YEAH, BUT…: You can’t please everyone

Ottawa’s announcement that starting July 5 that fully vaccinated travellers who are eligible to enter Canada will be able to do so without having to quarantine, was met with a tepid response from the travel industry. Allowing that it’s a step in the right direction, the industry says the new measures don’t provide enough clarity on what travel will look like this summer.

The new measures cover Canadian citizens, permanent residents and people registered under the Indian Act and require proof of vaccination and a negative COVID-19 test to bypass the current quarantine and testing rules.

Mike McNaney, CEO of the National Airlines Council of Canada, says the government’s approach has been a series of “piecemeal” announcements that don’t provide a comprehensive plan on how vaccination will be proven or rules for partially or unvaccinated travellers.

McNaney also says Canada needs to have a restart plan in place or it could face the loss of market share and investments to other places that are better able to quickly and safely open their borders.

The Association for Canadian Travel Agencies (ACTA) said in a statement it “was disappointed that the federal government reiterated its position that Canadians should avoid all non-essential travel. ACTA will aggressively lobby the government to extend federal business support programs and ease travel advisories and restrictions.”

“While today’s news is a welcome step forward for Canada’s travel industry,” said Wendy Paradis, President, ACTA, “unfortunately, continued non-essential travel advisories and restrictions offer little hope of recovery this summer. Diminishing federal support programs starting this July, including CEWS, CERS and CRB, means Canada’s 24,000 travel agents will be at risk of unemployment and bankruptcies.”

Federal support programs have been vital to travel agencies, travel agents and independent travel agents, with the majority experiencing over 95% revenue losses compared to 2019. Over 800 store-front travel agencies have closed since the start of the pandemic, and travel agent businesses have laid off or furloughed 63% of staff, despite federal support programs.

The planned reductions of federal support programs means that most travel agent businesses will have continued monthly losses, even with potential increases in travel demand. Meanwhile, agencies continue to manage government-mandated ticket refunds and future travel credits for no revenue.

“Travel agencies have been operating at a loss since the beginning of the pandemic,” says Paradis. “Without continued full federal support for at least the summer, many will close. Businesses can only survive monthly losses for so long.”

Despite falling COVID case-counts and one of the world’s most successful vaccination programs, the federal government has not published a science-based plan on easing travel advisories and restrictions.

“Travel agent businesses need clear guidance from the federal government on when travel advisories and restrictions will ease,” says Paradis. “To support recovery, the government must issue metric-based guidance telling businesses when travel advisories and restrictions will be reduced and removed. This guidance would specify what measures would be reduced or removed based on community case and vaccination rates.” “And, until travel advisories are lifted and borders are fully opened, travel agencies, travel agents and the entire Canadian travel industry require continued and enhanced financial support.”