Canada Economic Development

Canada Economic Development

November 28, 2011 15:30 ET

Government of Canada Lends Financial Support to Hotel 1212 Modernization Project

DÉGELIS, QUEBEC--(Marketwire - Nov. 28, 2011) - The Honourable Denis Lebel, Minister of Transport, Infrastructure and Communities and Minister of the Economic Development Agency of Canada for the Regions of Quebec, announces that Hôtel 1212 has been granted financial assistance to expand and modernize its facilities in time for the 2012 opening of Parc national du Lac-Témiscouata.

"The Government of Canada decided to invest in this Hôtel 1212 project because it will help improve the supply of tourist accommodations in the Témiscouata RCM and generate considerable spinoffs for the local economy, which depends on the forest industry" said Minister Lebel.

Hôtel 1212, which opened 26 years ago in Dégelis, has earned a solid reputation for the quality of its services. Strategically located by the border between New Brunswick and the United States, the hotel serves a large clientele. Its project involves building 24 new rooms to double the facility's lodging capacity, renovating the common areas and setting up a multi-use hall. Once the upgrade has been completed, Hôtel 1212 will be the only four-star establishment in the Témiscouata Regional County Municipality and better positioned to encourage visitors to discover Bas-Saint-Laurent and extend their stay in the region. Tourism is a key vector of economic development for the region.

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This $905,000 repayable contribution has been granted through the Temporary Initiative for the Strengthening of Quebec's Forest Economies (TISQFE). The TISQFE was brought into force in June 2010 to help communities affected by the forestry crisis diversify their economies in order to ensure their growth and create and maintain employment. The initiative's goal is also to support small and medium-sized businesses in these communities in their efforts to secure their viability and sustainable development.

This past July 14, the Government of Canada announced its intention to allocate a further $20 million in funding over two years to support the Quebec silvicultural sector for the years 2011 and 2012.

This measure is one of several put in place by the Government of Canada in the past months to counteract the effects of the forest crisis. Others include, for example, the Community Adjustment Fund, with its $1 billion budget over two years to mitigate the impacts of the crisis, the $1 billion granted to the Pulp and Paper Green Transformation Program to help enterprises carry out environmentally-friendly projects and the $230 million invested, in collaboration with the Government of Quebec, for silvicultural work and the restoration of bridges and culverts on multi-use forest roads. Workers have also received their fair share of support, with the Government of Canada introducing some of the most generous measures in history to help them through the economic crisis.

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