HOW THE FEDERAL BUDGET AFFECTED TRAVEL

For Canadians fed up with air-travel disruptions the Federal government says help is on the way. However, travellers will also face higher airport security fees in 2023, according to this week’s budget. And as for help for travel retailers, ACTA says simply it is “discouraged but not surprised.”

Here are some of the measures introduced:

Air travel: Following months of complaints and horror stories from frustrated air travellers, the government says it is taking action. The budget promises $1.8 billion over five years to improve airport operations and passenger screening, and to address a backlog of complaints to the Canadian Transportation Agency. It is also proposing to strengthen the rules around compensation for Canadians whose travel plans are disrupted, and to give the CTA more authority to resolve passenger complaints.

Travellers security charge: Canadians looking to take a flight next year will face an increase in the air travellers security charge paid by those flying in Canada starting on May 1, 2024. The charge for a domestic round trip will rise to $19.87, from its current rate of $14.96. The charge for a transborder flight to the US will rise to $16.89 from $12.71, while for departing international flights travellers will pay $34.42, up from $25.91. The charges which help pay for the air travel security system and were last increased in 2010.

Fees and loans: The government says it will amend the Competition Act to better protect Canadians from hidden fees that include as excessive baggage charges and roaming fees.

ACTA

Meanwhile, ACTA, which engaged in a pre-budget lobbying effort (including letter-writing campaign) with other travel and tourism organizations like TIAC seeking help for the sector, said it was, “discouraged but not surprised by today’s federal budget as all indications leading up to the budget were that it would be an austerity budget based on the current economic environment and the massive relief expenditures during the pandemic.”

ACTA says it is concerned that there are ongoing critical issues that affect travel agencies and travel advisors – especially debt relief from pandemic support – and will continue to “lay the groundwork for debt relief and ramp up grassroots advocacy efforts at the appropriate time.”

The association says it is conducting a thorough review of the budget to identify any other items that are perhaps not top of mind but still could provide some relief or opportunity for travel agencies.