Tourism Seasonal Extension Program
The new Tourism Seasonal Extension Program is intended to support capital investments to help tourism businesses remain open on a multi-season basis and drive economic activity across Prince Edward Island in historically lower-demand periods.
The purpose of the program is to provide PEI tourism businesses with a non-repayable financial contribution (grant) toward eligible capital expenses to assist with seasonal extension. The program will be administered through a joint partnership between Tourism PEI and the Community Business Development Corporations (CBDCs) including:
The total obligation of the Government of Prince Edward Island under the Tourism Seasonal Extension Program will not exceed $1,500,000; at any point, government reserves the right to pro-rate payments should total claims exceed this budget allocation.
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.,
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.
- 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.
- Corporate-run operations of a franchise network with establishments located outside of PEI are excluded.
Level of assistance
Minimum level of assistance eligible for a business or group of businesses controlled by a common shareholder is $2,500; maximum level of assistance for the same 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 cottages and purchasing heat pumps, the cost of 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
Operators who want to successfully grow and expand a tourism business for multi seasons must make investments. Eligible capital expenses may include the following:
- new product offerings and expenses such as additional maintenance required in order 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.
All applicants must demonstrate how expenditures will support expanding their product offering and/or their operating season.
- Eligible capital expenditures must be incurred between the date that the program was announced (January 19, 2023) and on/before February 2, 2024.
- 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
- 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.
- 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
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.
You may now apply online with your nearest CBDC