Canadian businesses are seeing a bounce back in the Prince Edward Island (P.E.I.) tourism sector after the COVID-19 pandemic, resulting in many local hospitality businesses needing to undergo preparations for this increase in interest. The P.E.I. provincial government has introduced the Tourism Seasonal Extension Program to help these businesses undergo the renovations necessary to help them ramp pack up for their peak tourism season in 2023.
The Prince Edward Island (P.E.I.) provincial government is investing up to $1,500,000 into the Tourism Seasonal Extension Program over the course of 2023.
This new funding program will help the tourism industry recover from the fallout of the COVID-19 sector, and welcome new tourists traveling to Prince Edward Island.
Program Snapshot: Tourism Seasonal Extension Program
This cost sharing program is exclusive to tourism businesses located within Prince Edward Island.
- The Tourism Seasonal Extension Program offers up to 50% of eligible project costs between $2,500 – $50,000 depending on the project that is being awarded funding.
- The amount of funding provided to eligible projects will be based on the following formula:
- Minimum capital expenses of $5,000;
- Up to 50% of eligible capital expenses;
- Maximum amount of eligible capital expenses will be calculated as 4% of 2019 gross revenues (to a limit of $50,000). Tourism businesses established after 2019, will be reviewed on a case-by-case basis to determine maximum amount for eligible capital expenses; and
- Minimum – for those applicants whose gross revenue is greater than $25,000 and less than $125,000 the program allows the applicant to increase “eligible expenses” beyond 4% of 2019 gross revenues to be eligible to receive up to $2,500 in a grant.
Example of Eligible Business Expense
To show an example of how eligible businesses can receive funding through the Tourism Seasonal Extension Program, the program provides the following example for a project that could receive funding:
A business wants to winterize their four (4) cottages so they can operate in the winter. Here is an example of how to calculate the maximum eligible amount under this program:
- 2019 gross revenue = $400,000;
- Eligible capital expenses calculated at 4% of the above amount = $16,000; and
- Allowed to claim up to 50% of the eligible amount = $8,000 allowable from the Tourism Seasonal Extension Program fund.
In this example, if the business incurred only $14,000 in capital expenses for this project, they would qualify for a $7,000 grant.
This new program will provide assistance to tourism operators that are committed to extending their operating season or expanding their operation and meet the following eligibility requirements:
- Have not previously been open on a multi-season basis or is introducing a new product that will be offered outside of their traditional peak operating season or expanding their operation (i.e. winterizing units to expand the season);
- Physical tourism operations must be located on PEI;
- Business must provide a current and active PEI Business Registration number and hold an appropriate license to operate; and
- Must be a for-profit tourism operation operating within one of the following sectors:
- Tourism establishment as licensed under the Tourism Industry Act such as hotel, motel, bed and breakfast, inn, resort, cottage operation or campground;
- Establishment must be used for business activity and not, whole or in part, for primary residential purposes;
- For a cottage operation, the owner must have more than one cottage unit;
- For a bed & breakfast, where the owner resides to assist with operations and has a minimum of at least 4 guest bedrooms with private bathrooms that are assigned to the exclusive use of a guest or party of guests and hospitality is provided by the tourism operator.
- Food and beverage service (e.g. restaurant, bar, brewery);
- Locally-owned retail and gift shops that cater primarily to tourism;
- Tourism experience providers;
- Adventure and attractions (e.g., kayaking, amusement park,); and/or
- Tour operators.
- Applicants must provide a detailed budget for the project including identifying all expenses and all revenue sources. A Receipt Tracking Submission Form will be provided to successful applicants that must be used for submitting final project claims; and
- Applicants must have a minimum of $5,000 in eligible capital project expenses.
- All non-Canadian or publicly traded companies or company owned by the same are excluded; and
- Corporate-run operations of a franchise network with establishments located outside of PEI are excluded.
Any transaction must be completed between two parties operating at arm’s length.
- New product offerings and expenses such as additional maintenance required to be open on a multi-season basis (regular maintenance expenses not eligible);
- New equipment and new technology for existing product offerings;
- Infrastructure to support seasonal extension such as insulation of buildings, indoor/outdoor heaters, outdoor dining domes, or other infrastructure projects as approved.
Claims must be supported by invoice and proof of payment.
Apply for the Tourism Seasonal Extension Program
This program is accepting applications until funding has been exhausted. Eligible expenditures must be incurred between January 19, 2023 and on/before November 30, 2023. We strongly recommend applying for the Tourism Seasonal Extension Program with a professional grant application writing team to find out if your business is eligible for funding through this program, as well as other grants, wage subsidies, and loan programs your business may be eligible for.
To find provincial and federal funding programs your Prince Edward Island business may be eligible for, download our free Canadian Business Funding Guide PDF for a guide on finding potential funding programs.