More help offered for tourism sector
Businesses in Kelowna’s vital tourism sector can now get more financial aid under the provincial government’s COVID-19 economic recovery plan.
Grants for tourism-related firms that have seen their revenues plummet during the pandemic have been increased from $30,000 to $45,000.
As well, small- and medium-sized businesses need only to a show a minimum revenue drop of 30% from previous levels, instead of 50%, to qualify for financial assistance.
“Now, more businesses can access this much-needed funding,” Ravi Kahlon, provincial Minister for Jobs, said in a Monday release.
“The additional $15,000 top-up on the grant for tourism businesses is particularly welcome news for the Okanagan as the tourism sector is such a major part of the economy and it has been significantly impacted by COVID-19,” Dan Rogers, executive director of the Kelowna Chamber of Commerce, said in an email.
Before the onset of the COVID-19 pandemic in early 2020, about 12,000 jobs in the Central Okanagan were connected to spending by visitors, Tourism Kelowna says.
Tourism spending in the Central Okanagan was valued at $337 million, with a total economic output of $1.25 billion, according to Tourism Kelowna.
But with travel restrictions due to the pandemic in place for much of the year, hotel occupancy so far this year in Kelowna has averaged only 44%, down 26%.
And revenues at restaurants have plunged, with in-house dining suspended at many locations and other establishments closing either permanently or temporarily because of COVID-19 exposures, or curtailing their hours of operation.
“B.C. restaurants need the support of government to get through the significant impacts of COVID19 on our industry,” said Ian Tostenson, president of the BC Restaurant and Foodservices Association. “Helping business owners pivot and get through this tough time is essential.”
In addition to boosting funding for tourism-related businesses from $30,000 to $45,000, the government also streamlined and opened up the application process. Changes include:
— making grants available for businesses that have been in operation for 18 months, instead of the previous three-year stipulation;
— business that are now temporarily closed or seasonal in nature are now eligible for support;
— the requirement to list a variety of remittance accounts, like registration numbers for the GST and provincial sales tax and WorkSafeBC, has been removed.
“The changes to the eligibility criteria are welcomed by the chamber, as is the streamlining of the application process,” said Rogers. “Many small businesses were expressing frustration with the lengthy process and requirements, so these adjustments will mean many more small businesses will be able to get help.”