Tourism industry says more government help needed to prevent 'casualties'

Waterloo region's tourism industry association says local businesses have been battered by the COVID-19 pandemic, and the federal government should do more to help.

Minto Schneider, CEO of Waterloo Regional Tourism, says current programs like the federal wage subsidy aren't of much use to tourism businesses whose seasonal workers haven't started yet.

And while the government is allowing businesses to defer payment of sales tax remittance until the end of June, "deferring HST doesn't help if you don't have any revenue to defer payment on," Schneider said.

According to a recent report from Destination Canada, the summer season accounts for the bulk of most tourism businesses' profits. But, it says, the onset of the COVID-19 pandemic means this summer season is uncertain at best.

Schneider said businesses in the tourism industry need immediate, up-front help with cash flow, and an extension of the federal wage subsidy until the end of the year.

'Essentially without revenue'

Doug Wilson, president of the Cambridge Butterfly Conservatory, agrees that tourism businesses need more time to get their finances together.

He said his venue was among the first in the region to close in mid-March.

"We've essentially been without revenue at all since that day," said Wilson, who pointed out that experience-based businesses, like his, have no way to shift to pickup or delivery sales.

So far, Wilson said he's used the federal government's wage subsidy to pay some of the few workers still on staff. He's also received aCanada Emergency Business Accountloan.

Still, Wilson expects it will be a long time before he'll once again turn a profit, and in the meantime, property taxes, insurance payments and other fixed expenses still need to be paid.

He agrees with Schneiderthatthe federal government should extend the wage subsidy program and further delay sales tax remittances and source deductions.

But Wilson said he'd also like the province to provide more money to municipalities, so they can, in turn,provide more relief on property taxes. In Cambridge, interest, penalties, late payment fees and other charges resulting from property tax and water bills have been waived until June 1.

"For most businesses, if you're not open, you'll only be in worse position June 1," he said.

In a statement to CBC News, a spokesperson for Ontario's Ministry of Finance said the province is "deferring the upcoming municipal remittance of education property tax to school boards by 90 days."

"This will provide municipalities with the flexibility to, in turn, provide property tax deferrals of over $1.8 billion to local residents and businesses," the statement said.

In the meantime, the federal government has pumped more money into FedDev Ontario to help businesses, such as tourism operators, who don't qualify for existing programs, according to a statement from a spokesperson forthe Ministerof Economic Development and Official Languages.

Schneider said time is of the essence for the government to throw a lifeline to the struggling tourism industry.

"If they don't take action within the next couple of weeks, we're going to have many more casualties and the tourism landscape in Waterloo region is going to be very different from what it was before COVID hit," said Schneider.