Apply for the Tourism Activation Grant

The intent of the Tourism Activation Grant program is to provide tourism businesses with a non-repayable financial contribution toward eligible expenses to assist with capital and/or maintenance costs associated with opening for the 2022 season.

This program is intended to support investments that will help your tourism businesses adapt to a new normal and position you to capitalize on future economic recovery.

Program Overview

The Tourism Activation Grant will provide assistance to PEI tourism businesses in amounts from $2,500 to $50,000. The program will be administered through a partnership between Tourism PEI and the following Community Business Development Corporations (CBDCs):

  • West Prince Ventures Limited
  • East Prince Development Inc.
  • Active Communities Inc.

Program Budget

The total obligation of the Government of Prince Edward Island under the Tourism Activation Grant will not exceed one million, five hundred thousand dollars ($1.5 million). 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 $1.5 million. 

Who is eligible?

The eligibility of a PEI tourism business is based on criteria consistent with the Tourism Interest Relief Program and the Tourism Assistance Loan Program, including:

  • must demonstrate a minimum 30% decrease in tourism-related revenues for 2021 compared to 2019;
  • must have at least $25,000 in gross revenues for 2019;
    • the applicant is responsible to provide proof of previous year’s revenue in all cases.
    • if a business is new and does not have historical revenues available, eligibility maybe determined on a case-by-case basis comparing historical data of the specific operation or an industry average.
  • the physical tourism operation and head office must both be located on PEI; 
  • must be registered and hold an appropriate licence to operate prior to April 1, 2020;
  • must be a ‘for-profit entity’ operating in one of the following sectors:

    • Accommodation operators - establishment must have more than one accommodation unit licensed under the Tourism Industry Act (e.g operator or establishment with more than one cottage is eligible)

      • Licensed tourism accommodations (e.g. hotel, motel, bed and breakfast, inn, resort, cottage operations and campground)

      • Licensed tourism accommodations must be used for business activity and not, whole or in part, for primary residential purposes

      • Licensed tourism accommodations where the owner resides to assist with operations must have a minimum of at least 4 guest bedrooms with private bathrooms assigned to the exclusive use of a guest or party of guests and hospitality provided by the tourism operator

    • food and beverage service (e.g. restaurant, bar, brewery);

    • local artisans and artists (e.g. pottery, artwork);

    • locally-owned retail and gift shops that cater primarily to tourism;

    • attractions (e.g. museum);

    • tourism service and/or experience providers;

    • event companies;

    • adventure (e.g., kayaking, amusement park, golf); and/or

    • tour operators.

Maximum grant to a business or group of businesses controlled by a common shareholder is $50,000.

Who is not eligible?

  1. A non-Canadian or publicly traded company, or a company owned by the same, is not eligible.
  2. Any corporate operation of a franchise network with an establishment(s) located outside of PEI is not eligible.

What are eligible expenses?

As an operator, you may normally make significant investments in your property during the off-season to ensure guests are provided with a quality and aesthetically pleasing experience.

Eligible expenses under this program must be incurred on or after February 07, 2022 and end on or before July 1, 2022 and may include, but are not limited to, the following:

  • new product or experience development;
  • routine maintenance;
  • new equipment and/or technology;
  • improved furnishings.
  1. Any transaction must be completed between two parties operating at arm’s length.
  2. Claims must be supported by paid invoice.
  3. Assistance will be based on the following formula:
    • grant will cover up to 50% of eligible expenses
    • maximum amount of eligible expenses will be calculated as 4% of 2019 gross revenue
    • maximum grant will be $50,000
    • minimum - is your gross revenue greater than $25,000 but less than $125,000? If yes, you may increase your eligible expenses beyond 4% of your 2019 gross revenue to be eligible for up to $2,500 in grant.

Example of eligible business expense

You want to put new siding on your eight (8) cottages. Here is an example of how to calculate the maximum eligible amount under this program:

  • 2019 gross revenue = $400,000
  • eligible expenses calculated at 4% of above amount = $16,000
  • allowed to claim up to 50% of the eligible amount = $8,000 allowable Tourism Activation Grant funding

In this situation, if you incurred only $14,000 in expenses for this project, you would qualify for a $7,000 grant.

There is no guarantee that funding will be available for all applicants, or that the total amount requested will be granted. The decision to fund all, or part, of any request depends on fit with program intent, eligibility and demand for program funds.

Apply with your local CBDC

Select ONE link below based on the location of your business. You must register for a CBDC account before you apply if you do not already have one.

West Prince Ventures Ltd.

Apply online

Phone: 902-853-3636

Central PEI CBDC

Apply online

Phone: 902-888-3793


Apply online

Phone: 902-838-4030

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Economic Growth, Tourism and Culture

General Inquiries

Department of Economic Growth, Tourism and Culture
3rd Floor North, Shaw Building
105 Rochford Street
PO Box 2000
Charlottetown, PE C1A 7N8

Phone: 902-368-5540
Fax: 902-894-0342