Ontario continues to struggle with the revival of the tourism sector

The Ontario Chamber of Commerce and the Ontario Tourism Industry Association of Ontario have issued a study showing that the average income for Ontario's tourism enterprises is 64% of what it was in 2019, and that 70% of those businesses have gone on debt in order to survive.

The two organisations claimed in the joint analysis that the tourist sector would not recover from the Covid crisis until 2025, while suggesting tax benefits, cannabis tourism, and low cost housing to help with hiring new employees.

The province will need a comprehensive plan to deal with these issues, according to Daniel Safayeni, vice president of policy at the Chamber of Commerce.

"The potential of this industry will not be reached until both some of the immediate challenges get addressed, but then also the more structural challenges as well that are prohibiting the growth, not only of the tourism industry, but many industries that have been perhaps disproportionately impacted by COVID," he stated.

The Ontario government should make its staycation tax incentive permanent, while the U.S. government may boost the maximum amount forgiven on COVID business loans and lengthen the interest-free payback period, the study advises.

According to Safayeni, Ontario might potentially facilitate cannabis tourism by modifying its regulations for special event licensing and consumption centres, as more overseas visitors are searching for a marijuana experience inside their visits.

"That can be a draw of its own — just look what regions like Prince Edward County and Niagara has done with wine. Imagine something similar to that within the cannabis sector and the types of international and domestic tourists that can draw as well", he added.

However, luring both visitors and potential employees to Ontario is a struggle, as the number of openings in the hotel and tourist industries increased by 81% when compared to 2019. At the same time, businesses' capability to fulfil tourist demand is being "strained by Covid-related worker absenteeism and exhaustion," the study states, because of the significant labour shortage.

In a statement, Ontario's Minister of Tourist, Culture, and Sport expressed his gratitude for the research and promised to keep working to solve the problems facing the tourism sector.

Neil Lumsden commented:

"We are working to ensure Ontario's tourism industry re-emerges as an economic powerhouse, welcoming visitors and showcasing all that Ontario has to offer."

In addition to tourism-specific suggestions, the report offers a number of larger reforms that might aid the tourist industry and others in attracting and retaining personnel. It recommends bolstering the province of Ontario's public transportation system, building more rental units at reasonable prices, and expanding broadband internet access to the province's rural areas.

The research also suggests adjusting the immigration system to better recruit and retain foreign students and hospitality workers in Ontario. According to the data, the majority of Centennial College's travel and tourism students were planning to seek for a postgrad work visa. Yet Ontario is missing out on this opportunity due to immigration lag and limitations for specific programmes that prohibit hospitality sector employees.

 

Source: cbc.ca