In a new year in which there has been little so far to cheer, ACTA is welcoming financial announcements on several fronts that it says represent “good news” for travel agencies and independent travel agents.
The positive developments include announcements from the federal government and the Travel Industry Council of Ontario (TICO), with ACTA breaking down the details as follows:
CEBA/RRRF loan repayment extension
• The repayment deadline to qualify for partial loan forgiveness is extended by a year to Dec. 31, 2023.
• For the CEBA, repayment on or before the end of 2023 will result in loan forgiveness up to 1/3 of the total value (up to $20,000).
• Outstanding loans after 2023 will be converted to a two-year term loan with interest of 5% per year, to be paid in full by Dec. 31, 2025.
• No new applications for CEBA or RRRF loans are being accepted at this time.
TICO fee waiver
• TICO annual registration renewal fees and Compensation Fund contributions owed from April 1, 2022 to March 31, 2023 are waived for travel agencies and wholesalers.
• The waiver applies to all those who are licensed with TICO as of March 31, 2022.
• Registrants are still required to complete and file a Registration Renewal Form and Compensation Fund Form (Form-1), but no payments are owed.
Canada Worker Lockdown Benefit
• The CWLB is not a sector-specific program and is available to all Canadian residents. Individuals must determine personally if they meet the criteria established by the Canada Revenue Agency.
• Furloughed travel agency employees and independent travel agents are encouraged to contact the Canada Revenue Agency to discuss their personal eligibility: 1-800-959-8281
ACTA president Wendy Paradis said says the association lobbied both TICO and the Ontario government for relief from registration fees for another year and stated, “We are pleased that the Ontario government gave additional exceptional funding to TICO so that fees could once again be waived for a third year. Removing this financial barrier will make a significant difference for many Ontario travel agencies…”
Paradis says ACTA is also advocating a full review of TICO and the Compensation Fund and is also lobbying the governments of British Columbia and Quebec for similar fee waivers during the COVID-19 crisis.
ACTA advises also notes that the Government of Canada has announced extensions to the Canada Emergency Business Account (CEBA) and Regional Relief and Recovery Fund (RRRF) loan repayment deadlines.
“The COVID-19 crisis is lasting much longer than we all anticipated and ACTA is advocating for further loan forgiveness to support industry survival,” says Paradis. That includes recognition of the need for financial support for independent travel agents and clarity on their access to the Canada Worker Lockdown Benefit (CWLB), which provides $300/week to eligible workers in a lockdown region.
During the holidays, ACTA submitted a proposal to the Ministry of Tourism – the Independent Travel Agent Relief Program (ITARP) – which pushes for equality in terms of financial support for independent travel agents and other small businesses.
ACTA further notes that with rent and wage subsidies are scheduled to drop significantly starting in March, it has already begun advocating for the extension of the Tourism and Hospitality Recovery Program wage and rent subsidies at the highest levels to support travel and tourism business survival.