With the tourism sector staring down a long road to recovery, the federal government has introduced a new program to shorten the distance.
The Tourism Relief Fund will provide $500 million for businesses in the industry through non-repayable contributions and interest-free loans.
“(Business owners) wanted to have access to non-repayable contributions because they’re facing a lot of debt,” said Melanie Joly, Minister of Economic Development.
Atlantic Canada Opportunities Agency (ACOA) will distribute the $48.8 million earmarked for businesses in the Atlantic provinces.
Joly believes that the pandemic has harmed tourism throughout the nation but may have prompted some Canadians to explore nature in their own backyard.
“We wanted to be there in both realities that is why this funding will help create new destinations or enhance destinations,” said Joly.
“We’re already in the midst of the summer season and borders are still closed that’s why we wanted to announce this funding to make sure we could keep the sector vibrant and make sure they survive the pandemic.”
In addition, 10% of the Tourism Relief Fund will specifically aid Indigenous tourism initiatives. The industry experienced growth at a fast pace before the pandemic hit according to Joly, but the path to recovery will be more complicated.
“They were a bit more fragile because they were many times new businesses or didn’t have access to liquidity and capital because of systemic issues.”
