Here’s the ‘N2K’ on PREP and STAR

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Minister of Industry, Tourism and Investment Caroline Wawzonek introduced two new programs Monday to help the NWT’s tourism industry deal with the continuing impacts of the COVID-19 pandemic.

GNWT Launches Two New Support Programs for Tourism and Accommodations

If you are a licensed tourism operator or regulated accommodation provider, here’s what you need to know (N2K). 

Eligibility for the PREP

Eligible applicants for the Pandemic Relief Extension Program (PREP) include all licensed tourism operators including sole-proprietors, partnerships, and incorporated companies who meet the following criteria:

  • have a valid tourism operator licence (TOL);
  • have been in operation since April 1, 2020, at a minimum;
  • have not filed for bankruptcy; and
  • are operating, and will continue to operate, at a loss over the period of the program (e.g. to incur ongoing expenses that are higher than incoming revenues) as a direct result of travel restrictions.

Eligibility for the STAR Program

The Supplement for Tourism Accommodation Relief (STAR) Program is available to accommodation providers offering three (3) or more rooms in the NWT including sole-proprietors, partnerships, and incorporated companies, who meet all of the following criteria:
 

  • have been in operation prior to April 1, 2020, and is open to guests and operational during the entire time period for which support is being requested;
  • have not filed for bankruptcy; and,
  • are operating, and will continue to operate at a loss over the period of the program (e.g. to incur ongoing expenses that are higher than incoming revenues) as a direct result of travel restrictions.

What’s Covered?

Eligible costs under the PREP may include but are not limited to:
 

  • Rent/mortgage interest
  • Utilities (heat; electric; water and sewer; phone and internet)
  • Subscriptions (for example, financial or booking systems)
  • Insurance
  • Capital expenditures (e.g. boats, snow machines, vehicles for tourism purposes) purchased before April 1, 2020 and not previously funded through a GNWT or federal program;
  • Other fixed costs as deemed reasonable by ITI

Eligible costs under the STAR Program may include but are not limited to:
 

  • staff costs (e.g. employee wages/expenses, contractors, owner salary, administration, professional development, bookkeeping/accounting);
  • business expenses (e.g. rent, electricity, heating, fuel, phone, water/sewage, maintenance/repairs, banking fees); and,
  • debt servicing (e.g. mortgage, insurance, vehicle insurance/leasing, marketing, consumable suppliers, subscriptions).

Application Process and Deadlines

Application forms and additional program information is available here:

Applications cannot be processed until deemed complete (meaning all required documentation have been provided.)

Applications will be received throughout the year.  The programs will run until March 31, 2022.

How the Payment Process Works

Once an application has been reviewed and an amount deemed eligible by the ITI regional office, you will receive a contribution agreement for review and signature. If you are in agreement with the terms outlined, you will return the signed Agreement to the ITI regional office for finalization by the Regional Superintendent. A signed copy of the contribution agreement will be returned to you indicating the final amount that has been approved for funding as well as reporting requirements.

Payments will be issued in two installments: a first payment upon determination of eligibility and application approval of 75% of eligible costs, and a subsequent payment after the invoices and receipts for the first installment are reviewed.

 

For more information or to apply, please contact the Tourism Development Officer in your region:

Beaufort Delta

E-mail: Tourism_BeaufortDelta@gov.nt.ca

Dehcho

E-mail: Tourism_Dehcho@gov.nt.ca

Sahtu

E-mail: Tourism_Sahtu@gov.nt.ca

North Slave

E-mail: Tourism_NorthSlave@gov.nt.ca

South Slave

E-mail: Tourism_SouthSlave@gov.nt.ca

 

Or click the following links to access the guidelines and forms you need to apply for:

Pandemic Relief Extension Program (PREP)

Supplement for Tourism Accommodation Relief (STAR) Program