Hard-hit industries worry federal COVID-19 subsidy extensions aren't enough

Business owners in the tourism and hospitality industries are breathing a sigh of relief after the federal government extended several pandemic support programs into the fall, but some worry the financial aid won't go far enough to help them before the economy reopens.

The federal government announced Friday it is extending the Canada Emergency Wage Subsidy (CEWS) and the Canada Recovery Benefit (CRB) until Oct. 23 because different regions are reopening at different rates.

• Government extends pandemic recovery programs and business supports

John McKay owns and operates Orleans Travel & Cruise Centre in Ottawa. Although he's grateful for the extension, he said financial support is only part of the solution. 

"All my employees are still temporarily laid off, even with the wage subsidy," he said. "I can't afford it."

With non-essential travel on hold for nearly 18 months, McKay said his company is "hanging on by a thread."

"We could be selling a million dollars worth of sales in September, October, November. But if [people are] not traveling till March break, we're waiting until April or May of the following year to be paid."

McKay said the stress of surviving after the subsidy expires is difficult to ignore. In order to stay afloat, he said he's had to take a side job at a courier company and push back his retirement plans by at least a decade. 

"We don't get paid until bums are in seats," he said. "So I have to survive between October 23rd and April 2022."

'We have nothing'

Much like the travel and tourism sector, the entertainment industry has been especially hard hit by the pandemic, with many weddings, corporate events and parties postponed or cancelled. Under Step 3 of Ontario's reopening plan, a maximum of 25 people are allowed at indoor gatherings and public events. 

That's been difficult for Brian Henry's event business in Ottawa, Quality Entertainment.

The company has been in operation for more than 25 years, but has never experienced anything like the past year-and-a-half, and is currently relying on both the government subsidies and a rollover of last year's clients to keep going.

"It's really difficult to go forward," he said. "We have nothing."

He feels any financial aid should be targeted to businesses that have a much tougher road to recovery ahead.

Small businesses still struggling

Jasmin Guenette, vice-president of national affairs with the Canadian Federation of Independent Business, said it's important financial programs like the CEWS and CRB remain available for small businesses until the economy has fully re-opened.

"A lot of businesses are struggling and it's not through any fault of their own. It's because there are these restrictions. We will continue to ask the government to make sure that those programs are available." 

Guenette said only 35 per cent of small businesses across the country are back to their normal sales levels.