CEWS is one of the few support programs our sector has been able to access and is key to allowing businesses to keep their staff and avoid massive layoffs come September, not to mention bankruptcy.
Second, BCAP doesn’t work for the tourism sector, just like hotels, which are part of our sector. Across the spectrum, this is a problem. Forty-three per cent of our recent survey respondents were flat-out denied. More than 50% waited three months to hear back, and 38% are still waiting. Only 12%, all told, were approved. These businesses are deemed too risky to lend to and have been shut out of the program. Without access to government-backed liquidity, they won’t have the cash flow required to cover fixed costs or employee salaries, and they're just going to go bankrupt. BCAP needs to be amended, and it needs to be 100% government backed with a forgivable portion to cover fixed costs.
Second is reopening Canada and enticing travel. Pre-COVID, Canada was on track for another record year of inbound visitors bringing in more than $23 billion to the economy. Since March, we’ve seen a 98% decrease in inbound visitors each month. With borders closed, tourism businesses will not survive for the eventual return of regular travel, including international travel. Providing incentives to spend on tourism products will be key to making the transition a reality.
The loss of inbound tourism has had a substantial economic impact across the globe, including in Canada. Many countries offer significant inbound travel incentives to pique visitor interest. For now, we need incentives for Canadians to visit their own country through tax credits. When it’s safe to reopen our borders, we’ll also need to attract travellers in an internationally competitive market. Destination Canada and other government agencies will need dedicated funds to ensure we’re in a competitive marketplace.
Finally, the ongoing bans on mass gatherings have taken their toll and will only get worse come September, without business meetings, conventions and festivals this fall. This sector of the travel economy will need dedicated support to ensure events are able to meet expectations once they’re able to operate again.
My conclusion is this: The visitor economy has given much to Canada with 1.8 million jobs, more than $100 billion annually and a sense of cultural and national pride. We cannot afford to lose tourism. While we appreciate the programs in place so far, we continue to need government support to ensure we’re still here to welcome guests tomorrow and in the future.
Thank you.