With the end of the CEWS and CERS on October 23, 2021, the Government of Canada has announced the Tourism and Hospitality Recovery Program (THRP) to help support impacted businesses and organizations.

The THRP will provide rent and wage subsidies to organizations in selected sectors of the tourism and hospitality industry that have been deeply affected since the outset of the pandemic.

What types of organizations can apply?

Examples of eligible organizations in the tourism and hospitality industry include:

  • hotels
  • restaurants
  • bars
  • festivals
  • travel agencies
  • tour operators
  • convention centres
  • convention organizers
  • trade show organizers
  • and others*

*Additional details on the definition of qualifying businesses within this category will be released by the government in the upcoming weeks.

Who is eligible?

Eligible organizations are required to meet both of the following two conditions to qualify:

  1. An average monthly revenue reduction of at least 40% over the first 13 qualifying periods for the Canada Emergency Wage Subsidy (ie. a 12-month revenue decline), and
  2. A current-month revenue loss of at least 40%.
  • The 12-month revenue decline would be calculated as, the average of all revenue decline percentages from March 2020 to February 2021 (claim periods 1-13, excluding claim period 10 or 11).
  • Any periods in which an entity was not carrying on its ordinary operations for reasons other than a public health restriction (ex. because it is a seasonal business) would be excluded from this calculation.
  • These rules would continue to apply for the purposes of calculating the current-month revenue decline.

Specifics on the CEWS qualifying periods can be found here.

How much is the subsidy?

The maximum subsidy rate for the wage and rent subsidies would be set at 75% from October 24, 2021 to March 12, 2022 (claim periods 22 to 26).

  • The wage and rent subsidy rates would continue to be calculated based on current-month revenue losses compared to those of a prior reference period.
  • The subsidy rates would start at 40% for eligible organizations with a 40% current-month revenue decline
  • The subsidy then increases in proportion to current-month revenue loss up to a maximum rate of 75% (for those with a current-month revenue decline of 75% or higher).
  • The rent and subsidy rates would be reduced by half from March 13, 2022 to May 7, 2022 (claim periods 27 and 28).
Current-month revenue decline Periods 22-26 (October 24, 2021 – March 12, 2022) Periods 27-28 (March 13 – May 7, 2022)
75% and over 75% 37.5%
40-74% Amount of revenue decline (ex. 60% Decline = 60% Subsidy) Amount of revenue decline ÷ 2 (ex. 60% Decline = 30% Subsidy)
0-39% 0% (not eligible) 0% (not eligible)

How long is the subsidy available for?

The initial announcement only covered support until November 20, 2021. However, the government is proposing to introduce legislation as soon as possible to extend these programs until May 7, 2022, with authority for further amendments through regulations until July 2, 2022.

How do I apply?

Applications are not currently open. Application details have not yet been finalized or published by the government, but they are expected to be released in the upcoming weeks.

We will publish updates here and on our social media channels (Facebook, Twitter, LinkedIn) at that time.

Have questions?

If you have any questions about the Tourism and Hospitality Recovery Program please contact one of our Accounting experts or complete the contact form below.

James Nakashima

James Nakashima

As a Chartered Business Valuator, Certified Divorce Financial Analyst, and Chartered Professional Accountant, James understands value. He works with a variety of business owners to increase the worth of their business.

Service Expertise: Audit , Litigation Support , Valuations
Industry Expertise: Agriculture , Small Business , Non-Profit

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