Feds launch fund to help tourism recover and grow

In March 2020, tourism came to a screeching halt as public safety measures kept most Canadians home and international borders closed. Now that vaccination efforts are paying off and declining case rates are allowing the easing of restrictions, tourism businesses and organizations from coast to coast can look to the future.

Yesterday the federal government launched $500-million in funding for the new Tourism Relief Fund. Eligible organizations can now submit applications to support the tourism sector prepare to welcome back domestic travelers and reposition Canada as a world-class destination.

Canada’s regional development agencies (RDAS) will deliver $485 million directly to businesses and organizations to help them adapt their operations to meet public health requirements while investing in products and services to facilitate future growth.

Indigenous communities that rely heavily on tourism have also been disproportionately affected by COVID-19. In order to close this gap, the Government of Canada is investing a minimum of $50 million of the Tourism Relief Fund in Indigenous tourism projects.

In addition, $15 million, delivered by Innovation, Science and Economic Development Canada, will support destination development, seasonal and local attractions, and human resources and skills development.

The Tourism Relief Fund, part of the $1 billion in tourism supports announced in Budget 2021, will help tourism businesses bounce back, while making Canada a unique premier destination when it is safe for international visitors to return.

According to Statistics Canada, the tourism sector generated an estimated $104.4 billion in revenues in 2019, supported approximately 1 in 10 jobs in communities across Canada and contributed an estimated $45.1 billion in gross domestic product.

Prior to the pandemic, Indigenous tourism supported over 41,000 jobs and accounted for $2 billion of Canada’s GDP.

To help manage the severe impact of COVID-19 on the sector, tourismrelated businesses and not-for-profit organizations have received $15.4 billion in support for tourism, arts, and culture sectors to pay workers, provide rent and mortgage support, as well as providing liquidity support for small businesses.