Industry Committee on June 22nd, 2021

[Monique Gomel]

Yes, absolutely. The organization is involved in producing a large volume of data and research. That information is being shared with the department and with the government.

[Brian Masse, NDP, Windsor West, ON]

I'd ask if you could provide that information to this committee. It would be very helpful for us in our deliberations on the report.

[Monique Gomel]

Yes, we can get that information to the clerk.

[Brian Masse, NDP, Windsor West, ON]

Great. Thank you very much. I appreciate your work.

Thank you, Madam Chair, for the time.

[The Chair, Liberal, Sherry Romanado]

Great.

We'll now start our second round of questions.

Our first five-minute round goes to MP Baldinelli.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Thank you, Madam Chair.

Thank you to the witnesses again.

I'm just following up on what my colleague Mr. Masse says. Destination Canada does provide some great information in terms of statistics and forecasting. Their last visitor economy forecast update in June was really more than helpful, so thank you for continuing to put that information out. It's quite helpful.

I just want to quickly go to the budget. In 2021, $100 million was provided to Destination Canada.

Ms. Walden or Ms. Gomel, do we know if that's a one-year commitment or two-year? Is it building on the existing, I believe, $96 million in funding that Destination Canada has?

[Monique Gomel]

If the chair will allow, I will pass that question to Ms. Walden.

[Marsha Walden]

Thank you. I'm happy to answer that.

Yes, our current funding is in the order of $96 million, and $100 million was proposed in the April budget as additional funding for Destination Canada. It's over a three-year period. It's somewhat front-end loaded. Although those discussions with Treasury Board are still under way to define exactly how those funds would be spent and in what years, I think the intent of the budget originally was to front-end load those significantly in year one and two.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Okay. Thank you.

Again, I'm just following up on a line of questioning one of my colleagues was asking. It's that whole notion about the consultation by the federal government and the information that you're able to provide them. I was wondering if you have spoken to the government about any reopening plans from a tourism perspective with the data that you're providing.

Are they seeking any of your input with regard to that?

[Marsha Walden]

We certainly have an ongoing conversation with our ministry on the conditions and state of the industry, on what our industry is asking for, and some of the advocacy bodies like the Tourism Industry Association of Canada are very vocal on these issues and have ongoing conversations with ISED. We provide all of the research that is provided to our industry online and take our ministry through that. I think in the past year we've produced 250 reports on different aspects, on everything from Canadian sentiments about travel and whether or not they're willing to travel and whether or not they're willing to host visitors, to the ongoing economic conditions of various parts of our sector.

We've also shared perspectives from our industry on those areas that Monique spoke about earlier around the need for clarity on what the milestones will be as our market reopens and on consistency in how we apply protocols, whether it's at the border or at individual airports, provincially and internationally. Finally, we've shared our perspective on the need for urgency, because summer is upon us and it would be very difficult if our industry is unable to have revenue driven through this summer.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Thank you for sharing that. There is an urgency here. I'm fearful that we've lost another summer tourism season in Niagara with those borders continuing to be closed.

As you alluded to, speaking with both those national and provincial organizations, there was yesterday's announcement, which many people were holding out hope would be an indication for the tourism sector. Chris Bloore, the president of the Tourism Industry Association of Ontario, just called yesterday's announcement “devastating”. He said, “It's absolutely a gut punch.”

As tourism businesses are trying to find that notion of consistency, timelines, a formal plan that needs to be in place, I want to ask this, because those same kinds of views are held by most of the tourism organizations with regard to the need for a tourism reopening plan. Does Destination Canada agree with the Tourism Industry Association and the Canadian Travel and Tourism Roundtable when they call on the government to immediately release an implementation plan to reopen our borders?

It's my understanding that those plans.... Not only the Tourism Industry Association but, Ms. Gomel, Rocky Mountaineer is even a member of the Canadian Travel and Tourism Roundtable.

Do you share those views that we need those metrics in place and that formal reopening plan in place, and in place now?

[Monique Gomel]

Certainly, we think a clear road map is needed, with some clarity around milestones.

I see the red card.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

It's that nasty red card again.

Thank you, Ms. Gomel and Ms. Walden.

[The Chair, Liberal, Sherry Romanado]

Thank you, Mr. Baldinelli. I'll make it up to you. I'll come visit Niagara when I can.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

We'll hold you to it.

[The Chair, Liberal, Sherry Romanado]

That's perfect.

Our next round of questions goes to MP Lambropoulos.

You have the floor for five minutes.

[Emmanuella Lambropoulos, Liberal, Saint-Laurent, QC]

Thanks, Madam Chair.

Thank you to our witnesses for being with us today. I'll be splitting my time with my colleague Mr. Erskine-Smith.

My question goes to Ms. Gomel.

I know that many of us have asked you about border reopenings, especially for fully vaccinated people. Currently, as it stands, on July 5, rules will be changing for Canadians and permanent residents who are fully vaccinated upon entry to Canada. However, we know that there's no talk of anyone else being allowed to enter Canada.

You've said that you really don't have much of a say in this matter but that you provide science and you provide the minister with information. Are you ever able to have a more involved role in that kind of conversation?

I'll ask my second question now. With regard to interprovincial travel, which is the role that you said you play, and promoting interprovincial travel, when certain provinces still haven't accepted this going forward for the summer, what are your plans on encouraging provinces to open their borders, at least to other Canadians? In what capacity are you able to do this?

[Monique Gomel]

As a federal Crown corporation, Destination Canada is not a policy-making body, so we are not involved in those questions around federal or provincial borders. Our marketing plans are sensitive to the different restrictions currently across the country. As I mentioned, we've really taken a team Canada approach, working very closely with our provincial and territorial partners, working with the different nuances across the country.

That is the extent of our involvement in terms of our mandate on marketing and providing research and intelligence.

[Emmanuella Lambropoulos, Liberal, Saint-Laurent, QC]

Okay. Thanks.

Since I have about two and a half minutes left, I'll pass it on to my colleague.

[Nathaniel Erskine-Smith, Liberal, Beaches—East York, ON]

Thanks very much.

You've acknowledged that you are not in a position to comment on the border reopening or give advice to the government. You're not involved in those conversations explicitly. However, we obviously know that the border closure has a deep and lasting impact on the tourism sector here in Canada. In regard to, in your words, the “devastation” of the COVID-19 pandemic, you have said that you need clarity around reopening milestones, consistency in protocols, and governments to act with urgency.

On July 5, we're going to say fully vaccinated Canadians and permanent residents don't need to quarantine, and there will be freer travel as a result. When we look at Americans and the importance of allowing those fully vaccinated Americans to come into Canada, I wonder if you can comment on the fact that when I look at the numbers, in 2019, we welcomed 22.1 million international tourists. Of those, over two-thirds were Americans. Over 15 million international tourists came from the United States.

If we said, as an initial phase, that we're going to open our border to our American cousins who are fully vaccinated, what would be the positive impact on the tourism sector in Canada?

[Monique Gomel]

From my own business at Rocky Mountaineer, I can certainly attest that the U.S. is our number one market. For my own business, it's also our top market for guests, so it plays a huge role.

It has been a very challenging situation. I work in a business where over 90% of our guests come from outside Canada, and we haven't been able to operate. We're looking at starting up again in July, but it will be at a reduced schedule as we're trying to make up as much volume loss from Canadians. Obviously, it remains unknown. We do have a lot of Americans booked onto our train in August.

It's certainly challenging. We're doing the best we can in terms of encouraging Canadians to travel and—

[Nathaniel Erskine-Smith, Liberal, Beaches—East York, ON]

Pause there. On that point, isn't it all the more important that we reopen to fully vaccinated Americans, as an example, when, as of July 5, Canadians are going to be able to travel internationally and come back, and there's no longer the same incentive for that domestic travel? Is that not of concern to you?

[Monique Gomel]

Certainly. We, as I mentioned, believe that it's critical for Canadians to travel within Canada this summer to support the industry.

[Nathaniel Erskine-Smith, Liberal, Beaches—East York, ON]

Thanks very much. Thanks for all your work.

[The Chair, Liberal, Sherry Romanado]

Thank you.

Mr. Lemire, you now have the floor for two and a half minutes.