A step in the right direction to avoid structural disruptions in the tourism industry
QUÉBEC CITY, Nov. 6, 2020 /CNW Telbec/ -The Conférence économique de l'industrie touristique québécoise welcomes the introduction of Bill C-9 by the Honourable Chrystia Freeland, Deputy Prime Minister and Finance Minister of Canada, which will enact new, targeted support for businesses. The Conférence is particularly satisfied to see that the new Canada Emergency Rent Subsidy will now include financial support for several categories of fixed costs including rents, property and school taxes, as well as mortgage interests for businesses that own their place of business.
Without government support, tourism industry businesses in the hospitality, attraction and festival and events sectors won't be able to survive until next summer. "I know very few businesses that can survive 15 months with sales ranging between 5% and 25% of normal levels," said Mr Raymond Bachand, strategic counsel and president of the Conférence.
In recent weeks, the Conférence held several meetings with the federal government in order to represent the tourism sector's specific needs and recommendations. While the new legislation is available to all Canadian businesses, the tourism sector, which is part of the 5% of the Canadian economy that has not recovered, needs specific sector-targeted support. The Conférence is happy to note that Deputy Prime Minister Freeland once again mentioned that targeted support for the sector was on the horizon, when she spoke at the Chamber of Commerce of Metropolitan Montreal on October 30th.
Targeted support needed for the tourism sector
The short 2020 summer season was not enough to compensate losses due to the absence of international, business, sports and school travel, and as such, it did not allow businesses to put together sufficient reserves to make it through the winter. Meanwhile, the fall tourism season has been practically nonexistent. "The Government of Canada's new measures are a step in the right direction, to address the representations we've made over the last few weeks. However, the fight against the economic impacts of the pandemic is far from over and we are counting on the governments of Québec and Canada to offer specific support for the tourism industry. By addressing the specific needs of this major element of the Québec economy, we can avoid serious potential damage to one of the country's main export sectors," added Mr Bachand.
"The tourism industry is greatly concerned with potential massive losses of key employees and expertise, at a time when the industry is already dealing with significant labour shortage challenges. More than ever, the tourism industry is at high risk of facing deep structural dislocations that could create permanent damage serious enough to compromise any efforts of recovery. This is why it is urgent for the sector to get support programs adapted to its reality, in order to maintain a level of structural integrity and minimal commercial offerings in one of Canada's main economic sectors," concluded Mr Bachand.
About the Conférence économique de l'industrie touristique québécoise
The Conférence is a committee of business leaders with a deep understanding of regional and industry challenges, and of the realities that large and small businesses face within the tourism sector. Together, they bring a substantial experience of the Québec tourism sector and complementary skills from their own individual areas of expertise. Based on data, industry insight and economic analysis, the Conférence's role is to generate dialogue about the main issues identified by Québec tourism associations and businesses, notably the state of the business environment and the impact of public policy on the industry; to analyse success factors that will help improve it and; to recommend the best strategies that can maximize windfall for Québec in its entirety.
SOURCE Conférence économique de l’industrie touristique québécoise
Anna Luu Nguyen, [email protected], 514.824.2842
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