B.C. tourism industry seeks $680M in COVID-19 stimulus funding

VANCOUVER (NEWS 1130) — The unprecedented impact of COVID-19 on the industry has led to B.C.’s tourism sector asking the provincial government for hundreds of millions of dollars in support.

The Tourism Industry Association of BC (TIABC) submitted a report requesting $680 million in stimulus funding from the province’s $1.5-billion recovery package to help mitigate the pandemic’s effect on the tourism and hospitality sector and and help rebuild the industry.

Since the industry is dependent “on the movement of people” it has been severely impacted by travel restrictions and closed borders, according to TIABC.

Walt Judas, CEO of TIABC, says the funding is desperately needed.

“Paritcularly, since our revenues this year are anticipated to be about one-third of what they were last year,” he says.

B.C.’s tourism sector typically generates about $20 billion in revenues, based on data from 2018, and employs about 300,000 people in the province.

“We still have travel restrictions in place, and tourism operators are being hit this year and that will likely continue for the remainder of 2020,” Judas says.

Even as B.C. entered into Phase 3 of its Restart Plan in June, many businesses have only partially reopened while supply chains have been disrupted. 

The requested funding is broken down into three categories: $475 million for operating grants over the next 18 months, $190 million for costs adpating to COVID-19 realities, and $15 million for supply chain upgrades.

“Our analysis projects that this aid will maintain more than 75% of pre-pandemic direct employment in tourism businesses,” the report says. “Cost is therefore less than $4,000 per job, which compares very favourably with the levels of support from government for other B.C. industries.”

TIABC says the upgrades for about 19,000 tourism businesses in B.C. will cost roughly $10,000 each. It also suggests the funding will help maintain jobs and increase employment.

Judas says upgrading supply chains is to resource where businesses get their supplies to operate.

“And a lot of those supplies are made overseas and shipped in. It’s easily done that we could source those supplies locally,” he says.

Nearly all, (97 per cent) of businesses in the B.C. tourism industry aren’t breaking even or making a profit, according to the report, while 41 per cent expect to suffer even if travel is encouraged.

RELATED: B.C. tourism picks up despite closed borders during COVID-19 pandemic

Vivek Sharma, chair of TIABC, says the current funding for the economy is appreciated and helpful, but not enough to sustain the hospitality industry through the pandemic.

“The only way we can prevent generations of lost economic activity, jobs, and tax revenues is by acting decisively now with innovative and creative solutions that recognize the importance of this sector, which is the face and brand of British Columbia to the world and one of the strongest drivers of B.C.’s economy.”

The report has been submitted for review.