Tourism drives economic development and diversification in many regions and communities across Canada. Delivered by Canada’s regional development agencies, the Tourism Growth Program (TGP) provides $108 million over 3 years to support Indigenous and non-Indigenous communities, small and medium-sized businesses and not-for-profit organizations in developing local tourism products and experiences. The program also complements supports for the tourism industry provided through other federal, provincial and territorial programs.
The TGP contributes to the Federal Tourism Growth Strategy, which charts a course for long-term growth, investment, and stability in Canada’s tourism industry, from coast to coast to coast.
Indigenous applicants
Indigenous tourism is vital to the economic development and growth of Canada’s tourism industry and is a priority under the TGP . Through the $108 million TGP , approximately 15% will support Indigenous-led tourism initiatives. Indigenous applicants are invited to apply through the process.
On this page
- Eligible Applicants
- Eligible Activities
- Eligible Costs
- Ineligible Costs
- Funding Conditions
- Other Considerations
- How to Apply
Eligible applicants
Eligible applicants include those operating in the tourism industry and are:
- Incorporated small and medium-sized enterprises (SMEs);
- Incorporated not-for-profit organizations;
- Indigenous (First Nation/Métis/Inuit) communities and organizations; and
- Municipalities and municipal organizations.
Eligible activities
Eligible projects should provide added value to existing activities in the tourism industry and focus on business and economic growth. Priority may be given to projects that:
- increase tourism benefits for communities by driving visitation from urban centres to rural areas.
- support the Indigenous tourism industry.
- support economic, environmental and cultural sustainability.
- support active outdoor experiences (projects that provide more opportunities for physically active tourism offerings such as rock-climbing, cycling/hiking trail development, etc.).
- extend the tourism season (projects which support development and growth of products, services or experiences, with an aim to increase tourism activity outside the traditional high season or to extend their services year-round).
Eligible projects must provide incremental value (i.e., incremental improvements to the client’s existing activities).
If you are a tourism business, examples of project activities could include:
- improving/creating new or innovative tourism offerings or products.
- investing in digitization or technology integration to enhance your productivity, sustainability, efficiency and/or competitiveness.
- developing and delivering new products, services or experiences to increase tourism activity outside of the traditional high season or to extend services year-round.
- enhancing accessibility, creating a welcoming environment for diverse clientele.
If you are a not-for-profit tourism organization, examples of project activities could include:
- developing/implementing sustainable tourism plans in the community you serve based on research and market analysis.
- improving local assets, facilities, and/or planning for key active outdoor tourism experiences (e.g., projects that provide more opportunities for physically active tourism offerings).
- facilitating the growth of off-season tourism (e.g., promoting tourism products, services and experiences outside of the traditional high-season, supporting the expansion of seasonal tourism to year-round service).
- supporting the delivery of local community festivals and events that attract tourists to a destination.
- developing/increasing capacity for tourism businesses to provide inclusive tourism experience.
Eligible costs
Eligible costs include all expenses directly related to the project and deemed reasonable and necessary for its execution.
Non-capital costs may include:
- costs incurred in designing new or improved tourism products and services.
- marketing costs (e.g. design, promotional materials, digital media content, products demonstrations, participation at trade shows) are eligible in the case that they are associated with a larger project that is not solely marketing.
- professional services (project implementation, design and engineering services).
- costs related to community engagement and planning such as facilitation and rental of meeting space.
- acquisition of new technology that will improve performance and productivity.
Capital costs may include:
- infrastructure such as the cost of constructing or expanding buildings, trail development, and leasehold improvements, etc.
- purchase and/or rental of machinery and equipment directly related to the authorized project.
Costs may be eligible on a retroactive basis for a 12-month period prior to the receipt of a funding application, but no earlier than March 29, 2023.
Ineligible costs
Certain activities and costs will not be considered eligible, including:
- infrastructure related to retail, wholesale, restaurants, chain hotel and administrative facilities;
- refinancing of an existing debt;
- the purchase of any assets for more than the fair market value of the said asset
- costs of amortization;
- land and building acquisition;
- motor vehicles that can be licensed for off-site use; and
- goodwill.
Funding Conditions
Contributions to for-profit organizations will normally be:
- repayable;
- up to a maximum of $250,000 per recipient; and
- eligible for reimbursement up to 50% of capital costs and 75% for non-capital costs, inclusive of all government funding (federal, provincial and municipal).
Contributions to an Indigenous-controlled business, where the recipient is able to demonstrate that the benefits of the proposed project will accrue broadly, will normally be non-repayable.
Contributions not-for-profit organizations will normally be:
- non-repayable;
- up to a maximum of $250,000 per recipient;
- eligible for up to 50% of capital costs and 75% for non-capital costs for commercial projects, and up to 100% of eligible costs for non-commercial projects; and
- all government funding (federal, provincial and municipal) for a project cannot exceed 100% of eligible costs.
The actual contribution amount will be based on the minimum amount required to carry out the project.
Terms of repayment, if applicable, will be determined during the development of the contribution agreement and will normally begin no later than one year following the completion of the project.
Other Considerations
To be considered eligible, project benefits must accrue to Northern Ontario.
All eligible applicants must be legal entities capable of entering into legally binding agreements.
Completing an application does not guarantee funding approval. All applications will be assessed as they are received. This will include a review of the business case and financial projections, the applicant’s past results, and the identification of any issues that may impact the project’s success. Approval may also depend upon funding availability.
How to Apply
Please call 1-877-333-6673 to discuss your proposal with a FedNor Officer in your area or begin your application process.
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