Colleen27
DIS Legend
- Joined
- Mar 31, 2007
- Messages
- 24,190
Canada has a high percentage of revenue (and therefore taxes) coming from tourism. Now they have a few issues
- huge drop in external tourism
- job loss in the sector until well into 2021 means those people are not going to be spending (includes airline employees, hotel employees, restaurant employees, tourism based business employees, etc)
- domestic tourism cannot make up the shortfalls, nor will domestic tourists be willing to pay the prices that international tourists pay in some of the city centres for hotel rooms and attractions
- minimal income from high value business travel
So it is not 'just' travel and leisure that is being impacted. In many countries, like Canada, the travel sector is a significant part of the economy. I heard from a friend yesterday in Canada that she expects her company to make more cuts next week, and that is one of the largest globally in her tourism-related industry. I know other people who didn't even bother to open for the 2020 season as it ends in September, and there is no travel from their key markets so no point to open (one is a tourist related company which targets high value Dutch travel)
And in addition to travel & tourism (and probably not something the government is going to be interested in talking about, much less being seen as sympathetic to) a lot of Canadians in border communities shop on the U.S. side because the lower taxes often more than make up for the exchange rate. When our border crossing closed because of a natural disaster, 3 years ago, the grocery in my town saw a 30% drop in sales volume practically overnight. Bars and liquor stores also reported big drops for the lack of Canadian business, though of course it is easier to go without booze if the prices are too high than it is for food. And our shipping/mailbox place lost fully half of their business because so much of their model was giving Canadians a U.S. shipping address.
I know a lot of people in non-border states don't realize how many economic and social ties cross between the U.S. and Canada in the everyday lives of residents on both sides, and I'm starting to think that the same is true of some Canadians as well.