September 30th, 2020

The Government of Newfoundland and Labrador released the 2020 budget today at the House of Assembly, and Hospitality NL was on hand to learn of the details prior to the Budget Speech.

Budget highlights and commitments of particular relevance to tourism operators include the following:

Living with COVID-19

• For small businesses and community
  organizations, a $30 million COVID-19
  Small Business Assistance Program is being
  introduced. It will be retroactive and help offset
  expenses and innovation incurred due to the
  pandemic. (Hospitality NL’s understanding is that this is not stackable with Tourism and Hospitality Support Program)

Business and Sector Development

• Almost $17 million for research and
  development, commercialization and business
  development.
• Almost $10 million for regional and sectoral
  economic development initiatives.
• $8.5 million to support investment attraction.

Tourism, Arts and Culture

• Almost $13 million for tourism marketing.
  Eligibility under the Tourism and Hospitality
  Support Program will be expanded to include
  our professional artists and musicians that have
  been impacted by COVID-19.
• $4 million to support film and television
  production.
• $3.45 million for the Cultural Economic
  Development Program.
• $1 million in additional funding for ArtsNL,
  which brings the annual provincial investment
  to more than $3.9 million.
• Craft brewers will benefit from $1 million in discounts.

Transportation

• Budget 2020 allocates more than $190 million in
  investments to improve the transportation network
  in Newfoundland and Labrador:
  • More than $165 million for provincial highways
    and bridges, including $39.8 million for the
    Trans-Labrador Highway.
  • $15 million for marine infrastructure.
  • $4.6 million to replace heavy equipment for
    winter highway maintenance.
  • $2 million for brush clearing along provincial
    highways.
  • $400,000 to complete an engineering study on
    the scope and replacement costs of the wharf in
    Lewisporte to help inform future infrastructure
    investments.
  • $200,000 for a pre-feasibility study for a
    road to the north, which could potentially link
    northern communities to the rest of Labrador.

Taxation

• No increase in personal or corporate business tax

There are over 2,700 tourism-related businesses, with 9% of all jobs in the province relating to tourism industries. Tourism spending normally generates over $1.1 billion annually. Through the public-private partnership of the NL Tourism Board – Hospitality NL and industry partners continue to work together, with a focus on alignment and collaboration. As the provincial tourism industry association, Hospitality Newfoundland and Labrador is committed to working collaboratively with all tourism stakeholders to grow tourism and drive the industry to produce a brighter, more sustainable future.

Hospitality Newfoundland and Labrador continues to analyze Budget 2020, seeking specific details and clarity on measures impacting tourism operators. For further information, please contact Hospitality NL’s Manager of Advocacy and Communications, Shanelle Clowe at sclowe@hnl.ca.