The tourism industry in northwestern Ontario is in dire straights and federal support is needed.
Sioux Lookout Mayor Doug Lawrance was able to convey that message during a virtual one-on-one meeting with Economic Development Minister Melanie Joly.
Lawrance says his community can’t depend on Canadian visitors to make up for what has been lost.
“I’m told 95% of the business comes from the mid-western states in the United States which is shutdown completely. The other fact is that most of that business happens in late May, June, July.”
Lawrance states “June and July and the year is gone. The border is closed. The season is lost. And the businesses who rely on that short time frame for the annual business are hurting.”
He notes tourist outfitter revenue is down which means money normally spent through 58 businesses is missing from the economy of Sioux Lookout.
Lawrance adds not being open to the U.S. marketplace has decimated the revenues for the 25 Sioux Lookout area tourism businesses this year.
He admits there is no magic wand that you can wave to replace the market that has been lost but is hoping the conversation with Minister Joly will spark some movement.
“Great to have the opportunity to have that conversation and follow-up with a letter and we will be following up again with that Ministry as we did with the Provincial Standing Committee on Finance and Economics. We’re putting forward the same case.”
The letter to the Minister of Economic Development outlined a number of points stressing the important role the tourism industry plays on the local economy:
-Tourist outfitters expenditures are down which means money normally spent through 58 area businesses is missing from the economy of Sioux Lookout.
-Tourist outfitters have fixed operating costs which must be paid whether or not they have income: insurance, property taxes, hydro, telephone, bank fees, automobile loans, long term debt and more. No leniency is being given on these payments.
-During the winter months marketing expenses were incurred anticipating that revenues from the 2020 season would cover the expenses, they will not.
-This winter outfitters spent money to do upgrades to cabins, lodge facilities and marine equipment anticipating income from this season which did not flow.
-Not being open to the U.S. marketplace has decimated the revenues for the 25 Sioux Lookout area tourism businesses this year. The significant employment and the significant expenditures to supporting businesses did not happen this year.
-Some of the Lodges/Outfitters are new owners that have substantial loans from financial institutions and are fearful that they may lose their investments to the bank if they are unable to continue to make debt payments, not to mention the fixed costs like utilities, insurance, property taxes.
-Many American Tourists are not willing to give up their reservations in hopes of the borders opening for Fall hunting season, leaving Tourist Operators in a situation whereby they are afraid to lose their secured and repeat clientele from the U.S. in favour of getting the odd reservation from a Canadian first time client that may not come back.
-Our Lodge and Outfitters have advised that some clientele from the U.S. have indicated that if and when the borders open, they are not sure if they would be willing to travel fearing no health insurance coverage if they were to contract the virus. In addition, some of the U.S. clientele have indicated that they may be required to self-isolate upon return which would put a burden on their allotted vacation time.
-Tourist business owners have indicated that they may not be able to ensure property tax payments as a result of the impact that COVID has had on their businesses.
-There is no magic that can create this tourist market to come to the Sioux Lookout outfitters from another area.
