Saturday,  July 2, 2022  12:20 am

Operation Survival: ACTA launches new campaign as gov't subsidies taper off soon

  • Buzz
  •   05-26-2021  6:25 am
  •   Pax Global Media

Operation Survival: ACTA launches new campaign as gov't subsidies taper off soon
Wendy Paradis, president of ACTA. (Pax Global Media/file photo)
Pax Global Media

About 800 storefront travel agencies across Canada have closed permanently, says the Association of Canadian Travel Agencies (ACTA), and most of the industry’s travel agencies and travel agents are still seeing a revenue decline of 95 per cent.

With more than 90 per cent of travel agents still on the CRB or EI aid programs, ACTA is launching a new campaign called Operation Survival – and it’s asking everyone to get involved.

“Government subsidies start to taper off this summer and will end by September if the industry’s cry for sector specific aid is not heard,” said Wendy Paradis, ACTA President on Wednesday (May 26). “This will have tragic consequences for our industry and we must all bring this to the attention of the government now.”

ACTA Vice President Heather Craig-Peddie has created a compelling video appealing to the industry to get on board with this campaign. Watch it here. 

ACTA has also created three letter templates for travel agency owners, travel agent employees and independent travel agents to customize with their own stories and send to their MPs urgently.

They are also asking everyone to then follow up by phoning their MP, discuss their situation and urge the MP to speak up in the House of Commons and ask that financial support programs be extended until the end of 2021.

Cutbacks to aid begin in July

“The cutbacks in federal aid programs scheduled to begin in July, while there are still no government issued measures, metrics and plan for the restart of travel, will reduce CRB for independent travel agents and force employers to lay-off more employees at a time when travel agents are needed to process government-mandated consumer refunds,” said Paradis.

Commission protection gaps

While Ministers Chrystia Freeland and Omar Alghabra made it clear that among other conditions of aid to airlines that travel agent commission would not be recalled for COVID-19 related cancellations, the industry has identified five areas where commissions are not protected.

“These are monies that were earned in 2019 and early 2020, and used to pay fixed expenses. Travel agencies and travel agents simply no longer have this money to refund consumers,” said Paradis.

ACTA is asking for the following sector specific aid:

  • CEWS/CERS/EI/CRB/CRHP – Extend and expand at maximum support to the end of 2021, and 90 days after travel restrictions are eased, including the new Canada Recovery Hiring Program (CRHP).
  • Ensure all Commissions are Protected – Work with ACTA and the industry on the gaps and fully protect travel agent commissions for mandated refunds through grant programs.
  • Liquidity Programs (CEBA, RRRF, HASCAP) – Enhance the CEBA loan, extend the repayment terms of CEBA so that the forgivable portion can be made possible and expand the forgivable portion, extend all loan application deadlines to the end of 2021, and expand the accessibility to sole proprietors.
  • Roadmap to Recovery – Work with the travel and tourism industry to develop a data-driven plan to restart travel.

In ACTA’s meetings with government since the April budget was announced, its key message has been “you have invested in travel agents and travel agencies for the past 15 months, don’t give up on us now, when recovery is within sight,” said Paradis. 

“With vaccine rollout, bookings have already started for late 2021 and 2022, and momentum is expected to build as Canadians receive their second vaccine dose.”

Go to ACTA’s website to get started. 

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