Thank you.
Good afternoon and hello to all of the finance committee members.
I represent the Tourism Industry Association of Prince Edward Island, the hardest-hit industry on the island since the onset of this pandemic. Prior to the pandemic, tourism was one of the top three industries on Prince Edward Island, generating an estimated $504.8 million in direct revenues and approximately $145 million in total tax revenues. Leading up to 2020, we enjoyed five consecutive record-breaking seasons, resulting in businesses in our industry reinvesting and expanding their operations.
In 2019, Prince Edward Island welcomed an estimated 1.6 million visitors to our island, which has a humble population just shy of 160,000. The cruise industry set a record, with 128,000 passengers, near equal to our total population, helping to lengthen our traditionally seasonal industry in the spring and fall. In the 2020 season, and again in 2021, cruises ground to a complete halt, going from 128,000 passengers to zero.
The impact this industry has not only on the ports affected but on the supply chain, from transportation providers to small businesses, including retail, restaurants, experiential product and tour companies, is staggering. We have individual family-owned retail businesses sitting on over $1 million in inventory, purchased in advance of the 2020 season and carrying that cost for multiple years. Our main transportation provider, normally employing approximately 500 people, now has 155 individuals working at a much reduced capacity.
In other sectors, we have seen an 80% decline in our accommodations, and some operators, such as the island's only family-run amusement parks, went from 350 staff in 2019 to 198 in 2020 across their four companies. Sales dropped from 60% to 80%, with the two largest amusement parks being down 80%. For one single attraction, this meant going from a profit of $300,000 to a loss of $300,000, even with the subsidies in place.
To put this in further perspective, that $300,000 in revenue would afford this business the ability to pay down approximately $250,000 in debt and to continue to expand their operations. Instead, the pandemic has forced them to now take on an additional $300,000 in loans just to keep the lights on, as opposed to investing in new capital projects.
In addition to the financial impact, amid the uncertainty, companies are losing the workforces that they have spent many years developing. Continued investment by the federal government will be required to support skills development.
While some of our larger businesses have taken on additional loans as a means of survival, many of our smaller operators don't have the capacity to do so. While carrying existing debt from investments in previous years, these businesses can't comfortably take on additional debt without any indication of when they may be able to pay it off. HASCAP, for example, has benefited a small number of businesses on Prince Edward Island, but no matter how low the interest rates or payback terms are, many will not entertain this as a viable option for them.
We recognize how fortunate our island has been in the face of the pandemic, and we were grateful to be open to the Atlantic bubble for the summer of 2020. This, paired with the Canada emergency wage subsidy and other supports, allowed many of our operators to open for the season, albeit at a much reduced capacity and at great financial cost.
As we move towards the 2021 season, our optimism has shifted to the realities of another bleak tourism year. At best, we are preparing for another Atlantic bubble, but many of our operators will not survive without the continued extension of the Canada emergency wage subsidy and the Canada emergency rent subsidy supports. These programs provide a backstop for our businesses to keep staff employed and keep the doors open in a time of much uncertainty. With border closures and continued COVID-19 restrictions, these operators are in an impossible position of trying to budget, plan, staff and forecast with no real understanding of what the coming months will bring.
The Government of Canada has acknowledged the hardest-hit sector with these supports. We thank you for recognizing the importance of our industry, and we ask that you continue to consider and evaluate these programs.
As we move to reopening to the rest of Canada, our industry is faced with the reality of no meaningful tourism on Prince Edward Island until the 2022 season. Even if our operators survive the 2021 season, without the ability to generate meaningful cash flow, they are looking at a long winter to prepare for what is, hopefully, an improved 2022. The industry will not see 2019 visitation or expenditure levels that we enjoyed only a couple of years ago, but this signifies the start of a struggle back to the thriving industry we once were.
With that, our focus is on ensuring the survival of our operators and recognizing the importance of not only surviving but finding a way to see capital infrastructure investments and upkeep so that our businesses are well positioned to welcome back visitors to our island in the way we once did, with world-class hospitality, authentic island experiences and product that is refreshed, renewed and revitalized.
Thank you.