Bill C-2, which paves the way for federal financial support for travel agencies through May 2022 was passed by parliament late last week, just as the industry faced the body blow of a re-introduction of a government warning against non-essential travel in a bid to slow the spread of the explosive Omicron variant. However, the good news was tempered by the bad news that the bill will not help most independent travel agents.
The fast-tracked C-2 passed with a day to spare before parliament broke for its holiday break, not to reconvene until Jan. 31 – a lengthy sojourn that would imperil many travel agencies, warned ACTA in early December.
“We implore this government not to go on their holiday break without passing this bill,” ACTA president Wendy Paridis said at the time, a sentiment that was reiterated through the month.
In words that would prove prescient, Paradis said, “The government has brought in new travel restrictions and testing requirements that have dampened Canadians’ enthusiasm for travel and it is imperative that they support travel agencies through this. This bill is the only lifeline open to travel agencies right now.”
That wish came true late Thursday night with passage of the bill. While not devoted exclusively to travel, it contains the Tourism and Hospitality Recovery Program, which would provide up to 75% wage and rent support to businesses with revenue losses of over 40%.
On Friday, Paradis, said, “The program will provide critically needed wage and rent subsidies to hard-hit travel agencies through to May 2022.”
Passage of the bill followed months of intense advocacy by a number of tourism and hospitality organizations, including ACTA, the latter of which last week had urged members to write to their MPs in a last-ditch effort to urge them to pass the bill before the parliamentary break.
With the bill finally passed, ACTA said it was critical for the Ministry of Finance and the Canada Revenue Agency to implement the program without delay.
“As governments respond to the Omicron variant of concern with new travel restrictions and advisories, this support becomes increasingly important to sustain businesses throughout the winter.” Paradis said, adding, “Travel agencies have been without support since October and still have little to no revenue. The new restrictions and fear about the Omicron variant have jeopardized any hope of recovery this winter.”
Although she didn’t put a specific time frame on when benefits will start to flow, Ministry of Finance Chrystia Freeland said the government plans to use existing systems for applications and payments in order to quickly dole out aid.
Independent agents not eligible
Unfortunately, despite intense lobbying by ACTA and others, most independent travel agents are not eligible for support under the Tourism and Hospitality Recovery Program.
“These entrepreneurs have also been devastated by the pandemic and the government must take action,” said Paradis, who said that ACTA would continue to advocate for a new program that supports travel agency furloughed employees, sole proprietors, and independent contractors.