Tourism - Seasonal Extension Program
The program is intended to support capital investments that will help tourism businesses remain open on a multi-season basis and drive economic activity across PEI in historically lower demand periods.
The purpose of the program is to provide tourism businesses with a non-repayable financial contribution (grant) toward eligible capital expenses to assist with seasonal extension.
The new Tourism – Seasonal Extension Program will provide assistance to PEI tourism businesses and will be administered through a joint partnership of Tourism PEI and the Community Business Development Corporations (CBDCs), including:
- CBDC Western PEI
- CBDC Central PEI
- CBDC PEI East
The total obligation of the Government of Prince Edward Island under the Tourism-Seasonal Extension Program will not exceed $1,500,000.
The Government of Prince Edward Island reserves the right to pro-rate payments at any point during the program period should the total claims from operators exceed $1,500,000.
Eligibility requirements are:
- This new program will provide assistance for tourism operators that meet the eligibility requirements and are committed to extending their operating season or expanding their operation.
- Assistance will be given to operators who have not previously been open on a multi-season basis or an operator introducing a new product that will be offered outside of their traditional peak operating season or expanding their operation (i.e. an accommodation operator winterizing their units to expand the season).
- The physical tourism operation must be located on PEI.
- All non-Canadian or publicly traded companies or company owned by the same are excluded from this program. Additionally, corporate run operations of a franchise network with establishments located outside of PEI are excluded from this program.
- The business must provide a current and active PEI Business Registration number and hold an appropriate license to operate.
- Eligible applicants 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, campgrounds;
- The 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.
- Applicants must have a minimum of $5,000 in eligible capital project expenses.
Level of Assistance:
- The minimum level of assistance eligible under this program for a business or group of businesses controlled by a common shareholder is $2,500.
- The maximum level of assistance eligible under this program for a business or group of businesses controlled by a common shareholder is limited to $50,000.
- Project expenses that are eligible for funding through other provincial programs are not eligible. For example, if an operator is winterizing their cottages and purchasing heat pumps, the cost of the heat pumps will not be considered an eligible capital expense, as there are existing funding programs offered to support that specific investment.
Eligible Capital Expenses:
Preparing to grow and expand a tourism business to be open on a multi-season basis requires operators to invest in their operations ensuring they are best positioned for success.
- This program will provide assistance for tourism operators that meet the eligibility requirements and are committed to extending their operating season or expanding their operation. Eligible capital expenses may include new product offerings and expenses such as additional maintenance required to be able to open on a multi-season basis, new equipment, and new technology for existing product offerings.
- Eligible capital expenses under this program may also include infrastructure to support seasonal extension such as insulation of buildings, indoor/outdoor heaters, outdoor dining domes, or other infrastructure projects as approved.
- All applicants must demonstrate how the expenditures will support expanding their product offering and/or their operating season. Regular maintenance expenses are not eligible.
- Eligible capital expenditures must be incurred from the date the program was announced to on or before November 30th, 2023.
- Any transaction must be completed between two parties operating at arm’s length.
- Claims must be supported by invoice and proof of payment.
- Assistance will be based on the following formula:
- Minimum capital expenses of $5,000
- Grant will cover up to 50% of eligible capital expenses
- The maximum amount of eligible capital expenses will be calculated as 4% of 2019 gross revenues
- Tourism businesses established after 2019, will be reviewed on a case-by-case basis to determine their maximum amount of eligible capital expenses
- Maximum grant will be $50,000
- Minimum - for those applicants whose gross revenue is greater than $25,000 and less than $125,000 the program allows for the applicant to increase their “eligible expenses” beyond 4% of their 2019 gross revenues to be eligible to receive up to $2,500 in grant.
Example of eligible business expense
You want to winterize your four (4) cottages so that you 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
- allowed to claim up to 50% of the eligible amount = $8,000 allowable from the Tourism – Seasonal Extension Program fund.
In this example, if you incurred only $14,000 in capital expenses for this project, you would qualify for a $7,000 grant.
The government cannot guarantee funding to all applicants, nor can the government ensure that the total amount requested by the successful applicant will be granted.
The decision to fund all or part of an applicant’s request will depend on its fit with the program intent and eligibility criteria, as well as the overall demand for the program funds.
The CBDCs are the delivery agents for this program and all final decisions are those of Tourism PEI.