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The THRP provides wage and rent subsidies (similar to the CEWS/CERS) to eligible entities in the tourism and hospitality industry that have experienced the most significant losses since the outset of the pandemic.

Examples of eligible organizations in the tourism and hospitality industry include hotels, restaurants, bars, festivals, travel agencies, tour operators, convention centres, convention and trade show organizers, and others.

Additional details on the definition of qualifying businesses within this category will be forthcoming. Eligible organizations would be required to meet the following two conditions to qualify for this program:

  1. An average monthly revenue reduction of at least 40 percent over the first 13 qualifying periods for the Canada Emergency Wage Subsidy (12-month revenue decline); and
  2. A current-month revenue loss of at least 40 percent.

The 12-month revenue decline would be calculated as the average of all revenue decline percentages for eligible organizations from March 2020 to February 2021 (claim periods 1-13, excluding claim period 10 or 11). Any periods in which an entity was not carrying on its ordinary operations for reasons other than a public health restriction (for example, because it is a seasonal business) would be excluded from this calculation. The existing rules would continue to apply for the purposes of calculating the current-month revenue decline.

Subsidy Rate Structure

Under this program, the maximum subsidy rate for the wage and rent subsidies would be set at 75 percent from October 24, 2021 to March 12, 2022 (claim periods 22 to 26).

The wage and rent subsidy rates would continue to be calculated based on current-month revenue losses compared to those of a prior reference period, as under existing rules. The subsidy rates would start at 40 percent for eligible organizations with a 40-per-cent current-month revenue decline, increasing thereafter in proportion to current-month revenue loss up to a maximum rate of 75 percent for those with a current-month revenue decline of 75 percent or higher.

The rent and subsidy rates would be reduced by half from March 13 to May 7, 2022 (claim periods 27 and 28).

Lockdown Support would be available at the current fixed rate of 25 percent and pro-rated based on the number of days a particular location was affected by a lockdown, as under existing rules.

Table 1, below, details the proposed wage and rent subsidy rate structure for organizations that qualify for the Tourism and Hospitality Recovery Program from October 24, 2021, until May 7, 2022.

 Periods 22-26
October 24, 2021 – March 12, 2022
Periods 27-28
March 13 – May 7, 2022
Current-month revenue decline  
75% and over75%37.5%
40-74%revenue decline
e.g., 60% revenue decline = 60% subsidy rate
revenue decline ÷ 2
e.g., 60% revenue decline ÷ 2 = 30% subsidy rate

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