Tourism businesses in a 'dire' state, with debt mounting and demand meager: industry

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Tourism businesses in a 'dire' state, with debt mounting and demand meager: industry
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The head of the Tourism Industry Association of Canada says businesses are struggling to stay afloat under a pile of debt and a dearth of overseas visitors. In a poll of tourism operators, some 45 per cent said they were likely or somewhat likely to shut down within three years unless the government steps in to adjust their loan conditions.

The head of the Tourism Industry Association of Canada says businesses are struggling to stay afloat under a pile of debt and a dearth of overseas visitors.

The tourism association is calling on the federal government to extend the zero-interest repayment deadline for CEBA loans to Dec. 31, 2025, two years past the current deadline. One reason for revenue struggles weighing on repayment efforts is a lack of tourists from abroad compared with 2019. Americans have "cocooned within their own country," Potter said, adding that she remains hopeful they will return in force soon.

"We were in a challenging position with labour before the pandemic hit, and the pandemic has just accentuated it," Potter said.

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