As the Canadian economy remains fragile, and in many ways, uncertain, companies across the country are tightening their belts and scaling back their annual holiday parties, The Canadian Press reported.

Even Queen Elizabeth is feeling the pressure this year, cancelling the annual Christmas party for Buckingham Palace staff, citing the "difficult financial circumstances" Britain is facing.

Pam McCarthy, owner of Five Star Events in Calgary, said companies that cancelled their annual holiday party last year either aren't having one this year or are staging a party on a considerably smaller scale than in past years.

Although financial strain is still evident, 2010 has not been nearly as difficult as 2008 and 2009, says Tiff Daniels, director of sales with Canadian Outback Adventures and Events in Vancouver.

"Late 2008 and 2009 were a bit more challenging, but 2010 has bounced back," he said.

Daniels said most companies will have some form of celebration for the holidays, but it will likely be a scaled-back version of past parties.

There are signs of recovery, however. The Vancouver Sun reported earlier this month that "party bookings at city hotels and meeting venues have seen a seasonal uptick, though not necessarily to pre-recession levels."

In the same Vancouver Sun article, Graeme Benn, from Fairmont Hotels and Resorts northwest region, said there has been an increase in the company's bookings for holiday parties from "companies that perhaps didn't have [a party] last year."

With files from The Canadian Press.

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