Sask. government pledges $35M to aid struggling tourism industry

Saskatchewan hotels and event organizers trying to stay afloat during the pandemic will soon be able to apply for financial support from the provincial government under its Saskatchewan Tourism Sector Support Program (STSSP).

The province pledged $35 million Monday to help Saskatchewan's tourism sector.

Saskatchewan's Tourism Minister Gene Makowsky said in a news conference on Monday that the money will help the sector recover from setbacks and build resiliency.

"As a result of COVID-19, operators, attractions and events across Saskatchewan have endured a travel season like never before."

Under the STSSP, eligible hospitality and event/attraction operators can apply for a one-time non-repayable emergency payment starting at 2 p.m. CST on Aug. 24.

Up to $50,000 for hotels and large event facilities

Businesses in the accommodation sector and large event facilities might receive payments from $10,000 to $50,000 depending on sales revenue, according to the government. Operators of attractions, tours or events who have to deal with ongoing fixed costs might receive payments from $7,500 to $15,000.

Non-profits and event hosting organizations, such as Saskatoon's Remai Modern or the Saskatchewan Jazz Festival, are also eligible to apply.

"It also applies to outfitters for example who have been ... severely impeded because of the closure of the U.S. border where a big part of their traffic is dependent on American hunters," said Trade and Export Development Minister Jeremy Harrison

The province said $5 million of the $35 million is flagged for marketing.

Potential decline of $730 million in visitor spending

Harrison said the recovery of the tourism sector might take years and that the program probably won't be able tosave everybody.

"Our intention is to provide ... sufficient support such that operators who are really struggling are able to get to that point where they can recover," Harrison said.

On Sunday,Saskatoon's German Cultural Centre announced its closure. The centre said in a news release that the restriction on the number of people allowed in the building has made it impossible to remain open.

"It's the uncertainty I think that causes the greatest amount of anxiety," said Saskatchewan Hotel and Hospitality Association president and CEO Jim Bence.

The province said it counted 12 million visits to and within Saskatchewan last year, with visitor expenditures adding up to $2.2 billion. According to the government more than 71,000 people, or more than 12 per cent of Saskatchewan's working population, were employed in the tourism industry last year.

Around 4,200 tourism-related businesses operate in Saskatchewan, Harrison said, with 95 per cent of them being either small or medium sized companies. Tourism businesses generate revenue all across the province, with more than half of provincial tourism expenditures coming from outside of Saskatoon or Regina, he said.

"This support will go so far," said Bence.

The government estimates the tourism industry could see a decline of at least $730 million in visitor spending in 2020-21 because of the pandemic.

"I think that this [STSSP's $35 million] is the beginning of the conversations," said Bence.

"This is really, I think, meant to get some people closer to shore, as we're all swimming like crazy to get there."

Staycations

Makowsky said he has been encouraged to see Saskatchewanians exploring their own province.

"This summer has been about road trips to different places and communities in the province and we've heard the term staycations, enjoying what's in our own backyard and supporting local businesses."

Applications for the Saskatchewan Tourism Sector Support Program (STSSP) will be accepted until Oct. 1, 2020.The government expects businesses to receive the money within days of application.