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Tourism and Hospitality Recovery Program (THRP)

As a business, charity, or non-profit in Canada who has been affected by the COVID-19 pandemic, you may be eligible for a wage subsidy, a rent subsidy, or both through the THRP.

You may qualify if you are either:

  • part of the tourism, hospitality, arts, entertainment, or recreation sectors, or
  • affected by a qualifying public health restriction

Who can apply for the THRP

There are two ways eligible organizations can qualify for the THRP:

Tourism, hospitality, arts, entertainment, and recreation sectors: Option 1 of 2

The first way to qualify for the THRP is by meeting the following three conditions:

Find out if your activities are considered part of tourism, hospitality, arts, entertainment, or recreation

Organizations subject to a qualifying public health restriction or qualifying partial (capacity-limiting) public health restriction: Option 2 of 2

The second way to qualify for the THRP was introduced as the Local Lockdown Program. It is available to eligible organizations, regardless of sector.

The conditions to qualify depend on which claim period you are applying for.

For claim periods 24 to 26 (December 19, 2021, to March 12, 2022), you must meet the following two conditions:

  • You were subject to either a qualifying public health restriction or a qualifying partial (capacity-limiting) public health restriction
  • You have a claim period revenue drop of at least 25%

For claim periods 22, 23, 27 and 28, you must meet the following two conditions:

Find out what a qualifying public health restriction and a qualifying partial (capacity-limiting) public health restriction are

Support in the event of public health restrictions

If you are not a qualifying tourism or hospitality entity, your business, charity or non-profit may be eligible for a subsidy under the Tourism and Hospitality Recovery Program (THRP) if you are subject to a:

  • qualifying public health restriction, or
  • qualifying partial (capacity-limiting) public health restriction

To qualify for support in the event of a qualifying public health restriction in a claim period, you must:

  • meet all conditions that relate to a public health restriction
  • meet 2 additional conditions that relate to a qualifying public health restriction
  • have a minimum 40% revenue drop for the claim period you are applying for

To qualify for support in the event of a qualifying partial (capacity-limiting) public health restriction in claim periods 24 to 26 you must:

  • meet all conditions that relate to a partial (capacity-limiting) public health restriction
  • meet 2 additional conditions that relate to a qualifying partial (capacity-limiting) public health restriction
  • have a minimum 25% revenue drop for the claim period you are applying for

Public health restriction and partial (capacity-limiting) public health restriction

Both a public health restriction and a partial (capacity-limiting) public health restriction are public health orders that meet certain conditions.

Many of these conditions are the same for both types of health restriction. They both must:

  • be based on an order or decision issued by a federal, provincial, or municipal government, or a local health authority in response to the COVID-19 pandemic
  • be limited in scope based on one or more factors such as:
    • geographical boundaries
    • type of business or other activity
    • risks associated with a particular location
  • result in sanctions or be an offence if you do not comply

In addition, there are different conditions that need to be met for each type of health restriction:

Compare the differences between a public health restriction and a partial (capacity-limiting) public health restriction
Public health restriction Partial (capacity-limiting) public health restriction
Requires you or your non-arm's-length tenant to stop some or all regular activities at the qualifying property for at least 7 days in a row. Requires you or your non-arm's-length tenant to reduce some or all regular activities due to capacity limitations or similar restrictions by at least 50% at the qualifying property for at least 7 days in a row.
The activities that were stopped account for at least approximately 25% of the eligible revenues earned during the prior reference period from or in connection with the affected qualifying property. Not applicable.
Relevant for all THRP claim periods. Relevant only for THRP claim periods 24 to 26.

You do not qualify for support if you are already restricted or closed because you failed to comply with a previous public health order or decision.

Qualifying public health restriction and qualifying partial (capacity-limiting) public health restriction

A qualifying public health restriction and a qualifying partial (capacity-limiting) public health restriction are similar, but the conditions are different.

Compare the differences between a qualifying public health restriction and a qualifying partial (capacity-limiting) public health restriction
Qualifying public health restriction means that: Qualifying partial (capacity-limiting) public health restriction means that:
You or your non-arm’s-length tenant had one or more qualifying properties that was subject to a public health restriction for at least 7 days in the claim period you are applying for.
How the 7-day conditions work for a qualifying public health restriction
You or your non-arm’s-length had one or more qualifying properties that was subject to a partial public health restriction for at least 7 days in the claim period you are applying for.
How the 7-day conditions work for a qualifying partial public health restriction
The activities that were stopped account for at least approximately 25% of your total eligible revenue (together with the eligible revenue of any non-arm's-length tenants) earned during the prior reference period.
How the 25% revenue condition works for a qualifying public health restriction
The activities that were reduced account for at least approximately 50% of your total eligible revenue (together with the eligible revenue of any non-arm's-length tenants) earned during the prior reference period.
How the 50% revenue condition works for a qualifying partial public health restriction
Relevant for all THRP claim periods. Relevant only for THRP claim periods 24 to 26.

Understand how the 7-day conditions and revenue conditions work

How the 7-day conditions work for a public health restriction and a qualifying public health restriction

A public health restriction requires that, as a result of a public health order, some or all of the activities at (or in connection with) the qualifying property must stop for:

  • at least 7 days in a row, but
  • the days can span 2 different claim periods.

Activities includes your own activities or the activities of any non-arm’s-length tenants who use the property.

In addition, a qualifying public health restriction requires that you or your non-arm’s-length tenants have at least one qualifying property that is subject to a public health restriction for:

  • at least 7 days in the claim period, but
  • the days do not need to be in a row.
Example

You operate a hairdressing business which has 4 different locations. Each location is a qualifying property.

On 2 recent occasions, a public health order required all of the hairdressing activities at 2 of your locations to stop. Hairdressing activities at your other locations were not affected and continued as usual.

You closed the first affected location because hairdressing activities account for all of the activities at that location.

You kept the other affected location open because you earn some revenue from selling haircare products at that location.

Both of your affected locations met all of the other conditions required to be subject to a public health restriction.

You want to know if your affected locations meet the 7-day condition in order to apply for claim period 22.

Step 1: Determine if your affected locations meet the 7-day condition required for a public health restriction

Dates your hairdressing activities were required to stop:

  • October 18 to October 27, 2021, inclusive (10 days in a row which span claim periods 21 and 22), and
  • November 18 to November 24, 2021, inclusive (7 days in a row which span claim periods 22 and 23)

Both of your affected locations meet the 7-day condition for a public health restriction in claim period 22 because:

  • you were required to stop hairdressing activities at those locations for at least 7 days in a row, and
  • some of those days occurred in claim period 22

Step 2: Determine if your affected locations meet the 7-day condition required for a qualifying public health restriction

Claim period 22:

  • started on October 24, 2021, and
  • ended on November 20, 2021

Days the hairdressing activities were required to stop in claim period 22:

  • 4 days at the beginning of period 22 (October 24 to 27, inclusive), and
  • 3 days at the end of period 22 (November 18 to 20, inclusive)

Both of your affected locations meet the 7-day condition for a qualifying public health restriction in claim period 22 because:

  • you were required to stop hairdressing activities at those locations for at least 7 days in claim period 22, and
  • you met the 7-day condition required for a public health restriction in step 1
Conclusion:

Your hairdressing business meets the 7-day conditions for both a public health restriction and a qualifying public health restriction in claim period 22.

How the 25% revenue condition works for a public health restriction and a qualifying public health restriction

You must consider the eligible revenue you earned during the prior reference period for the claim period you are applying for to determine if you meet the 25% revenue conditions.

A public health restriction and a qualifying public health restriction both require that at least approximately 25% of eligible revenue you earned in the prior reference period came from the activities that were required to stop.

For a public health restriction, the 25% revenue condition is determined on a qualifying property by qualifying property basis.

This means that at least 25% of the eligible revenues earned during the prior reference period from (or in connection with) each affected qualifying property came from the activities that were required to stop.

If you have any non-arm’s-length tenants at an affected property, use the eligible revenue they earned from (or in connection with) that property during the prior reference period in your calculation.

However, for a qualifying public health restriction, the 25% revenue condition is based on your total eligible revenue.

This means that at least approximately 25% of the total eligible revenue earned in the prior reference period came from the activities that were required to stop. When you calculate your total eligible revenue, you must consider all of your eligible revenue, not only eligible revenue from properties that were subject to a public health restriction.

If you have any non-arm's-length tenants at any of your qualifying properties, include the total eligible revenue they earned during the prior reference period in your calculation.

Example

You operate a hairdressing business which has 4 locations. Each location is a qualifying property.

During claim period 22, a public health order required all of the hairdressing activities at 2 of your locations to stop. Hairdressing activities at your other 2 locations were not affected and continued as usual.

You closed the first affected location because hairdressing activities account for all of the activities at that location.

You kept the other affected location open because you earn some revenue from selling haircare products at that location.

Both of your affected locations met all of the other conditions required to be subject to a public health restriction.

You want to know if you meet the 25% revenue condition in order to apply for claim period 22.

This example assumes you use the general approach to determine your prior reference period when calculating your subsidy amounts. Your prior reference period for claim period 22 is November 2019. This means you will use the eligible revenue you earned from hairdressing activities in November 2019 for your calculations.

Step 1: Determine if your affected locations meet the 25% revenue condition required for a public health restriction.

In November 2019, you earned eligible revenues of $25,000 at each of your 4 locations, for a total of $100,000 in eligible revenues.

At the first affected location, all of the eligible revenue you earned at that location during November 2019 came from hairdressing activities. This means that 100% of the eligible revenue you earned at that location came from hairdressing activities:

($25,000/$25,000) x 100 = 100%

At the other affected location, you earned eligible revenue from hairdressing activities and from selling haircare products:

  • $15,000 came from hairdressing activities
  • $10,000 came from selling products

This means that 60% of the eligible revenue earned at that location during November 2019 came from hairdressing activities:

($15,000/$25,000) x 100 = 60%

Both of your affected locations meet the 25% revenue condition for a public health restriction for claim period 22 because:

  • the activities that were required to stop at each affected location account for at least 25% of the eligible revenues that each location earned during the prior reference period

Step 2: Determine if your business meets the 25% revenue condition required for a qualifying public health restriction

The total eligible revenue your hairdressing business earned in November 2019 was $100,000:

$25,000 x 4 locations = $100,000

At the location that was closed, 25% of the total eligible revenue earned by your hair salon in November 2019 came from hairdressing activities:

($25,000/$100,000) x 100 = 25%

At the other affected location, 15% of the total eligible revenue earned by your hairdressing business in November 2019 came from hairdressing activities:

($15,000/$100,000) x 100 = 15%

Add the percentages from both of the affected locations. This gives you the total percentage of eligible revenue those locations earned from hairdressing activities in November 2019:

(25%) + (15%) = 40%

Your hairdressing business meets the 25% revenue condition for a qualifying public health restriction for claim period 22 because:

  • the activities that were required to stop at your affected locations account for at least approximately 25% of the total eligible revenues earned from all locations in the prior reference period, and
  • you met the 25% revenue condition required for a public health restriction in step 1
Conclusion:

Your hairdressing business meets the 25% revenue conditions required for both a public health restriction and a qualifying public health restriction in claim period 22.

How the 7-day conditions work for a partial (capacity-limiting) public health restriction and a qualifying partial (capacity-limiting) public health restriction

A partial (capacity-limiting) public health restriction requires that, as a result of a public health order, some or all of the activities at (or in connection with) a qualifying property have been reduced by means of capacity or similar restriction by 50% or more for:

  • at least 7 days in a row, but
  • the days can span 2 different claim periods.

These activities include your own activities or the activities of your non-arm’s-length tenants who use the property.

In addition, a qualifying partial (capacity-limiting) public health restriction requires that you or your non-arm’s-length tenants have at least 1 qualifying property that is subject to a partial (capacity-limiting) public health restriction for:

  • at least 7 days in the claim period, but
  • the days do not need to be in a row.
Example

You operate a corporate training business which has 4 locations where you exclusively offer in-person training events. Each location is a qualifying property.

On 2 recent occasions, a public health order required a 50% reduction in capacity for in-person training events at 2 of your locations.

Both of your affected locations met all the other conditions required to be subject to a public health restriction.

You want to know if you meet the 7-day condition in order to apply for claim period 24.

Step 1: Determine if your 2 locations meet the 7-day condition required for a partial (capacity-limiting) public health restriction

Dates your capacity was reduced:

  • December 13 to December 22, 2021, inclusive (10 days in a row which span claim periods 23 and 24), and
  • January 12 to January 18, 2022, inclusive (7 days in a row which span claim periods 24 and 25)

Both of your affected locations meet the 7-day condition for a public health restriction in claim period 24 because:

  • they were affected by a 50% reduction in capacity at those locations for at least 7 days in a row, and
  • some of those days occurred in claim period 24

Step 2: Determine if the 2 locations meet the 7-day condition for the purpose of a qualifying partial (capacity-limiting) public health restriction

Claim period 24:

  • started on December 19, 2021
  • ended on January 15, 2022

Days the capacity was reduced for in-person training events at the two affected locations in claim period 24:

  • 4 days at the beginning of period 24 (December 19 to 22, inclusive), and
  • 4 days at the end of period 24 (January 12 to 15, inclusive)

Both of your affected locations meet the 7-day condition for a qualifying partial (capacity limiting) public health restriction in claim period 24 because:

  • the capacity at the two locations was reduced by 50% or more for at least 7 days during claim period 24, and
  • you met the 7-day condition required for a partial public health restriction in step 1
Conclusion:

Your corporate training business meets the 7-day condition for both a partial (capacity-limiting) public health restriction and a qualifying partial (capacity-limiting) public health restriction in claim period 24.

How the 50% revenue condition works for a partial (capacity-limiting) public health restriction and a qualifying partial (capacity-limiting) public health restriction

A partial (capacity-limiting) public health restriction has no condition related to eligible revenue.

This means that the 50% revenue condition only applies for a qualifying partial (capacity-limiting) public health restriction.

A qualifying partial (capacity-limiting) public health restriction requires that at least approximately 50% of the total eligible revenue you earned during the prior reference period came from the activities that were reduced due to a partial (capacity-limiting) public health restriction.

When you calculate your total eligible revenue, you must consider all of your eligible revenue, not only eligible revenue from properties that were subject to a public health restriction.

If you have any non-arm's-length tenants at any of your qualifying properties, include the total eligible revenue they earned during the prior reference period in your calculation.

Example

You operate a corporate training business which has 4 locations where you exclusively offer in-person training events. Each location is a qualifying property.

During claim period 24, a public health order required a 50% reduction in capacity at 2 of your locations.

Your other 2 locations were not subject to a partial (capacity-limiting) public health restriction and could operate at full capacity.

Both of your affected locations met all of the other conditions required to be subject to a partial (capacity-limiting) public health restriction.

You want to know if you meet the 50% revenue condition for a qualifying partial (capacity-limiting) public health restriction, in order to apply for claim period 24.

This example assumes you use the general approach to determine your prior reference period when calculating your subsidy amounts. Your prior reference period for claim period 24 is January 2020. This means you will use the eligible revenue you earned from in-person training activities in January 2020 for your calculations.

Your 2 locations that were subject to a partial (capacity-limiting) public health restriction earned $50,000 each in January 2020.

Your other 2 locations earned $30,000 each in January 2020. These are the locations that could operate at full capacity.

The total eligible revenue earned from in-person training activities at your 4 locations in January 2020 was $160,000:

$50,000 + $50,000 + $30,000 + $30,000 = $160,000

At each of the locations that were subject to a partial (capacity-limiting) public health restriction, the limited activities at the location accounted for 31.25% of the total eligible revenue of your corporate training business in January 2020:

($50,000/$160,000) x 100 = 31.25%

Add the percentages from both of the affected locations. This gives you the total percentage of eligible revenue earned from those locations in January 2020:

(31.25%) + (31.25%) = 62.50%

Conclusion

Your corporate training business meets the 50% revenue condition for a qualifying partial (capacity-limiting) public health restriction in claim period 24 because:

  • the activities that were reduced due to capacity restrictions at your 2 affected locations due to the partial (capacity-limiting) public health restriction account for at least approximately 50% of the total eligible revenue you earned during the prior reference period.

Eligibility for COVID-19 business subsidies

There are other ways to qualify for wage or rent subsidies if you've been affected by the COVID-19 pandemic, even if you do not qualify for the THRP. If you're not sure which subsidy may fit your situation:

Applying for wage or rent support under the THRP

Through the THRP, whether you are considered a qualifying tourism or hospitality entity or you were subject to a qualifying public health restriction or a qualifying partial (capacity-limiting) public health restriction, you may be able to get a subsidy to help cover wages (formerly the Canada Emergency Wage Subsidy) and rent (formerly the Canada Emergency Rent Subsidy).

Wage and hiring

How and when you can apply for a wage or hiring subsidy, and what happens after you've applied

COVID-19 wage and hiring support for businesses

Calculate your wage or hiring subsidy

Applying for the THRP or other wage subsidy

Rent and property

How and when you can apply for a rent subsidy, and what happens after you've applied

COVID-19 rent and property support for businesses

Calculate your rent subsidy

Applying for the THRP or other rent subsidy

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