The Minister of Tourism, Culture, Industry and Innovation says they expect more than 2,000 businesses to apply for the Tourism and Hospitality Support Program.
Premier Dwight Ball and Minister Bernard Davis on Monday announced a $25-million program in support of the tourism and hospitality industry. Businesses can begin applying on Monday, June 8.
Provincially registered small and medium-sized tourism operators will be able to apply for a one-time, non-repayable grant of either $5,000 or $10,000, dependent on gross sales.
Minister Davis says it will provide immediate financial relief to operators who are dealing with substantial losses as well as fixed operating costs, providing support as many in the industry prepare to open.
The Premier says the program complements other provincial and federal financial relief programs.
Despite existing programs, Ball says there were still gaps to be filled. They’ve been working to identify those gaps, which he hopes this new program will fill.
Ball says throughout this whole process, they’ve learned that there are still some people left out in small groups, and indicates those groups will be addressed as well.
Government stressed that the funding is for “provincially registered” operators, meaning those operating establishments like unregistered Airbnbs will not be able to avail.
He says it was important to work with the successful groups they have within the province who have taken the time to register and make sure visitors have a good experience.
The Premier says they’re re-investing some of the tax money tourism operators pay back into those registered companies.
Meanwhile, the provincial government has been pushing the idea of “staycations” this summer as the province’s borders will be closed to outside travel.
Minister Bernard Davis says the Department of Tourism, Culture, Industry, and Innovation is currently working on a “staycation” marketing campaign, which he says is very important in advising people that it is safe to travel, and to highlight opportunities they have in the province.
However, there is still no firm timeline on when non-essential travel around the province will be allowed.
Premier Ball says as the province moves into Alert Level Three, there will be more information on how residents will be able to move around the province.
No One Plan to Solve COVID Issues: Hospitality NL
Hospitality Newfoundland and Labrador is welcoming the $25-million support program.
Chair of the Hospitality NL Board of Directors, Steve Denty says the program will help a lot of operators cover some of their fixed-costs and aid with infrastructure improvements to help get them through this difficult time.
However, Denty doesn’t think there is one simple plan that fixes everything.
He says while those dollar amounts may not be as significant for some larger businesses as it is for others, there will be many in the industry—possibly more than 2,000 businesses—who may be eligible, and those few thousand dollars could mean the difference of survival for some businesses.
📢 PRESS RELEASE: Hospitality NL Welcomes $25 Million Commitment to “Tourism and Hospitality Support Program” for Industry Operators – to read the entire @HospitalityNL press release please visit our website: https://t.co/tE1km7UQfa #TourismMatters #TourismWeek pic.twitter.com/l9K7GwbFpo
— Hospitality NL (@HospitalityNL) May 25, 2020
Denty says it’s important to remember that this doesn’t fix everything, and he hopes that those funds can serve as “bridge financing” to help some small businesses to get through the next period.
One of the big leads they’ve taken, according to Denty, is to make sure the industry is ready to provide a “staycation” experience in a safe manner for those who work in the establishments and for the customer.
He says the funding announced on Monday is one of the means in which they can get to that next level.