Liberals push for tourism top-up
Liberal MLA Heath MacDonald is calling for an additional provincial wage subsidy for tourism operators affected by the COVID-19 pandemic.
During question period on Friday, MacDonald said tourism operators have been hard-hit by the pandemic, with some expecting between two and three per cent of their usual revenue over the coming summer season. MacDonald suggested the provincial government offer a 25 per cent wage subsidy for tourism operators, on top of the current Canada Emergency Wage Subsidy program offered by the federal government, which offers a wage subsidy to employers of up to 75 per cent.
MacDonald also mentioned a program in Australia that is providing between $20,000 and $100,000 in cash-flow to businesses that continue to employ people.
“In Australia they are offering taxfree cash-flow boosts to small businesses,” MacDonald said.
“Perhaps we should be asking for 25 per cent from our government – top up on the 75 per cent that the federal government is already doing for wage subsidies.”
In response, Tourism Minister Matthew MacKay said his department has been reaching out to tourism operators with help.
Nonetheless, MacKay said he would look into the suggestions from MacDonald.
P.E.I. tourism operators have been warning that uncertainty about travel restrictions could pose a long-term threat to the industry on the Island. Some welcomed the recent announcement that P.E.I. would allow entry to seasonal residents beginning in June.
But operators have also said the lack of certainty surrounding when travel restrictions may ease between P.E.I. and Nova Scotia and New Brunswick has made it impossible for operators to assess the risk of opening for the season.
Given P.E.I.’s capacity to house over 1.5 million tourists within local hotels and Inns, many operators will be unable to survive a season in which the industry relies solely on local staycations.
MacDonald said he has talked with cottage owners and tourism operators in more rural regions. He said loan programs will not be enough to keep many of these operators in business.
“Deferred loans are not the answer to this. They need something that’s going to keep the lights on,” MacDonald said.