Calling the circumstances “mission critical,” the Canadian Association of Tour Operators (CATO) and Association des Tours Opérateurs du Québec (ATOQ) are requesting urgent government action and financial support for their struggling members. Foremost, say the industry associations, is an extension of the Canada Emergency Wage Subsidy (CEWS) at the current level until at least the end of the year.
The associations, acting together, are also urging clear federal guidelines and timelines ahead of international travel resuming, stating that “millions of Canadians work in tourism-related industries, yet tour operator members have not been provided the fundamentals their industry sector needs to survive.”
Lack of such guidelines, they add, will create “prolonged duress for the industry” due to the pandemic.
To detail their significant contribution to the Canadian economy and devastating impacts of the COVID-19 on members, CATO and ATOQ have released an Economic Impact Assessment Report.
Among its findings are that the Canadian travel industry has seen revenue fall to 82% below pre-pandemic levels in 2019 and widespread permanent and temporary layoffs, the latter particularly affecting women, who make up 73% of the workforce.
CATO and ATOQ note that six-month average booking lead times mean “this will be the case for many months to come.”
They add that in Ontario and Quebec, all revenue generated from bookings is held in trust until trips depart, meaning the funds cannot be used to pay wages or travel agent commissions, which typically return millions of dollars to the government through payroll taxes (income tax, CPP, EI and EHT). Moreover, “Without an extension of CEWS to CATO and ATOQ members, their segment of the industry will have no choice but to lay-off more individuals or permanently let go of employees.”
The associations explain that Canadian tour operators also need at least six months to prepare and bridge the gap between the opening of international borders and earning any revenue. Along with securing guests’ accommodations, flights, tour guides, sightseeing excursions, etc., they also need to co-ordinate health and well-being protocols in the new post-pandemic world of travel.
“CATO and ATOQ tour operator members truly appreciate the federal government’s Canada Emergency Wage Subsidy (CEWS), which enabled us to retain employees during the COVID-19 pandemic,” says CATO chair Brett Walker (Collette). “However, we were nonetheless forced to lay-off almost 30% of our collective workforce, so we are fighting for our survival.
“With average advanced bookings made six months prior to departure and borders still closed, there will be little, if any, return to international travel before 2022. With CEWS running out, the only means to bridge the gap and save thousands of jobs is for the government to extend CEWS at the current level for our members, and those hardest hit, until the end of 2021.”
Established in 1986 and 2002 respectively, CATO and ATOQ are composed of professional tour companies represented by owners and senior executives who are advocates in supporting their industry sector.