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'Worse than Sept. 11, SARS and financial crisis combined': Canada's tourism industry in crisis – CP24 Toronto's Breaking News

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In the aftermath of the COVID-19 pandemic, Canada’s tourism industry is facing a crisis greater than the combined impacts of Sept. 11, 2001, the SARS outbreak and the global financial crisis, according to a new report.

The depth of the crisis means it will be a long recovery for the tourist industry with potential shock waves for other areas of the economy, says Destination Canada, a Crown corporation whose mandate is to promote domestic tourism. The agency compiled new data for the report to be released Monday on an industry that is linked to one in 10 Canadian jobs, Destination Canada says.

“Tourism has a ripple effect into so many other parts of our quality of life as Canadians,” said Marsha Walden, president and chief executive officer of Destination Canada. “It’s one of those very few industries, maybe the only one, that can be found in every corner of this country.”

The report adds a new dimension to discussions about the pandemic’s uneven effects across different regions and sectors of the Canadian economy, for which limited data had previously been available. It also sheds light on the amount of time needed for certain key areas of Canada’s economy to recover.

Overall, the number of “active” businesses — one that is operating and has employees — in the sector declined by nine per cent between January and November of last year. Half a million people in the tourism industry lost their jobs in 2020, Walden said.

Within the tourism sector, travel services saw the biggest drop in active businesses with 31 per cent fewer firms operating. Rail, scenic and sightseeing transportation saw the second-biggest drop with a 14.9-per-cent decline.

The hotel industry suffered throughout 2020, with losses concentrated in Montreal, Toronto and Vancouver, whose downtown hotels had the lowest occupancies of any region in Canada. Revenues for hotels in those three cities fell 79 per cent in the last year for a total loss of $2.3 billion across the three cities, the report says.

To compile the data used in the report, Destination Canada conducted original research and relied on information from government and industry reports, Walden said.

The report doubles as a call to action for Canadians to offset the damage to the country’s tourism industry by taking domestic vacations once the public health situation improves. If enough Canadians shift their international travel plans to focus on domestic destinations, that could speed up recovery for the tourism sector by up to one year, the report states.

Without any major change in consumer spending habits, it would take five years for the industry to reach pre-pandemic levels, the report says. But reallocating two thirds of the dollars spent on international travel in 2019 to domestic travel would replace the estimated $19.4 billion shortfall in the industry in 2020 and sustain more than 150,000 jobs, the report says.

“Canadians have been sitting at home, saving a lot of money this year, which is great for individuals and not so great for the economy,” Walden said. “We really need them to get out there and travel the country and spend money across the country once it’s safe to do so.”

Guidatour, which sells walking tours of downtown Montreal and other areas, is one of the small tourism-dependent businesses whose revenues plummeted last year as its usual customer base of international tourists disappeared. The company’s revenues were down 95 per cent last year, said the company’s owner, Angele Vermette.

Prior to the pandemic, Guidatour employed eight people full-time and had a network of about 100 tour guides that worked on a freelance basis, Vermette said.

Guidatour sometimes arranged more than 100 tours per day, but during the pandemic there were often days when it didn’t give a single one, Vermette said.

“These are passionate people that love their job,” Vermette said. “Being a tour guide, you don’t do that for your retirement, you don’t do that for the pay, you do that because you love history and you love tourism, you love your city.”

Improving economic activity in Canada’s downtown centres, where Guidatour primarily operates, will be key to a recovery for the tourism sector as a whole, Walden said, because visitors to a region typically travel first to a city core before continuing on to other areas.

Vermette said her staff have been working on developing new programming, some of which could also appeal to locals, in order to capitalize on any uptick in travel later this year. With the rollout of the vaccine, Vermette said she was hopeful that Guidatour would have more customers this year, but she noted that sales still won’t be close to what the company saw in 2019.

Similarly, Frontiers North Adventures, a family-owned business that offers tours to Churchill, Man., where visitors can see local attractions like polar bears and beluga whales, has been changing its offerings to appeal to Canadians looking to take domestic vacations this year.

In the past, around 80 per cent of the company’s customer base has been made up of foreign travellers, who begin the tour in Winnipeg before flying to Churchill, said John Gunter, the company’s president. But anticipating another weak year for international travel, the company is adding flights to Churchill directly from Calgary and Montreal in the hopes of tapping into the domestic market for northern adventures.

“We had to rejig our offerings to be more attractive to domestic and local audiences,” Gunter said. “If we have only Winnipeg to rely on, then it’s going to be another year of losses.”

This report by The Canadian Press was first published March 7, 2021.

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Factbox-Latest on the worldwide spread of the coronavirus

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(Reuters) -A recent surge in COVID-19 cases could see major parts of Japan slide back into states of emergency with authorities in Tokyo and Osaka looking at renewed curbs, while quarantine-free travel started between Australia and New Zealand for the first time in more than a year.

DEATHS AND INFECTIONS * Eikon users, see COVID-19: MacroVitals https://apac1.apps.cp.thomsonreuters.com/cms/?navid=1592404098 for a case tracker and summary of news.

EUROPE

* The number of coronavirus patients in intensive care units in France edged up on Sunday, amid a nationwide lockdown to try to stem a third wave of infections.

* British scientists launched a trial which will deliberately expose participants who have already had COVID-19 to the coronavirus again to examine immune responses and see if people get reinfected.

* Italy will ease curbs in many areas from April 26, warning caution was still needed to avoid any reversals in the reopening of many long-shuttered activities.

AMERICAS

* Just more than half of U.S. adults have now received at least one COVID-19 vaccine dose, data from the U.S. Centers for Disease Control and Prevention showed on Sunday, with nearly 130 million people aged 18 years or more having received their first shot.

* Dr. Anthony Fauci on Sunday predicted that U.S. health regulators will end the temporary pause on distributing Johnson & Johnson’s COVID-19 vaccine, adding he expects a decision could come as soon as Friday.

* Canada will present a budget with billions of dollars for pandemic recovery measures as COVID-19 infections skyrocket, C$2 billion ($1.6 billion) toward national childcare, and new taxes on luxury goods.

* The Canadian province of Ontario will begin offering AstraZeneca’s COVID-19 vaccine on Tuesday to people turning 40 or older this year.

* Venezuelan President Nicolas Maduro said on Sunday the government has made a second payment to the World Health Organization’s COVAX initiative to access around 11 million COVID-19 vaccines.

ASIA-PACIFIC

* India’s capital New Delhi recorded 25,500 coronavirus cases in a 24-hour period, with about one in three people tested returning a positive result, its chief minister said, urging the federal government to provide more hospital beds to tackle the crisis.

* Pfizer CEO Albert Bourla has agreed to Japanese Prime Minister Yoshihide Suga’s request to supply additional doses of the COVID-19 vaccine, the vaccine minister of Japan said on Sunday.

MIDDLE EAST AND AFRICA

* The coronavirus variant discovered in South Africa can break through the protection provided by Pfizer and BioNTech’s COVID-19 vaccine to some extent, a real-world data study in Israel found.

* Vaccination against COVID-19 is a requirement to perform the Umra pilgrimage to Mecca, Saudi state TV said on Sunday, citing a government official.

* Tunisia on Saturday announced the closure of all schools until April 30, as well as restrictions on movement, to slow the spread of the novel coronavirus.

MEDICAL DEVELOPMENTS

* China’s Sinovac COVID-19 vaccine was 67% effective in preventing symptomatic infection, data from a huge real-world study in Chile has shown, a potential boost for the jab which has come under scrutiny over its level of protection against the virus.

ECONOMIC IMPACT

* Asian shares hovered near 1-1/2 week highs on Monday, helped by expectations monetary policy will remain accommodative the world over, while COVID-19 vaccine rollouts help ease fears of another dangerous wave of coronavirus infections. [MKTS/GLOB]

(Compiled by Krishna Chandra Eluri, Devika Syamnath and Milla Nissi; Edited by William Maclean, Anil D’Silva and Subhranshu Sahu)

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New Zealand says ‘uncomfortable’ with expanding Five Eyes

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SYDNEY (Reuters) – New Zealand said it is “uncomfortable” with expanding the role of the Five Eyes, a post-war intelligence grouping which also includes the United States, Britain, Australia and Canada, recently criticised by China.

China is New Zealand’s largest trading partner, and Foreign Affairs Minister Nanaia Mahuta said in a speech that New Zealand sought a predictable diplomatic relationship.

New Zealand will find it necessary to speak out on issues where it does not agree with China, including developments in Hong Kong and the treatment of Uyghurs in Xinjiang, she said in a speech on Monday to the government-funded New Zealand China Council.

In later comments to media reported by New Zealand’s Newshub, Mahuta said New Zealand didn’t favour invoking the Five Eyes for “messaging out on a range of issues that really exist out of the remit of the Five Eyes”.

“We are uncomfortable with expanding the remit of the Five Eyes,” she said.

China’s foreign ministry has repeatedly criticised the Five Eyes, after all members issued a joint statement about the treatment of Hong Kong pro-democracy legislators in November.

Last month, Chinese foreign ministry spokeswoman Hua Chunying said “the Five Eyes have taken coordinated steps to gang up on China”, after Australia and New Zealand issued a joint statement on Xinjiang.

Last year, the Five Eyes discussed cooperation beyond intelligence sharing, including on critical technology, Hong Kong, supply chains and the COVID-19 pandemic, according to a statement by Australia’s Foreign Minister Marise Payne in 2020.

Mahuta’s office told Reuters it couldn’t provide a copy of her comments on the Five Eyes.

Payne will travel to New Zealand on Wednesday for meetings with Mahuta and Prime Minister Jacinda Ardern, the first diplomatic visit between the neighbouring countries since borders reopened both ways.

Canberra has recently endured a rockier relationship with Beijing than Wellington, with Australia’s trade minister unable to secure a call with his Chinese counterpart as exporters were hit with multiple trade sanctions from China.

A diplomatic dispute between China and Australia worsened in 2020 after Canberra lobbied for an international inquiry into the source of the coronavirus pandemic.

China and New Zealand upgraded a free trade agreement in January, when, Mahuta said, trade ministers had held a “constructive” call.

 

(Reporting by Kirsty Needham; Editing by Michael Perry)

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Australia to hold inquiry to examine military suicides

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By Colin Packham

CANBERRA (Reuters) – Australia will hold a Royal Commission to examine suicides among serving and former military personnel, Prime Minister Scott Morrison said on Monday, bowing to public pressure to find ways to stem a mounting toll.

More than 500 have died from suicide since 2001, government data shows, a statistic that has fuelled public anger, including among the prime minister’s own Liberal party.

“I think and I hope it will be a healing process,” Morrison told reporters in Canberra, as he announced his call for a commission to be set up.

“I hope it will be a process by which veterans and families can find some comfort, but it obviously can’t replace the loss.”

The issue became prominent in Australia following a high-profile campaign by Julie-Ann Finney, whose son David, a former naval petty officer, committed suicide in 2019 after he had earlier been deployed to Iraq, East Timor and Bougainville.

Australian troops have been involved in conflicts in Iraq and Afghanistan, and deployed for humanitarian missions in the Pacific.

The United States, Britain and Canada are also exploring ways to reduce suicide rates among serving and former military personnel.

Morrison said he hopes the Royal Commission will begin hearings later this year. Final recommendations are expected in 2023, he said. A permanent national commissioner will be tasked with ensuring the recommendations are enforced.

 

(Reporting by Colin Packham; Editing by Simon Cameron-Moore)

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