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Travel restrictions turn peak season into bleak season for tourism sector – CBC.ca
The May long weekend typically marks the beginning of the peak travel season within Canada, but border closures and travel restrictions have thrust the country’s tourism sector into what industry insiders are calling an unprecedented crisis.
A report commissioned by Destination Canada, a federal Crown corporation that encourages Canadian tourism, found that under the worst case scenario, travel spending could drop nearly 60 per cent this year which amounts to a $47 billion loss.
“It’s an industry in deep distress,” said Marsha Walden, the CEO of Destination BC, which usually markets the province to international travelers, but at the moment is encouraging people to stay home.
British Columbia’s tourism industry alone generated $18 billion in 2018. International tourists accounted for 25 per cent of all visitors, but they were responsible for 50 per cent of spending, according to Destination BC.
Walden spoke to CBC in front of the port at Canada Place in Vancouver which is locked off by a metal gate.
It is normally where cruise ships dock and passengers spill off, often to tour the area on paid excursions.
In 2019, more than 280 cruise ships docked in the city. The Port of Vancouver estimates that each ship and its passengers contributed roughly $3 million to the local economy.
An order by Transport Canada has banned cruise ships carrying more than 500 people from docking at Canadian ports until at least July 1.
While some cruises are still scheduled for later in the summer, B.C. health officials say passengers will not be able to disembark at the province’s ports.
“There are some very big parts of our industry that are missing,” said Walden. More than one million passengers were expected to arrive in the Port of Vancouver this year, she added.
Similar trends are playing out in other provinces who welcome large numbers of cruise ship passengers, including Nova Scotia.
Everyone has cancelled
Cruise ship passengers make up a bulk of Alfred Esmeijer’s business.
He runs A.E. Vancouver Private Tours and Charters Inc., and takes people through the city and across the province.
All of his customers for the summer have cancelled and he estimates that he has lost around $100,000 in bookings.
Esmeijer has been in business for 17 years and believes he can withstand a summer with no bookings, but he fears for the industry. In the last few years tourism has grown, and he says many companies have decided to invest and expand, and have debt.
“I foresee that quite a few companies will not survive and that will range from big to small.”
Bleak Summer
In Ontario, where there was $36 billion in tourism spending in 2017, the predictions are grim.
According to the Tourism Industry Association of Ontario (TIAO) spending in 2020 could drop by half, and more than 35 per cent of operators, including restaurants, hotels, and attractions, may go out of business.
“It is an industry that has been hit very hard and it is an industry that is going to take a long time to recover,” said Beth Potter, president and CEO of TIAO which has conducted five surveys to gauge their members’ concerns.
Potter said about 50 per cent of seasonal businesses expect that they won’t be able to reopen for the summer and those that do will be relying on visits from residents nearby
“It’s a hyper-local tourism demographic this year.”
‘Support local’
Tourism organizations including Destination Ontario and Destination BC will be encouraging people to explore their own provinces once restrictions are lifted.
The industry is hoping residents who have travel dollars to spend will be interested in vacationing closer to home.
Perched on the edge of a wind-swept beach in Tofino on Vancouver Island, sits the Wickaninnish Inn, which closed down temporarily March 18 and laid off about 90 per cent of its staff.
WATCH | Vancouver Island inn prepares for slow summer amid COVID-19:
In a typical summer, ocean-view rooms start at $600 a night and a significant amount of its clientele comes from overseas.
“With virtually zero international visitors…we are of course looking forward to welcoming British Columbians,” said Charles McDiarmid, the managing director for the inn.
He hopes to reopen in June and at first will only take bookings from residents of Vancouver Island, but will later expand to all residents of B.C.
Cheaper options
In Vancouver, a different kind of tourism operation is optimistic that it will also see a surge in local visitors over the summer.
The Bloedel Conservatory is a tropical garden enclosed inside a dome at the city’s Queen Elizabeth Park.
About half of its visitors are tourists there to see the tropical plants and exotic birds including cockatoos, parrots and macaws.
With adult admission costing just under $7, city officials hope local families weary of spending most of the past two months inside, will be looking for an affordable excursion.
The birds could use the company too.
“They are missing visitors right now,” said Emily Schultz from the Vancouver Park Board.
“So we know that when we reopen they will be very excited to see lots of different faces coming through.”
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We're still stockpiling reusable bags. Big grocers have adopted solutions, but experts have concerns – CBC News
Canada’s plastic bag ban has had an unintended consequence: a proliferation of reusable bags piling up in basements, closets and, eventually, landfills.
“They’re everywhere,” said environmental researcher Tony Walker. “We’re drowning in them, and we shouldn’t be.”
To combat the problem, several of Canada’s big grocers have introduced solutions. Last week, Walmart launched a free national recycling pilot program for the retailer’s reusable blue bags. Competitors Sobeys and chains owned by Loblaw Companies Ltd. use recyclable paper bags for grocery delivery.
But some environmental experts argue that paper bags are also problematic and that the best solutions are those that help customers actually reuse their reusable bags.
“We just can’t keep giving [them] out,” said Walker, a professor at Dalhousie University’s School for Resource and Environmental Studies in Halifax. “We’re only meant to have a few of them, and we’re meant to use them until they fall apart.”
In late 2022, the federal government rolled out a ban on the manufacture, import and sale of several single-use plastics, including checkout bags. The regulations are being contested in court, but in the meantime, they remain in effect.
The regulations have made single-use shopping bags scarce in Canada, but they’ve also led to the proliferation of reusable bags, especially for grocery delivery.
“It just creates more waste, which is what we’re trying to avoid in the first place,” Walmart customer Udi Sela said in a CBC News interview in late 2022.
At the time, Sela, who lives in Maple, Ont., estimated his family had acquired about 300 reusable Walmart bags via grocery delivery.
“We can’t return them, we can’t do much with them.”
Now, a little more than a year later, Walmart has launched a pilot project to address the problem.
It allows customers to pack up their unwanted reusable Walmart blue bags and ship them — at no charge — to a facility where they’ll get a second life.
How it works
According to Walmart, bags in good condition will be laundered and donated to charity, primarily Food Banks Canada. Damaged bags will get recycled into other materials. Reusable bags typically can’t go in blue bins because they’re costly and difficult to recycle.
Customers must sign up for Walmart’s program, and enrolment is limited.
Jennifer Barbazza, Walmart’s senior manager of sustainability, said the retailer will fine-tune the details as the program progresses.
“[We] know that some customers have more reusable bags than maybe they need,” she said. “One of the things that we’re really excited to learn about from the pilot is customer acceptance and customer feedback.”
Udi Sela has already signed up.
“I definitely think it’s a step in the right direction,” he said in an interview on Friday. “It’s something that needed to be done a while ago. God knows we’ve got a ton of bags kind of piled up.”
He said he’s concerned that some customers may find mailing the bags a hurdle. However, it’s not deterring Sela, who soon plans to ship hundreds.
Passing the buck?
Not everyone is keen on Walmart’s project. Emily Alfred, a waste campaigner with Toronto Environmental Alliance, said donating the bags to the food bank is just passing on the problem.
“We need to remove waste from the system entirely, and just sending these somewhere else for someone else to deal with is not really a solution,” she said.
Alfred said a better option is a program Walmart piloted in Guelph, Ont., in 2022. For a fee, customers could check out reusable bags from an in-store kiosk and later return them to be cleaned and reused.
“That’s a real circular reuse system,” she said.
Walmart’s Barbazza said the retailer is continuing to explore different reusable bag programs, including ones placed in stores.
She also said she’s confident Canada’s food banks will make good use of the bags.
“There’s definitely a need for sturdy items to distribute materials to the food bank clients.”
The paper problem
Among Canada’s major grocers, only Walmart offers a reusable bag program for all customers.
Loblaw recently switched from reusable to recyclable paper bags for grocery delivery. Sobeys did not respond to requests for comment, but according to its website, the grocer also uses paper bags and “reusable options” for home delivery.
Several environmental experts say paper bags aren’t a good solution, because their production leaves a sizable carbon footprint.
“Paper bags are a problem,” Alfred said. “It takes a lot of energy to recycle paper, takes a lot of trees and energy to make new paper.”
Loblaw said it continues to explore a variety of more sustainable solutions. “It’s a challenge we’re committed to addressing,” spokesperson Dave Bauer said in an email.
Both Walker and Alfred applaud Metro for its grocery delivery program, because the grocer, which operates in Ontario and Quebec, reuses delivery materials.
Metro said customers can get their goods delivered in a cardboard box or reusable bags, which can be returned and used for another delivery. Or customers can opt for a plastic bin and remove their groceries from it upon arrival.
Metro does not offer similar programs for in-store shoppers.
Alfred said the federal government should introduce regulations that mandate retailers adopt effective reusable bag programs for all customers.
“It’s up to our governments and people to demand that these companies do better,” she said.
But Walker suggested that the regulations would be hard to enforce and that incentives could be a better tactic.
For example, if retailers increased the price of reusable bags, shoppers might be less likely to forget them when they head to the store, he said.
“When the cost is a disincentive to do an activity, people change their behaviour.”
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CTV National News: Honda's big move in Canada – CTV News
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CTV National News: Honda’s big move in Canada CTV News
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Freeland defends budget measures, as premiers push back on federal involvement – CBC News
Deputy Prime Minister and Finance Minister Chrystia Freeland says she thinks unhappy premiers will come around on measures in the federal budget that touch on provincial legislation, even as they push back.
At an event in Toronto on Sunday, Freeland — who presented the federal budget on Tuesday — said the national government needs to push ahead on such issues as housing and she was “extremely optimistic” premiers would choose to co-operate.
“Housing is a national challenge, and the federal government needs to be leading the charge,” she said.
“My own experience has been when there are big issues that really matter to Canadians, after all the sound and the fury, people are prepared to roll up their sleeves and find a win-win outcome for Canadians.”
Several premiers have pushed back against the federal government in recent months and again after the budget was released on the grounds that some measures touch on provincial jurisdiction.
In a letter released Friday by the Council of the Federation, which represents the leaders of all 13 provinces and territories, the premiers said Ottawa should have consulted them more ahead of the budget.
Individual premiers have shared more pointed critiques.
“It’s a never-ending spending platform that we’ve seen now for the last 10 years,” New Brunswick Premier Blaine Higgs said on CBC’s Power & Politics on Friday.
“My initial thoughts about the federal budget are that they are overtaxing, overspending, overborrowing and over interfering in provincial affairs,” Alberta Premier Danielle Smith said earlier this week.
Alberta has clashed with the government repeatedly over housing. Smith introduced legislation earlier this month that would require provincial oversight of deals made between municipalities and the federal government, including for future agreements around federal housing funds.
Freeland said on Sunday that, as an example, the federal child-care program negotiated through a series of deals with provinces and territories showed that co-operation was possible.
Capital gains tax changes criticized
The federal government has also faced some opposition on what was perhaps the most prominent measure revealed on budget day: changes to Canada’s capital gains tax rules. The government has proposed raising the inclusion rate to 67 per cent on capital gains above $250,000 for individuals.
“The 21st-century winner-takes-all-economy is making those at the very top richer, while too many middle-class Canadians are struggling,” Freeland said Sunday, adding the government was asking wealthy Canadians to pay their “fair share.”
“We do need to ensure that we have some revenue coming in. This is a very limited way of ensuring that that occurs,” Treasury Board President Anita Anand said in an interview on Rosemary Barton Live on Sunday.
Critics have raised concerns that the changes could result in reduced investment or capital flight.
“The big concern right now … is this going to have a detrimental impact to the progress we’re trying to make in making Canada a hub for innovation,” said Kirk Simpson, CEO of the tech company goConfirm, in a separate interview on Rosemary Barton Live.
“With productivity the way that it is, we want more capital, not less, flowing into business innovation,” Simpson told CBC chief political correspondent Rosemary Barton.
Freeland said Sunday that the changes will affect very few Canadian individuals — the government estimates 0.13 per cent — and the revenue will go to pay for investments in areas like housing.
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