25% of the total eligible revenues earned during the prior reference period from or in connection with the affected qualifying property.
Organizations that meet the above requirements for THRP will receive wage and rent subsidies for the period of October 24, 2021 to May 7, 2022.
In addition, from December 19 to February 12, 2022, companies that are subject to capacity restrictions of 50% or more and face current month declines in revenue of at least 25% can apply for THRP through the Local Lockdown Program.
Subsidy rates will be between 40 and 75% based on percentage of revenue lost from October 24, 201 to March 12, 2022. Rates will decrease to between 20 and 37.5% from March 13 to May 7, 2022.
Want to learn more about how this program impacts your business? Get in touch with Koroll & Company today. We would love to answer your questions.
