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Post-pandemic recovery road painful for tourism industry in B.C. and Canada

Bounceback is happening but not without struggles, particularly in more remote regions
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Tourism has come roaring back from pandemic lows, but operators say the sector has yet to reach pre-pandemic levels and debt remains a hefty burden for thousands of small businesses across the country. Unofficially named 91裸聊视频淭he First Sidewalk91裸聊视频 a 700-foot walking trail system to promote eco-tourism is shown in Bella Bella, B.C., on Tuesday, Oct. 25, 2022. THE CANADIAN PRESS/Chad Hipolito

Maureen Gordon has weathered hard times before.

She and her husband began running ecotourism outfit Maple Leaf Adventures out of Vancouver about a month before the 9/11 terrorist attacks devastated international travel in 2001.

The rebound was relatively quick. Fallout from COVID-19 has proven much more prolonged.

91裸聊视频淭he pandemic of course was incredibly tumultuous and scary, as it was, I think, for most tour businesses in Canada,91裸聊视频 said Gordon, who runs week-long sojourns on a schooner, converted tug boat and catamaran along the Pacific coast.

91裸聊视频淚t was a really traumatic time. We couldn91裸聊视频檛 operate at all through various government shutdowns,91裸聊视频 she recalled. 91裸聊视频淲e were scared, our bank was scared.91裸聊视频

While 2022 was 91裸聊视频渋ncredible,91裸聊视频 as Canadians looking to expend pent-up energy surged back to domestic travel, 2023 saw a 91裸聊视频渉iccup91裸聊视频 amid rising interest rates that dampened some sojourners91裸聊视频 spirits.

91裸聊视频淎lthough the tourism industry 91裸聊视频 in terms of interest in travel and booking 91裸聊视频 is recovering, the businesses are really hurting,91裸聊视频 Gordon said. 91裸聊视频淚 think all of us are carrying the highest debt loads we91裸聊视频檝e ever had. Certainly we are.

91裸聊视频淲e crossed the ocean out of our wrecked boat, and now 91裸聊视频 we91裸聊视频檙e all just trying not to die on the beach.91裸聊视频

Tourism has come roaring back from pandemic lows, but operators say the sector has yet to reach pre-COVID levels and debt remains a hefty burden for thousands of small businesses across the country.

International visitor numbers remained down from four years earlier, with tourists from the U.S. at 85 per cent of 2019 levels and those from further afield at 78 per cent, according to Crown corporation Destination Canada.

The industry brought in more than $109 billion in revenue last year, about four per cent more than in 2019 but significantly less in real terms after accounting for inflation, according to the Tourism Industry Association of Canada.

Beth Potter, who heads the association, has called on the federal government to create a new low-interest loan program and temporary foreign worker stream, both specific to the tourism industry.

91裸聊视频淲e have not had any kind of indication that we91裸聊视频檙e going to see these,91裸聊视频 she noted. In fact, the government aims to reduce temporary residents91裸聊视频 share of Canada91裸聊视频檚 population over the next three years.

The impact won91裸聊视频檛 be 91裸聊视频渁s extreme91裸聊视频 in tourism as in agriculture or food processing, she said. But it will hit ski resorts as well as tourism-dependent areas such as Northern Canada and Niagara Falls, Ont.

Travel, hospitality and recreation offerings are effectively a perishable commodity, which means it91裸聊视频檚 especially hard to make back lost earnings.

91裸聊视频淚f you don91裸聊视频檛 book the hotel room tonight, you can91裸聊视频檛 book that hotel room two times tomorrow night,91裸聊视频 said Potter.

The sector91裸聊视频檚 recovery continues to trail that of the broader business world. The number of active tourism-linked businesses sat slightly below pre-pandemic levels as of December, while the number of businesses overall surpassed 2019 figures, data from Destination Canada showed.

Across all sectors, two in three small- and medium-sized enterprises still held pandemic debt at the end of last year, with an average of $107,700, according to a Canadian Federation of Independent Business survey of 3,148 members. Out of 14 sectors surveyed, operators in hospitality and transportation were among the most pessimistic about the coming year. Only retail scored worse.

Ski operations and tourist hotspots such as the Okanagan Valley have had a particularly rough year.

91裸聊视频淲e had winters that weren91裸聊视频檛 winters for us,91裸聊视频 said Tourism Minister Soraya Martinez Ferrada in a phone interview.

91裸聊视频淲e were really impacted last year with climate change in terms, fire, drought, floods,91裸聊视频 she continued. 91裸聊视频淧eople were actually cancelling their travels to Canada because they were thinking that the whole country was on fire. Remember the smoke in New York?91裸聊视频

While some tourism statistics for Canada91裸聊视频檚 four largest cities 91裸聊视频 Toronto, Montreal, Vancouver and Calgary 91裸聊视频 are now on track to overtake 2019 numbers, farther-flung parts of the country continue to struggle.

91裸聊视频淩egions a bit further away from those very big hubs had more difficulty to regain the momentum,91裸聊视频 the minister said. Business travel and conventions also continue to lag, she added.

Regional transport has failed to bounce back as well, with domestic seat capacity at 84 per cent of 2019 levels as of the fourth quarter of 2023, according to Destination Canada. That can dent domestic travel and leisure markets.

91裸聊视频淚f people want to go between Prince Edward Island and Newfoundland in the wintertime, when the ferry is not running, you91裸聊视频檇 have to fly to Toronto,91裸聊视频 said Potter, pointing to the deterrent.

The minister cited pledges laid out in the federal budget to support tourism. The government has vowed to provide new funding to replace Via Rail91裸聊视频檚 aging fleet on routes outside the corridor running between Quebec City and Windsor, Ont. 91裸聊视频 an amount has not yet been specified due to an upcoming procurement process.

Martinez Ferrada also highlighted $124 million for Atlantic ferry operations as well as investments in development opportunities in the North and for Indigenous tourism operations announced last year.

While no new sector-specific loans are on the horizon, she framed the $2.5 billion in carbon rebates slated to land in small- and medium-sized businesses91裸聊视频 bank accounts in the coming months as a financial buoy.

Back in Vancouver, Gordon said the year looks promising, with some caveats.

91裸聊视频淢ost people aren91裸聊视频檛 100 per cent confident in their projections,91裸聊视频 she said. 91裸聊视频淚t91裸聊视频檚 not a straight-line recovery 91裸聊视频 We all feel that the market is really unpredictable right now.

91裸聊视频淧eople in our industry are pretty passionate about what they do and pretty determined. It91裸聊视频檚 not a doom-and-gloom story,91裸聊视频 she reflected.

91裸聊视频淏ut it is a story of huge struggle 91裸聊视频 and maybe some of it91裸聊视频檚 unnecessary struggle 91裸聊视频 and burden on a key industry that brings so much benefit to Canada and promotes our brand in the world.91裸聊视频

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