Tourism and Hospitality Support Program Update

COVID-19 – Canadian Tax and Business News, release #38

Our COVID-19 Canadian Tax and Business News updates are our way of informing our clients, friends and business associates with recent information that may help businesses and individuals while coping with the outcomes from the COVID-19 pandemic.  

Our goal is to monitor the news and release relevant information as it becomes available.

The summary below is based on our understanding and interpretation of the announcements made by the government. The information below is in summary form and subject to change until the proposals are passed as legislation. Contact one of our professionals to discuss these matters in the context of your situation before acting upon such information.


New Programs Update

On October 21, 2021, Finance announced the introduction of two new targeted support programs for the tourism and hospitality sectors as well as hard-hit businesses. The announcement and other measures introduced were discussed in our publication Government Introduces New COVID Support Programs.

On November 24, 2021, Finance introduced legislation Bill C-2 An Act relating to economic recovery in response to COVID-19 to implement many of the measures previously announced. They have also released a backgrounder discussing eligibility criteria for the tourism and hospitality sectors.


Tourism and Hospitality Support Program (THRP)

The THRP will provide targeted wage and rent support to selected sectors of the tourism and hospitality industry that continue to struggle during the pandemic. Finance released a Backgrounder on November 24, 2021 which provides details regarding eligibility for the THRP.

Eligible Organizations include businesses with more than 50% of their pre-pandemic revenues earned from carrying on one or more eligible activities. A list of eligible activities is provided in the Backgrounder. The list has been reproduced below.

Eligible organizations would also be required to meet both of the following conditions to qualify for this program:

  1. An average monthly revenue reduction of at least 40% over the first 13 qualifying periods for the CEWS (12-month revenue decline calculated as the average of all revenue decline percentages for from March 2020 to February 2021 excluding claim period 10 or 11); and
  2. A current-month revenue loss of at least 40% compared to a prior reference period

For details on the applicable rates, please visit our previous publication. Business that do not qualify for the THRP may be eligible for the Hardest-Hit Business Recovery Program. Both programs will be administered by the Canada Revenue Agency, but application details have not been provided as of the date of this publication.


Types of Business Eligible for the THRP

  • Operating or managing a facility providing short-term lodging, such as a hotel, a motel, a cottage, a bed and breakfast, or a youth hostel.
  • Preparing and serving meals, snacks and beverages made to order for immediate consumption on or off the premises, such as a restaurant, a food truck, a cafeteria, a caterer, a coffee shop, a food concession, a bar, a pub, or a nightclub.


Would not include the operation of a facility primarily engaged in retailing food or beverage products, such as a supermarket or a convenience store


  • Operating a travel agency or as a tour operator, including:
    • acting as an agent for tour operators, transportation companies, and short-term lodging establishments in selling travel, tour and accommodation services; or
    • arranging, assembling and marketing tours.
    • Organizing, promoting, hosting, supporting, or participating in events that meet the artistic or cultural interests of their patrons, including live performances or exhibits intended for public viewing.
    • Preserving and exhibiting objects, sites and natural wonders of historical, cultural or educational value, such as the operation of a museum, a historic and heritage site, a zoo, a botanical garden, or a nature park.
    • Organizing, promoting, or supporting scenic and sightseeing tours, such as sightseeing or dinner cruises, steam train excursions, horse-drawn sightseeing rides, air-boat rides, hot-air balloon rides, or charter fishing services.
    • Providing charter bus services, if the buses do not operate on fixed routes and schedules, and the entire vehicle is rented, rather than individual seats.
  • Operating or managing an amusement or theme park, which would include:
    • operating a variety of attractions, such as mechanical rides, water rides, games, shows or theme exhibits; and
    • leasing space on a concession basis for these operations.
  • Operating or managing a facility or providing services that enable patrons to participate in recreational activities, including:
    • fitness and recreational sports centres;
    • downhill and cross-country ski/snowboard areas, and equipment such as ski lifts and tows (including revenues from equipment rental services and ski/snowboard instruction services provided at the area);
    • the operation of docking and storage facilities for pleasure-craft owners, with or without related activities, such as retailing fuel and marine supplies, boat repair and maintenance and rental services;
    • the operation of recreation and amusement facilities and services including establishments primarily engaged in maintaining non-gambling coin-operated amusement devices, in businesses operated by others; and
    • other amusement activities, such as amateur sports clubs, teams or leagues, archery or shooting, ballroom dancing, river rafting, curling clubs, mini golf and bowling.

Would not include i) golf, golf instruction and the ownership or operation of a facility that is a golf course, a golf driving range, or a golf clubhouse, ii) country clubs, and iii) professional sports clubs, teams or leagues or facilities used primarily by such organizations

  • Operating or managing serviced or unserviced sites to accommodate campers and their equipment for tents, tent trailers, travel trailers, and recreational vehicles, excluding mobile home sites.
  • Operating or managing an overnight recreational camp, such as a children’s camp, a family vacation camp, or an outdoor adventure retreat.
  • Operating or managing a hunting camp, or a fishing camp.
  • Operating or managing a duty-free retail store at a land border crossing where the only exit route is to the United States.
  • Operating or managing a facility that is primarily engaged in exhibiting motion pictures, such as a cinema, or a drive-in theatre.
  • Operating or managing an amusement arcade, such as a family fun centre, an indoor play area, a pinball arcade, or a video game arcade.
  • Operating a facility allowing passengers to board and leave a cruise ship.
  • Operating or managing an airport, including renting hangar space and providing baggage handling, cargo handling, and aircraft parking services.
  • Operating or managing a casino.
  • Promoting a destination or region in Canada for the purpose of attracting tourism.
  • Organizing, planning, promoting, hosting or supporting:
    • conventions, trade shows or festivals; or
    • weddings, parties, or similar events.
  • Promoting the interests of the members of an industry organization or association, if the members are primarily engaged in activities described above.


Backgrounder Government introduces legislation to create jobs and implement targeted COVID-19 support

Types of Business Eligible for the Tourism and Hospitality Recovery Program

Targeting COVID-19 Support Measures

As we all try to stay safe, we need to remind ourselves business will get back to normal but in the meantime let’s all do our part to get to normal as soon as we can. If you have any questions or require further information, don’t hesitate to reach out to us.