This week marks the first week of summer, but many businesses in the area aren’t feeling particularly optimistic about the biggest tourist season of the year.
While many costs continue to rise for businesses in the region, Duncan Robertson, senior policy analyst at the Canadian Federation of Independent Business, said companies generally aren’t expecting a similar increase in revenue.
“When we reached out to small business owners in the tourism industry and asked them how they expected the tourism season to go this summer, we found that unfortunately, eight in 10 businesses are not expecting an increase in revenue compared to last year,” Robertson said in an interview with CTV’s Todd Battis on Wednesday.
“The concern is because costs are rising across the board. Payroll taxes and wage costs are rising, carbon taxes are rising, capital gains taxes are coming into effect that are expected to affect about half of small businesses across Canada. Revenues are not keeping up with the increased costs.”
Robertson said there are a number of factors contributing to the problem.
“When you look at demand, roughly 55 per cent of hospitality businesses across Canada are citing lack of demand as an issue, and six in 10 retail businesses, so if they can’t bring in customers, it’s going to be even harder to cover those costs,” he said.
“Additionally, the higher cost of living is also playing a role and if you look across Atlantic Canada, you’re seeing a slight relaxation in travel to the Atlantic provinces.”
Robertson said the slowdown in travel between Atlantic states is also a major concern for businesses.
“In Nova Scotia, for example, 44 per cent of our tourists come from other Atlantic provinces, so when we see these declines in tourism, it’s of great concern. We’re working really hard to get back to pre-pandemic tourism levels.”
Although summer has officially begun, Robertson says there’s still a lot that can be done to help small businesses make the most of this tourist season.
“Tourist seasons often overlap with construction seasons, and we want to ensure that small businesses affected by major construction seasons and issues have access to financial support from the municipality, which has been an issue,” he said.
“We need support from the municipal side, but there’s other support out there too. It’s great to see the province looking at reducing provincial fuel taxes, giving back the carbon tax refunds that the federal government promised and providing about $70 million in support to small businesses.”
Still, he acknowledges that one of the biggest impacts on businesses is the weather, something they can’t control.
“Weather plays a big role, and especially if you’re in the hospitality industry, especially if you’re a restaurant with a patio, you’re going to be looking at patio season to save up some cash to get through the winter,” Robertson said.
“It’s certainly a concern for events like the Harbour Hopper in Halifax or the Harbour Hippo in Prince Edward Island because if the weather is bad it’s hard for these businesses to get the turnout they would like.”
With files from CTV’s Todd Battis.
