C-19 BULLETIN - August 7, 2020

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CEO Message

For the first time in months I attended a face-to-face business meeting. No Zoom or phone call but an actual get together with three of us comfortably seated far enough apart to hear each other but adhering to proper social distancing protocols at the same time. While I enjoy working from the comfort of my den, it was nice to be in an actual office environment and welcomed by none other than my local MLA.
 
As you know, TIABC and other sector association partners have been encouraging all of our respective members and stakeholders to reach out to their local MLAs to press for further government support as outlined in the recent TIABC recovery submission. Mine was only too happy to meet in person.
 
Aside from a quick catch-up on our extra-curricular summer activities within BC, we talked about the state of the province’s visitor economy and why a recovery package is so important to ensure our sector has a fighting chance of survival beyond 2020.
 
I was able to share the good, the bad and the ugly of how COVID-19 has impacted tourism and hospitality so far this year…although the good was confined to a few stories of resolve, determination, collaboration and acts of generosity on behalf of individuals and operators in the face of tremendous adversity.
 
Among many things, we talked about what the visitor economy means to BC; how it has helped build communities in every corner of the province; how it has given many young people their first jobs; how it’s a major employer of women and Indigenous peoples; how it has generated significant economic benefits and tax revenues to all levels of government; and most importantly, how a healthy visitor economy is paramount to a thriving British Columbia.
 
We also talked at length about the problems operators are facing this year; what government measures have worked and which haven’t; what data we’re collecting that illustrates how many businesses are on the cusp of closing; and how tourism and hospitality was the first and hardest hit sector and likely the last to recover. Hence the reason a lifeline from government is essential to get to the other side of COVID-19.
 
As we’ve been saying for several months, without a significant government investment, we’ll be in even deeper trouble come fall especially since the Welcome to British Columbia sign remains somewhat hidden to any prospective out-of-province visitor for the foreseeable future.
 
I was assured by my MLA that everyone from Premier Horgan and cabinet, to individual MLAs, ministries and bureaucrats understands the importance of the visitor economy and the need for help. I’m not so sure but can only take her at her word.
 
Regardless, we cannot afford to take our foot off the gas and therefore need to continue individually and collectively connecting directly with politicians now to request help for tourism and hospitality leading up to a decision by government on where best to allocate its $1.5 billion recovery package.
 
If you haven’t done so already, phone, email, text, write...or better still…meet in-person with your local MLA as I did. The future of BC's visitor economy depends on it. 

Walt Judas
CEO, TIABC
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The Thompson Okanagan Tourism Association is pleased to once again bring you Friday Fast Facts providing an ongoing snapshot of how the tourism industry is being impacted as a result of COVID-19 and an overview of how things are changing as we begin moving through these first stages of recovery. 

We will continue to gain and share business intelligence and insights which come directly from tourism stakeholders in our region via telephone and online surveys; data from our partnership with Environics Analytics received and analyzed weekly, and additional research has been sourced through the UN World Tourism Organization, Destination Canada, Destination BC, British Columbia Regional Tourism Secretariat, BC Hotel Association, go2HR, Community DMO Partners, and others.

Now more than ever we understand the importance of providing timely data that will assist you in making informed decisions, understanding how industry and consumers are responding, both in the Thompson Okanagan and the province as a whole, and that will assist you in making adjustments to how you do business.

Watch for Friday Fast Fact bi-weekly and for more information check out Research Spotlight on TOTA News Centre.

Thompson Okanagan Tourism Association is proudly supported by the British Columbia Ministry of Tourism Arts and Culture.

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Greater Victoria Area Mayors Concerned about Tourism Business Viability

Twelve Mayors from the Greater Victoria area have written to the Honourable Melanie Joly, Minister of Economic Development and Official Languages outlining their concerns for tourism businesses in the area.

As the letter outlines, the Regional Relief and Recovery Fund (RRRF) was designed to help mitigate the unprecedented and unforeseeable financial pressures experienced by businesses and organizations due to COVID- 19, as well as allowing businesses, organizations and communities to prepare for a successful recovery.

This program is delivered through the regional development agencies, and when it was announced it created optimism for many working in the tourism industry in our region. Unfortunately, it has become clear that the parameters of the program - which focus on rural areas and non tourism economic sectors in Western Canada - exclude the vast majority of, if not all, businesses within the Greater Victoria visitor economy. Urban-based operators such as those in Greater Victoria are among the hardest hit because drivers of revenues such as vital conventions and 'gateway' services to cross-border travel have ceased (cruise ships, ferries from Washington State, etc.). This urban infrastructure also underpins the broader economy and is essential for the larger industry to operate, provide jobs, contribute to taxes and succeed. If urban operators do not survive the very core of the visitor economy will be eroded and there will be no way for future travelers to access rural tourism opportunities.

As mayors in a region where the visitor economy is integral to job creation and community identity, they request that Western Economic Diversification Canada amend the eligibility criteria of the RRRF to include businesses located in urban areas as well as those operating in the Western Canadian visitor economy. Furthermore, most funding allotted to the RRRF envelop has been committed. Funding to the RRRF envelop should increase to ensure tourism business operators can receive funds through the program. Accessing RRRF will help Greater Victoria's tourism businesses continue operations, remain solvent and create a foundation to capitalize on economic recovery in the months ahead. This will tremendously benefit the Greater Victoria communities and the many jobs and the families who depend on this industry to thrive.

Download the letter here
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Review of Recall Rights in BC's Hotel Sector

Harry Bains, Minister of Labour, has appointed Sandra Banister, QC, to conduct a review of layoff and recall rights of unionized workers in British Columbia’s hotel sector as a result of COVID-19.

With this appointment, Banister will use her expertise of the Labour Relations Code and work with employers and unions and other relevant organizations to determine what steps are being taken to address issues around layoff and recall in the hotel sector.

Banister has practised labour law and civil litigation for more than 35 years. She regularly appears at all levels of court in British Columbia, labour arbitrations, the British Columbia Labour Relations Board and the BC Human Rights Tribunal.

The goal of the review is to support employers and hotel unions to come together and find solutions to issues around layoff and recall rights due to COVID-19. Banister will provide a report which summarizes her findings to the minister of labour by August 20th.
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Airline Update

The spread of COVID-19 has resulted in much of British Columbia’s air services being suspended. In some cases, these flights represented communities’ only link to the outside world, the suspension of which has resulted in hardship for many. The BC Aviation Council has produced a brief update on the network plans of some of BC’s largest airlines, with the hope of underscoring the slow, but encouraging growth in connectivity.

Air Canada
Canada’s largest carrier has been slowly but surely rebuilding its network in British Columbia. As shown in the animation below, Air Canada opted to retain five pillar routes throughout the pandemic, which includes Vancouver to each of Terrace, Prince George, Kelowna, Victoria and Nanaimo. June saw the return of services to Fort St. John, Kamloops and Prince Rupert, while July marked the reintroduction of flights to Smithers. Finally, service to Penticton and Cranbrook will be restored in August, and the airline plans to return to its remaining pre-COVID destinations of Sandspit, Comox and Castlegar by September.

WestJet
WestJet has taken a similar, though more conservative approach to its network in BC. The Calgary-based airline retained intra-BC services to Terrace, Prince George, Kelowna and Victoria. However, it opted to hold off on returning service to additional communities until August, when flights to Fort St. John resume. As it currently stands, the remainder of WestJet’s BC network is slated to restart operations in September.

Air Transat
After spending over four months grounded, Air Transat resumed operations on July 23rd. Of its significant pre-COVID BC network, the airline has opted to only bring back services from Vancouver to Toronto and Montreal for the time being. Air Transat also announced that it will suspend its winter services to the U.S. and Mexico from Western Canada, including all previously planned flights from Vancouver. However, it received three new Airbus A321LR aircraft in this summer, so it likely to scale up its operations in the future.

Flair Airlines
Flair Airlines opted to suspend its planned expansion to Atlantic Canada this summer, and instead retrenched to many of its original routes for the first half of the summer. However, on July 23rd the carrier announced additional new routes, many of which are located in Western Canada and the Prairies.

Pacific Coastal
After temporarily winding down its operations on March 24th, Pacific Coastal returned to the skies on June 17th with their Vancouver – Cranbrook route. This was followed by a large ramp-up announced on July 5th, which included the destinations of Victoria, Kelowna, Powell River, Trail, Williams Lake, Comox, Campbell River, Port Hardy and Tofino.

Central Mountain Air
CMA has focused on expanding its services from its main hub in Prince George. The airline’s most recent schedule announcement lists eight total destinations by mid-September in British Columbia and Alberta, including: Prince George, Terrace, Kamloops, Kelowna, Fort Nelson, Fort St. John, Edmonton and High Level. Many of CMA’s routes are of vital importance to ensure regional connectivity for some of BC and Alberta’s most remote communities.

Learn more at:
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Pandemic Continues
to Impact Tourism Businesses

Our tourism business operating since 1975 is a high end hunting and fishing resort where about only 50 clients comprising of 75% American, 23% European and just 2% Canadian generate 95% of our revenue ($500,000). The remaining 5% of revenue comes from hundreds of Canadians who enjoy the Crystal Lakes but rarely use our full services or facilities and pay less than $100 per person per visit. Simply put, Canadians don't require our services or facilities to the same extent and depending on or pivoting to a local market cannot generate the revenue for our business to survive. 

Our international clients generate approximately $40,000 in direct revenue to the provincial government through various licensing and fees. Not including corporate taxes or GST, our business pays approximately $20,000 in taxes and fees to the provincial government annually.

We employ 8-12 people seasonally.

For the first time ever in 2020 we negotiated a contract with an American television series producer to film an episode from our wilderness location. That contract was worth $125,000 to us alone, with other local service providers losing likely two or three times that amount. This contract was cancelled due to the border closure, and the show selected a US location to film. 

The border closure due to COVID has led to a catastrophic collapse of revenue. Our business will close in November and will not be able to reopen again until the border reopens, after which recovery is expected to be at only 50% the first year with full recovery likely 2-3 years out. It will likely take 10 years to pay back the debt incurred from sustaining our operations in 2020.

Dan Brooks
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Recent Media Coverage of BC's Visitor Economy

August 7th - CBC
BC lost thousands of businesses during first 2 months of COVID-19 pandemic

August 4th - Canadian Geographic
‘Absolutely catastrophic:’ Hit hard by pandemic, ecotourism needs help: Remote locations and international clientele make the industry particularly vulnerable

August 1st - Prince George Citizen
Hotel owners, tourism operators share survival concerns

July 28th - Victoria News
Accommodation revenues in Victoria down 86 per cent in June

July 29th - Kamloops This Week
Rocky Mountaineer's cancelled season leaves hole in Kamloops’ tourism sector
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Community Futures and TOTA Offering Financial Support for Tourism Businesses through Microloans as Part of Tourism Resiliency Program

The Thompson Okanagan Tourism Association (TOTA) is collaborating with Community Futures organizations across the region to assist in providing financial support to the tourism sector as part of the Tourism Resiliency Program. The Community Futures and TOTA taskforce is announcing the “Thompson Okanagan Tourism Micro Loan Program”, an initiative spearheaded by all nine Community Futures’ organizations located in TOTA’s region, which will offer micro loans to tourism businesses starting at $200 and up to $25,000.

In July, the Thompson Okanagan Tourism Association (TOTA) and nine Community Futures offices in the region signed a formal agreement, committing to the development of an active and meaningful relationship on the path to rebuilding a resilient tourism industry in the wake of the global Pandemic.
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Tofino’s Crystal Cove Beach Resort
Wins 2020 TripAdvisor Travellers’ Choice Award
for ‘#1 Family Resort in Canada’

For the second year in a row, Crystal Cove Beach Resort has been recognized by TripAdvisor as a 2020 Travellers’ Choice Best of the Best award winner for ‘#1 Family Resort in Canada.’ The honour is based on a full year of TripAdvisor reviews; prior to any changes caused by the pandemic. Award winners are comprised of the top 1% of hospitality businesses around the globe, exemplifying travellers’ ultimate favourite. 

“Family is the heart of everything we do, so to be chosen again by TripAdvisor as the top family resort in Canada—for the second year in a row—is very humbling and gratifying,” said J.J. Belanger, general manager. “Despite the challenges in adapting to this new normal, Crystal Cove’s entire team continues to shine for our guests, which translates to glowing reviews. This award would not have been possible without our team’s hard work and dedication.”

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Vancouver Attractions Group

Make the most of the rest of your summer, book ahead and save at Vancouver’s Top Attractions!
 
Ride a gondola or two, cross the world famous Capilano Suspension Bridge, explore Indigenous and local history or stroll through Vancouver’s most beautiful gardens! Plan ahead, book attractions and experiences for the whole month and save!
Book 2 Attractions Save 25%
Book 3 or more Attractions Save 35%
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Building Team in a Time of COVID

July 24th was the first time in months that the entire Thompson Okanagan Tourism Association (TOTA) team was together for a physically distanced day of meetings and activities.

Since mid-March, they have been together on video chat every morning and evening to set goals and provide updates on the day’s activities. They have had virtual performance reviews, managers meetings, interviews, new hires, and discussions. They created and delivered the entirely new Thompson Okanagan Tourism Resiliency Program and have had more one-on-one time with each other and regional stakeholders than ever before. They have even had their staff retreat online, complete with breakouts, and none of this would have been possible without tools like Zoom or Meetings.

However, recently they were actually together, and a their CEO, Glenn Mandziuk points out - there is no substitution for the quality of interaction that takes place in person. Having the opportunity to meet their summer interns in person and to be together as a team demonstrated to all of them the importance of direct human connection.
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Small Business BC Webinar

During COVID-19, business owners have been looking at different ways to cut costs and become more efficient. What if it was possible to achieve this goal while helping to reduce transmission of COVID-19 at the same time?

Delivered by Sam Thomas, Principal and Kootenay Branch Manager of Prism Engineering, and Tiago Pereira, Energy Solutions Manager at FortisBC, attendees will learn practical steps for making the workplace safer, while also saving money in our “new normal.” We’ll also be covering tips for making your space cost-effective, COVID relief incentives for small biz and plumbing/environmental controls.

What Will I Learn?
Best practices in HVAC and safety during COVID-19 reopening
How to develop a pandemic response plan
Steps to prepare your business for a potential second wave
Identifying opportunities for increased energy efficiency in your business
Available rebates and energy saving resources from Fortis BC

Wednesday September 2, 2020 @ 10:00am (PT)

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****NOTE: TIABC's C-19 Bulletin is now published every Monday, Wednesday, and Friday.

Feel free to send us your ideas on what information would be valuable for TIABC to share through our COVID-19 Bulletin going forward. Drop us a line at info@tiabc.ca.