Thank you for the opportunity and for listening to me.
During the last 10 weeks, the RV industry has found dealing with COVID and its restrictions challenging. The rentals division has taken a massive hit. The Canadian RV rentals sector combined contributes over $260 million annually to the economy. Now we hear that there might be no recovery until a vaccine is available, as per Premier John Horgan and Dr. Bonnie Henry in the Vancouver Sun on May 7. This could jeopardize our industry for the next two years.
What is the government's plan for tourism-focused companies for 2020 and 2021? What are the serious plans to open up the borders, including flights from Europe? With regard to the procurement of PPE, have we plans to fill the shelves for that first worst-case scenario? Why the slow response on stopping flights from China in early February? Has a study been done for the people who follow basic protocol: wash your hands often and well, use antiseptic when moving from one place to another, keep a two-metre space and use a mask when that can't be accomplished, and don't touch your face?
As the largest Canadian RV rental company, Fraserway RV has over $100 million in RV rental inventory, half of which will now need to be liquidated. Many small businesses and service providers along the highways of Canada rely on summer tourists for their survival. Some may think that locals will fill the gap. However, overseas tourists average more than three-week rental bookings, plan their holidays four to 12 months in advance and fill campgrounds seven days a week. Locals travel mostly during long weekends. They contribute only 10% to the rental revenue quoted above. Currently, most campgrounds are shut down. With provincial parks now putting restrictions on limited capacity and no interprovincial travel, it poses challenges for the campgrounds and providers and causes a significant drop in their revenue.
Rental operating expenses continue 12 months through the year. This is significant and serious, causing a lot of anxiety and concern for many operators who will not be able to survive the long winter coming up. Businesses have been innovative in operating and following protocol during this crisis. For example, Fraserway RV had 12 open locations—limited open locations—and had zero COVID experience, including family circles across hundreds of employees and customers. For this we are very thankful.
There are challenges for people isolated at home for long periods of time and for individuals who can't pay their bills. Many of those who have lost their business or lifetime investments will have serious health challenges. Who will pay the taxes as our federal deficit climbs to a quarter of a trillion dollars and as our debt starts to approach the range of one trillion dollars?
I understand that with every death there is a grieving family, but the media love to amp up the overall fear of this crisis. They need to look at things from a broader picture, including celebrating our successes, how the majority is committed to the new protocol, how most provinces have levelled the curve, and how important it is to open the economy safely while following that protocol.
Most decisions are being made by individuals who do not have worries about employment or have a regular salary through government payroll, health institutions or consultancy. This is not to question those at the table but to question those who are under-represented. Small business contributes a large part to the Canadian economy and is a leading innovator. In 2009, we led the G7 out of the deepest recession since the Great Depression. What are our plans now?
Finally, when some political parties start collecting on the wage subsidy program when they don't contribute taxes, this is a conflict of interest.
In my family journey as an entrepreneur, over 51 years there were many times when payroll went out and the family was told not to cash the cheques, which meant minimal spending for a period of time. Other times, we spent 50 to 80 hours a week getting another unit ready so a customer could take delivery so we could make payroll. Customer service, banking, purchasing, paying taxes along with a myriad of other regulations, through this all we grew the business and were successful. Today we have a great team. We pay taxes. We support the community. We run a charitable foundation. We will survive this financial crisis, but to ensure that we are there in the future, we will need to cut expenses. How much will depend on your response—I should say, the government's response. You're the committee reporting.
This experience is nothing new for the upcoming generation of entrepreneurs who have poured and will pour their lives into their businesses and are now potentially losing everything. These are the drivers of our future economy.
I do agree we need to ensure that we don't have a relapse of the virus, and we want to be cautious. As we move forward, we need to be responsive with a multi-pronged approach to limit the economic damage and ensure a quick rebound. Given the greater risk of COVID-19, individuals—