FEDERAL BUDGET 2021: A general look and response from the industry

Piggy Bank with Canada flag

The federal Liberal government’s first budget in more than two years makes promises on child care, the environment and readying the country’s economy for a post-pandemic rebound. But there is also a grab bag of other promises as well, including travel and tourism. Here’s a brief runthrough and a response from ACTA and TIAC.

• $100 million over three years for innovative mental health interventions for populations disproportionately impacted by COVID-19, including health-care workers, front-line workers, youth, seniors, Indigenous people, and racialized and Black Canadians.

• $50 million over two years for those suffering from PTSD and other mental-health trauma from COVID-19.

• $28.6 million over five years, and $5.7 million per year ongoing, to address antimicrobial resistance.

• $82.5 million this year to help Canadian airports better test for COVID-19, $6.7 million to acquire and use sanitization equipment, and $271 million for pandemic screening efforts.

• $57.6 million to help employers offset the costs of isolating temporary foreign workers upon their arrival in Canada.

• $656.1 million over five years, and $123.8 million ongoing, to the Canada Border Services Agency (CBSA) to modernize Canada’s borders, including touchless and automated systems, contraband detection systems and infrastructure security.

• $9.9 million over two years for the Canadian Space Agency to plan the next generation of Earth-observation satellites.

• $17.6 million over five years, and $3.4 million per year ongoing, to create a Data Commissioner that would help government and business protect people’s personal data and encourage innovation in the digital marketplace.

• $60 million over the next two years to protect wetlands and trees on farms, and $10 million over the next two years to power farms with clean energy.

• $25 million to the Northwest Territories to support the construction of 30 new public housing units across the territory, and $25 million to Nunavut to redevelop and refurbish about 100 new housing units.

• $45 million over two years to pilot a program aimed at reducing veteran homelessness.

• $200 million through the regional development agencies to support major festivals, and $200 million through Canadian Heritage to support local festivals, community cultural events, outdoor theatre performances, museums, amateur sport events, and more.

• $500 million to create a tourism relief fund to support investments by local tourism businesses in adapting to and recovering from COVID-19.

• $300 million over two years to establish a recovery fund for the heritage, arts, culture, heritage and sport sectors and $70 million over three years to help the live-music sector.

• $21 million in 2021-22 to support CBC/Radio-Canada through the pandemic.

• $39.3 million over two years to the book industry.

• $101 million over two years to help wineries adapt to ongoing and emerging challenges.

• $200 million to establish a fund to combat anti-Black racism and improve social and economic outcomes in Black communities.

• $15 million over three years for a new fund to address challenges facing the LTBTQ community.

• $116 million over two years to address the opioid epidemic and other substance-abuse concerns.

• $45 million over three years to make sexual and reproductive health care information and services more accessible for vulnerable populations.

• $15.4 million over two years to support the creation of a national autism strategy.

• Notice that the government plans to start taxing vaping products, and a $4-per-carton increase on excise duties for cigarettes.

• $14.9 million over four years to support the preservation of Indigenous heritage through Library and Archives Canada.

• $14.3 million over five years to ensure Indigenous women and girls have access to sports activities.

• $126.7 million over three years to prevent racism and discrimination in health-care systems. This funding will support patient advocates, health system navigators, and cultural safety training for medical professionals.

• $74.8 million over three years to improve access to justice for Indigenous people and address systemic discrimination and the overrepresentation of Indigenous people in the justice system.

• $13.4 million over five years, with $2.4 million ongoing, to commemorate the history and legacy of residential schools.

• $180.4 million over three years to support student bilingualism across the country.

• $312 million over five years, and $41.4 million ongoing, to implement legislation targeting gun violence, smuggling and trafficking.

• $85.3 million over five years to support independent legal advice and representation for victims of sexual assault, as well as to support pilot projects for victims of intimate partner violence.

• $20.7 million over five years for the RCMP to pursue online child sexual exploitation investigations.

• $40.4 million over five years, and $10 million ongoing, to support up to 25 additional drug treatment courts.

• $75 million over five years, and $13.5 million ongoing, to the RCMP to combat systemic racism through new recruitment and training processes, community engagement and other measures.

• $154.6 million to limit the spread of COVID-19 in federal correctional institutions.

• $5.6 million over five years to commemorate the victims of Ukraine International Airlines PS752 and Ethiopian Airlines Flight 302, including through the development of scholarships.

• Save $1.1 billion over five years, and $222.5 million per year ongoing, by cutting back on government travel.

ACTA response

In a statement ACTA said it is pleased to see the extension of the federal support programs through to September. This will bring continued relief to travel agencies, travel agents and independent contractors.

However, ACTA anticipates that the industry will need extended support through to the end of the year – or until restrictions on travel are lifted.

ACTA’s recent survey of over 1,000 travel agents revealed that 75% would not survive without continued aid until the end of the year.

On Friday, April 23 ACTA will host French and English webinars with Lisa Pierce, Vice President, Canada & USA Sales and Tracey Bellamy, Director, Canada Sales & Global Accounts to discuss the Air Canada refund program including commission protection procedures. Please register for the live webinar and email any advance questions to actaadvocacy@acta.ca by Wednesday April 21 at 5:00 PM EST.

TIAC response

The Tourism Industry Association of Canada (TIAC) is pleased to see the specific mention and support outlined for tourism in the 2021 Federal budget.

“Canada’s visitor economy was the first-hit and hardest-hit industry from the COVID pandemic, and will be one of the last to recover. Sector specific support is critical. It is reassuring that our sector is being acknowledged and that its unique needs are being recognized as we continue to look for hope of recovery through the pandemic,” says TIAC’s President and CEO, Beth Potter.

2021 is a critical year for the restart of Canada’s tourism economy. TIAC’s 2021 Tourism Recovery Plan has been presented as a roadmap to government on the path forward for the tourism economy. A number of outlined recommendations were addressed today, and TIAC looks forward to continued collaboration with government on the intricacies and roll out of these programs.