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COVID-19 take Canada’s top park to rock bottom

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Tourism businesses across the country are bracing for the impact of coronavirus on sales.

Smaller operators and those that rely heavily on visitors from abroad may be especially vulnerable to lost revenue, say industry experts.

The federal government announced Friday it will restrict the number of airports that can receive international flights. It is also evaluating whether entry rules may need to be tightened at the American border.

Before that news, iconic tourist site the CN Tower in Toronto had already announced it was closing temporarily. The landmark Toronto building is suspending operations until April 14.

By late Friday afternoon, National Museums of Canada announced all national museums would be closed until further notice, and many provincial attractions like Toronto’s Art Gallery of Ontario, soon followed.

Also shuttered: Montreal’s Museum of Fine Arts, Edmonton’s Telus World of Science, Calgary’s Glenbow Museum, Vancouver’s Science World, to name a few.

In Niagara Falls, one of the country’s most popular tourist destinations, there’s an acute level of anxiety about the coronavirus pandemic.

“To be honest with you, I think SARS and H1N1 were dress rehearsals for this,” says Anna Pierce, vice president of Niagara Helicopters. “They were literally not anywhere near the impact that COVID-19 is going to have on our industry.”

A sudden shutdown for Niagara Parks

On Friday night the Niagara Parks Commission, an agency of the Ontario government, announced that all Niagara Parks attractions are temporarily closing.

The commission’s restaurants, retail stores and golf courses, as well as the Falls Incline Railway are affected. Public programming and events are also being suspended until April 6.

The Parks Commission is responsible for many of the attractions, restaurants and facilities in the falls region, including the Table Rock area beside Horseshoe Falls.

Niagara Parks outdoor areas and public washroom facilities like those at Table Rock, the popular spot at the lip of the falls, will remain open and be regularly cleaned. People will still be able to visit the falls and snap pictures, but many of the attractions will be closed.

Niagara Falls welcomes 12 million visitors a year, making it the most popular single site natural attraction in Canada. Another two million visitors visit the Niagara region, well known for its vineyards, wineries and theatre festival.

Relying on international visitors

A third of the falls’ guests are international tourists, with most visitors coming from the U.S., but a large number also from Britain, China, Japan and South Korea.

 

One of Niagara Helicopters’ four Airbus H130 choppers. The company’s vice president is worried COVID-19 will have a much worse impact on Canadian tourism than SARS or H1 N1. (Niagara Helicopters )

 

At Niagara Helicopters, the ratio of international tourists is even higher.

They make up more than half of customers who pay for a sight-seeing flight over the falls and surrounding area.

Pierce says foreign tourists are willing to spend more money for a special memory after coming a long way. “They want to do something that is the wow factor kind of experience. And we fit that bill very, very well.”

While the company’s advance bookings for May and June are holding solid, cancellations are coming in for April.

With business already down 15 to 20 per cent, Pierce is predicting weak demand from Asian visitors this summer, and is concerned about losing European tourists. After this week, the prospect of losing U.S. visitors is adding to the worry.

Earlier this week Niagara Parks Commission CEO David Adames was optimistic the area would still attract its normal crowds from within driving distance for the March school break in Ontario.

Ahead of the shutdown, his organization’s response to the pandemic was to step up janitorial practices and provide hand sanitization in a bid to inspire public confidence.

Approximately 33 000 people work in the Niagara region’s  hospitality and tourism industry, and in the peak of summer Niagara Parks employs 1,800 workers. Adames admits that may change.

“Because we are reliant in revenue producing operations, we do make adjustments based on sales levels,” he said.

It normally hires roughly 800 students a year, but says the situation with COVID-19 is evolving so rapidly it can’t speculate on future staffing levels.

Not a pretty picture for the industry

At a Hospitality and Tourism Management class at Ryerson University in Toronto this week, undergraduate students were learning a real life lesson about how quickly business can go bad with a crisis.

Some were worried whether places like Niagara Parks would have jobs for them.

For 2nd year student Jonny Braun, there’s too much uncertainty. “It makes us think that ‘oh we have internships in the summer and jobs, will we still have those if this continues?'”

“I definitely think there’s going to be a big hit to the industry,” said classmate Jad Abboud. “Companies won’t be making as much money as projected a month or two ago.”

 

Professor Frederic Dimanche teaching a Hospitality and Tourism Management class at Ryerson University’s Ted Rogers School of Management this week. The coronavirus pandemic is creating uncertainty for students training to work in the tourism sector. (Michael Cole/CBC )

 

Professor Frederic Dimanche outlined for his students the many aspects of the industry that will be affected by coronavirus.

Small tourism operators like Niagara Helicopters are particularly vulnerable, he said.

Unlike international companies, they don’t have reserve budgets or the ability to borrow from banks. Plus,”it’s going to be that much harder for them because they’re focusing also on one particular market in one particular destination,” he said.

There might be some comfort for small operators focused on domestic attractions in that Canada’s Chief Public Health Officer Dr. Theresa Tam has advised all Canadians to avoid non-essential travel outside the country.

That means those people stir crazy to go somewhere may end up taking in more local sites and experiences.

At Niagara Helicopters, marketing efforts have already shifted to focus on markets closer to the company’s home base. earlier this month.

“We don’t know what is going to happen next,” says Pearce.

If the pandemic is prolonged into the summer, she’ll have a hard time keeping her 10 pilots up in the air.

She’s still looking skyward though for help. “My number one prayer is that it peters out very quickly.”

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Looking for the next mystery bestseller? This crime bookstore can solve the case

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WINNIPEG – Some 250 coloured tacks pepper a large-scale world map among bookshelves at Whodunit Mystery Bookstore.

Estonia, Finland, Japan and even Fenwick, Ont., have pins representing places outside Winnipeg where someone has ordered a page-turner from the independent bookstore that specializes in mystery and crime fiction novels.

For 30 years, the store has been offering fans of Agatha Christie’s Hercule Poirot or Arthur Conan Doyle’s Sherlock Holmes a place to get lost in whodunits both old and new.

Jack and Wendy Bumsted bought the shop in the Crescentwood neighbourhood in 2007 from another pair of mystery lovers.

The married couple had been longtime customers of the store. Wendy Bumsted grew up reading Perry Mason novels while her husband was a historian with vast knowledge of the crime fiction genre.

At the time, Jack Bumsted was retiring from teaching at the University of Manitoba when he was looking for his next venture.

“The bookstore came up and we bought it, I think, within a week,” Wendy Bumsted said in an interview.

“It never didn’t seem like a good idea.”

In the years since the Bumsteds took ownership, the family has witnessed the decline in mail-order books, the introduction of online retailers, a relocation to a new space next to the original, a pandemic and the death of beloved co-owner Jack Bumsted in 2020.

But with all the changes that come with owning a small business, customers continue to trust their next mystery fix will come from one of the shelves at Whodunit.

Many still request to be called about books from specific authors, or want to be notified if a new book follows their favourite format. Some arrive at the shop like clockwork each week hoping to get suggestions from Wendy Bumsted or her son on the next big hit.

“She has really excellent instincts on what we should be getting and what we should be promoting,” Micheal Bumsted said of his mother.

Wendy Bumsted suggested the store stock “Thursday Murder Club,” the debut novel from British television host Richard Osman, before it became a bestseller. They ordered more copies than other bookstores in Canada knowing it had the potential to be a hit, said Michael Bumsted.

The store houses more than 18,000 new and used novels. That’s not including the boxes of books that sit in Wendy Bumsted’s tiny office, or the packages that take up space on some of the only available seating there, waiting to be added to the inventory.

Just as the genre has evolved, so has the Bumsteds’ willingness to welcome other subjects on their shelves — despite some pushback from loyal customers and initially the Bumsted patriarch.

For years, Jack Bumsted refused to sell anything outside the crime fiction genre, including his own published books. Instead, he would send potential buyers to another store, but would offer to sign the books if they came back with them.

Wendy Bumsted said that eventually changed in his later years.

Now, about 15 per cent of the store’s stock is of other genres, such as romance or children’s books.

The COVID-19 pandemic forced them to look at expanding their selection, as some customers turned to buying books through the store’s website, which is set up to allow purchasers to get anything from the publishers the Bumsteds have contracts with.

In 2019, the store sold fewer than 100 books online. That number jumped to more than 3,000 in 2020, as retailers had to deal with pandemic lockdowns.

After years of running a successful mail-order business, the store was able to quickly adapt when it had to temporarily shut its doors, said Michael Bumsted.

“We were not a store…that had to figure out how to get books to people when they weren’t here.”

He added being a community bookstore with a niche has helped the family stay in business when other retailers have struggled. Part of that has included building lasting relationships.

“Some people have put it in their wills that their books will come to us,” said Wendy Bumsted.

Some of those collections have included tips on traveling through Asia in the early 2000s or the history of Australian cricket.

Micheal Bumsted said they’ve had to learn to be patient with selling some of these more obscure titles, but eventually the time comes for them to find a new home.

“One of the great things about physical books is that they can be there for you when you are ready for them.”

This report by The Canadian Press was first published on Sept. 15, 2024.



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Labour Minister praises Air Canada, pilots union for avoiding disruptive strike

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MONTREAL – Canada’s labour minister is praising both Air Canada and the union representing about 5,200 of its pilots for averting a work stoppage that would have disrupted travel for hundreds of thousands of passengers.

Steven MacKinnon’s comments came in a statement shared to social media shortly after Canada’s largest air carrier announced it had reached a tentative labour deal with the Air Line Pilots Association.

MacKinnon thanked both sides and federal mediators, saying the airline and its pilots approached negotiations with “seriousness and a resolve to get a deal.”

The tentative agreement averts a strike or lockout that could have begun as early as Wednesday for Air Canada and Air Canada Rouge, with flight cancellations expected before then.

The airline now says flights will continue as normal while union members vote on the tentative four-year contract.

Air Canada had called on the federal government to intervene in the dispute, but Prime Minister Justin Trudeau said Friday that would only happen if it became clear no negotiated agreement was possible.

This report from The Canadian Press was first published Sept. 15, 2024.

Companies in this story: (TSX:AC)

The Canadian Press. All rights reserved.



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As plant-based milk becomes more popular, brands look for new ways to compete

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When it comes to plant-based alternatives, Canadians have never had so many options — and nowhere is that choice more abundantly clear than in the milk section of the dairy aisle.

To meet growing demand, companies are investing in new products and technology to keep up with consumer tastes and differentiate themselves from all the other players on the shelf.

“The product mix has just expanded so fast,” said Liza Amlani, co-founder of the Retail Strategy Group.

She said younger generations in particular are driving growth in the plant-based market as they are consuming less dairy and meat.

Commercial sales of dairy milk have been weakening for years, according to research firm Mintel, likely in part because of the rise of plant-based alternatives — even though many Canadians still drink dairy.

The No. 1 reason people opt for plant-based milk is because they see it as healthier than dairy, said Joel Gregoire, Mintel’s associate director for food and drink.

“Plant-based milk, the one thing about it — it’s not new. It’s been around for quite some time. It’s pretty established,” said Gregoire.

Because of that, it serves as an “entry point” for many consumers interested in plant-based alternatives to animal products, he said.

Plant-based milk consumption is expected to continue growing in the coming years, according to Mintel research, with more options available than ever and more consumers opting for a diet that includes both dairy and non-dairy milk.

A 2023 report by Ernst & Young for Protein Industries Canada projected that the plant-based dairy market will reach US$51.3 billion in 2035, at a compound annual growth rate of 9.5 per cent.

Because of this growth opportunity, even well-established dairy or plant-based companies are stepping up their game.

It’s been more than three decades since Saint-Hyacinthe, Que.-based Natura first launched a line of soy beverages. Over the years, the company has rolled out new products to meet rising demand, and earlier this year launched a line of oat beverages that it says are the only ones with a stamp of approval from Celiac Canada.

Competition is tough, said owner and founder Nick Feldman — especially from large American brands, which have the money to ensure their products hit shelves across the country.

Natura has kept growing, though, with a focus on using organic ingredients and localized production from raw materials.

“We’re maybe not appealing to the mass market, but we’re appealing to the natural consumer, to the organic consumer,” Feldman said.

Amlani said brands are increasingly advertising the simplicity of their ingredient lists. She’s also noticing more companies offering different kinds of products, such as coffee creamers.

Companies are also looking to stand out through eye-catching packaging and marketing, added Amlani, and by competing on price.

Besides all the companies competing for shelf space, there are many different kinds of plant-based milk consumers can choose from, such as almond, soy, oat, rice, hazelnut, macadamia, pea, coconut and hemp.

However, one alternative in particular has enjoyed a recent, rapid ascendance in popularity.

“I would say oat is the big up-and-coming product,” said Feldman.

Mintel’s report found the share of Canadians who say they buy oat milk has quadrupled between 2019 and 2023 (though almond is still the most popular).

“There seems to be a very nice marriage of coffee and oat milk,” said Feldman. “The flavour combination is excellent, better than any other non-dairy alternative.”

The beverage’s surge in popularity in cafés is a big part of why it’s ascending so quickly, said Gregoire — its texture and ability to froth makes it a good alternative for lattes and cappuccinos.

It’s also a good example of companies making a strong “use case” for yet another new entrant in a competitive market, he said.

Amid the long-standing brands and new entrants, there’s another — perhaps unexpected — group of players that has been increasingly investing in plant-based milk alternatives: dairy companies.

For example, Danone has owned the Silk and So Delicious brands since an acquisition in 2014, and long-standing U.S. dairy company HP Hood LLC launched Planet Oat in 2018.

Lactalis Canada also recently converted its facility in Sudbury, Ont., to manufacture its new plant-based Enjoy! brand, with beverages made from oats, almonds and hazelnuts.

“As an organization, we obviously follow consumer trends, and have seen the amount of interest in plant-based products, particularly fluid beverages,” said Mark Taylor, president and CEO of Lactalis Canada, whose parent company Lactalis is the largest dairy products company in the world.

The facility was a milk processing plant for six decades, until Lactalis Canada began renovating it in 2022. It now manufactures not only the new brand, but also the company’s existing Sensational Soy brand, and is the company’s first dedicated plant-based facility.

“We’re predominantly a dairy company, and we’ll always predominantly be a dairy company, but we see these products as complementary,” said Taylor.

It makes sense that major dairy companies want to get in on plant-based milk, said Gregoire. The dairy business is large — a “cash cow,” if you will — but not really growing, while plant-based products are seeing a boom.

“If I’m looking for avenues of growth, I don’t want to be left behind,” he said.

Gregoire said there’s a potential for consumers to get confused with so many options, which is why it’s so important for brands to find a way to differentiate themselves, whether it’s with taste, health, or how well the drink froths for a latte.

Competition in a more crowded market is challenging, but Taylor believes it results in better products for consumers.

“It keeps you sharp, and it forces you to be really good at what you’re doing. It drives innovation,” he said.

This report by The Canadian Press was first published Sept. 15, 2024.



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