TORONTO —
Many snowbirds who flock to sunny southern destinations have already indicated that they plan to extend their travels until the federal government eases travel restrictions, according to one expert.
Travel insurance broker Martin Firestone of Toronto’s Travel Secure Inc. says as soon as the newly imposed federal provisions were announced, he heard from many people looking to extend their trips.
“My phone was blowing up with people calling and saying they wanted nothing to do with a three-day hotel quarantine ‘nightmare,’ is what they positioned it as,” Firestone told CTVNews.ca on Saturday.
“The majority of snowbird property owners will extend their trips and avoid the quarantine. The quarantine to them is like a curse and they want nothing to be apart of this whatsoever.”
On Friday, Prime Minister Justin Trudeau said all arrivals into Canada must quarantine in an approved hotel for up to three days, pending the results of a COVID-19 test taken at the airport. The rules are expected to come into effect in the coming weeks and will cost $2,000 per person.
Trudeau said the restrictions are meant to discourage non-essential travel and reduce the spread of COVID-19 and its variants.
Firestone says some travellers see the move as heavy-handed.
“You can’t imagine how it’s being received – nobody wants to be apart of it,” he said.
As a result, he said, hundreds of his clients plan to extend their stays abroad until the restrictions ease.
“The majority of my client base will not come back to face hotel quarantine,” he said.
He said typical snowbirds leave Canada in November and return in April. The newly imposed travel provisions are in place until April 30.
The government has also banned all flights to the Caribbean and Mexico. There is, however, a loophole where travellers can still fly to restricted destinations via the United States. Firestone says he strongly discourages this as he expects the U.S. government to impose strict travel measures and Canadians will still have to isolate upon their return.
Travel insurance is another issue facing Canadians who are already out of the country as it will likely need to be extended.
“The problem is if you have already claimed or are not feeling well, and you’re seeing a doctor, you will not get an extension. The dilemma there, is to be in the United States without any insurance is a scary thought,” he said.
Firestone says that leaves snowbirds with few choices as insurance brokers aren’t likely to offer coverage for all travellers amid a global pandemic. Not only are Canadians endangering their own lives, but they are endangering the lives of others.
PART-TIME RESIDENTS
Firestone says his biggest fear is someone being denied health care at an overwhelmed hospital in the United States, or not being able to afford the cost of health care should they fall ill with COVID-19.
“It’s a scary thought if you can’t get looked after, and if it’s something that needs immediate attention you could be in big trouble,” said Firestone.
Many of Firestone’s clients have told him that they have been successful in getting their first and second COVID-19 vaccination. Currently, Florida is offering vaccinations to anyone 65 and older during its first phase of its vaccine rollout. While the state opposes visitors who come specifically to get the shot, foreigners who own property in Florida and can provide proof are welcome to get vaccinated.
“The Canadians argue that they are taxpayers who support the economy five months of the year and they too should be available for the vaccine – so why not,” Firestone said.
There are also snowbirds who have been able to make the transition to working from home all while doing so from a tropical destination.
“That’s another reason why people can extend their stay, because there’s no delineation between their home in Canada and your home in Florida,” said Firestone.
Another implication that may arise for people abroad is the fact that Canadians are only permitted to stay up to 182 calendar days – or six months – outside of the country without paying income tax in another country, such as the U.S.
This could also result in further issues at home and risk consequences upon their return.
According to Ontario’s ministry of health, residents are able to travel outside of Canada for a total of 212 days in any 12 month period and still maintain OHIP coverage so long as their primary place of residence remains Ontario.
Bottom line, Firestone says, is it’s best to avoid travel at all costs.
“I do not recommend travel even though I sell travel insurance. My feelings are that this isn’t the year to travel,” said Firestone.
Demands for government intervention in Air Canada labour talks could negatively affect airline competition in Canada, the CEO of travel company Transat AT Inc. said.
“The extension of such an extraordinary intervention to Air Canada would be an undeniable competitive advantage to the detriment of other Canadian airlines,” Annick Guérard told analysts on an earnings conference call on Thursday.
“The time and urgency is now. It is time to restore healthy competition in Canada,” she added.
Air Canada has asked the federal government to be ready to intervene and request arbitration as early as this weekend to avoid disruptions.
Comments on the potential Air Canada pilot strike or lock out came as Transat reported third-quarter financial results.
Guérard recalled Transat’s labour negotiations with its flight attendants earlier this year, which the company said it handled without asking for government intervention.
The airline’s 2,100 flight attendants voted 99 per cent in favour of a strike mandate and twice rejected tentative deals before approving a new collective agreement in late February.
As the collective agreement for Air Transat pilots ends in June next year, Guérard anticipates similar pressure to increase overall wages as seen in Air Canada’s negotiations, but reckons it will come out “as a win, win, win deal.”
“The pilots are preparing on their side, we are preparing on our side and we’re confident that we’re going to come up with a reasonable deal,” she told analysts when asked about the upcoming negotiations.
The parent company of Air Transat reported it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31. The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
It attributed reduced revenues to lower airline unit revenues, competition, industry-wide overcapacity and economic uncertainty.
Air Transat is also among the airlines facing challenges related to the recall of Pratt & Whitney turbofan jet engines for inspection and repair.
The recall has so far grounded six aircraft, Guérard said on the call.
“We have agreed to financial compensation for grounded aircraft during the 2023-2024 period,” she said. “Alongside this financial compensation, Pratt & Whitney will provide us with two additional spare engines, which we intend to monetize through a sell and lease back transaction.”
Looking ahead, the CEO said she expects consumer demand to remain somewhat uncertain amid high interest rates.
“We are currently seeing ongoing pricing pressure extending into the winter season,” she added. Air Transat is not planning on adding additional aircraft next year but anticipates stability.
“(2025) for us will be much more stable than 2024 in terms of fleet movements and operation, and this will definitely have a positive effect on cost and customer satisfaction as well,” the CEO told analysts.
“We are more and more moving away from all the disruption that we had to go through early in 2024,” she added.
This report by The Canadian Press was first published Sept. 12, 2024.
