C-19 BULLETIN - December 11, 2020
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CEO Message
During a recent meeting with new Tourism, Arts, Culture & Sport Minister, Hon. Melanie Mark, she asked members of the Tourism Task Force to use one word to describe themselves. I heard answers like determined, bridge-builder, energetic and many others that any one of us could have used.
Subconsciously knowing that the minister was once an avid rugby player, I blurted out the word competitive (something my wife can attest to ever since she picked me over some of the other blokes in my high school). Minister Mark not only found my answer amusing, she said that she had never heard that response before.
By way of context, I’m uber-competitive playing sports…hockey, golf, tennis, soccer, squash…you name it, I play to win. I’ve also had a long-standing competition with myself. For example, after completing a 10K race, I’ll run an extra kilometre just to see if I can. Or I’ll endeavour to finish a three-day house project in two by working extra-long hours. And now at this stage in my long career, I’ve managed to find an extra gear to compete day in and day out on behalf of our industry. I'm sure you get the idea.
I suspect this pandemic has resurrected or nurtured the competitive trait in most of us. Since March, we’ve individually and collectively been competing for government action vis-a-vis our sector, as well as media, resident and visitor attention to save BC’s visitor economy from total collapse.
Clearly the competition is formidable. Many other business sectors and segments of society have also been lobbying hard for relief measures, changes to policies, and other benefits to protect individuals, jobs, businesses, markets, and the well-being of communities around the province.
Notwithstanding the latest travel directives and the dire consequences on our industry, I believe tourism is competing hard and still in the game. Here’s why. Last week, I and a few of my sector association colleagues met with Minister Mark and the new Minister of Jobs, Economic Recovery and Innovation, Hon. Ravi Kahlon, to discuss much-needed changes to the Small and Medium-sized Business Recovery Grant that would allow more tourism and hospitality businesses to qualify for funding. Not only were the ministers and their senior staff receptive, they intimated that our submission was among the best they had ever seen in terms of content, context and proposed solutions. More importantly they were willing to advance our suggestions within government pronto.
As you saw in TIABC’s Special Edition C-19 Bulletin on Wednesday (also below), the government-appointed Tourism Task Force submitted its final report that included recommendations to further support BC’s beleaguered visitor economy. I know the report was well received by the Province with decisions imminent.
On the same day, TIABC hosted a meeting between eight senior BC tourism leaders and Terry Duguid, Parliamentary Secretary to Hon. Melanie Joly, the Minister of Economic Development and Official Languages (& Minister responsible for tourism) to request changes and propose solutions to several problematic federal government measures that currently don’t favour tourism operators. Mr. Duguid was an active listener, asked good questions and committed to not only take the individual and collective concerns to Cabinet in Ottawa, but follow-up with another meeting in January to provide answers and a progress report.
Still, in spite of the headway over the last week, I am well aware that we’ll need to compete as hard as we ever have in the days ahead to ensure that the tourism industry is afforded the priority it deserves for any new government measures and within new federal and provincial budgets in Q1 next year, especially since much anticipated holiday season revenue has all but evaporated for most businesses.
In the meantime, without being able to play sports for now, advocating for the visitor economy has become my primary uber-competitive outlet. One thing I know for certain is that our entire industry is on the same team and looking for victories of any size to survive.
Walt Judas
CEO, TIABC
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In Case you Missed it...
Tourism Task Force | Update on progress and final report
Since our appointment in September, the Tourism Task Force has been working diligently to deliver our final report to the BC government. And I am pleased to say that on Wednesday we delivered our final report to the Honourable Melanie Mark, Minister of Tourism, Arts, Culture and Sport—well ahead of our December 31st commitment. The immediacy with which we delivered our recommendations reflects the urgency and anxiety felt by workers and businesses across BC about the impact of COVID-19.
I hope you will take time to review the final recommendations, which reflect the need to urgently address immediate needs for support with a longer plan of action to ensure our diverse tourism sector is poised for recovery and growth in the future.
Over the past several weeks, task force members travelled (virtually) across the province to meet with small and large operators, Indigenous peoples, community leaders, labour representatives, sector association leaders, and tourism industry experts. On behalf of the Tourism Task Force, I thank everyone who took the time to provide us with honest and thoughtful feedback during these challenging times.
The BC government is now taking the time to consider our findings and review our recommendations. I expect we will have further conversations with the Honourable Melanie Mark, Minister of Tourism, Arts, Culture and Sport in the weeks ahead. I look forward to sharing more information about how we will be working together to support the industry now and in the future.
Sincerely,
Tamara Vrooman, O.B.C. (she/her/hers)
President and CEO, Vancouver International Airport
Chair, Tourism Task Force
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Province Provides Funding to BC's Tourism Regions
The Province is investing in communities today to help BC’s tourism sector recover when they can safely welcome visitors again.
BC’s five regional destination management organizations each will receive $2.3 million to invest in regional tourism development. Destination BC, representing the Vancouver Coast and Mountains region, will receive $2.1 million.
Regional tourism development projects include:
- connecting tourism experiences across a region, such as creating overnight trip itineraries or identifying points of interest along highway corridors;
- supporting the development of more Indigenous tourism experiences; and
- upgrading accessibility along a scenic route.
Funds provided to regions and projects for consideration will be identified by February 2021.
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BC Hotel Association (BCHA) Update
The Impact of Restrictions:
We continue to hear from many of our members about the severe impact that the recent round of restrictions has had on our employees, our guests and our business. From further constraints on meetings and events, to confusion over safe vacation travel please be assured that we are amplifying these concerns directly to government and to the media.
Advocacy Priorities Surrounding the Provincial Health Order (PHO):
BCHA is in continued discussion with government and advocating for the following. Please note, as soon as we have updates and responses from government, we will communicate them with you:
- We are seeking to broaden the list of essential meetings.
- We want our hotels to be confident in the type of business they can book and execute according to protocols. We require clear guidance on business meetings that are permissible as many are unable to be held virtually ie. safety training, project meetings, etc.
- The same message is being conveyed to media either directly by BCHA or via our industry partners.
- We are seeking to remove the stigma around family vacation travel.
- Confusion persists surrounding cross-community travel. While the recent PHO strongly advises against travel for leisure, government officials have also stated that a household is allowed to travel freely for ski vacations. Our ski industry partners have developed stringent safety plans, best practices and protocols and are ready for households to adhere to the safe travel rules, enjoying wide open spaces and few faces. Of course, it is so important that we stay in our household bubbles and keep each other safe, while at the same time, ensure we engage in safe outdoor fun.
- Our aim is to define the areas and regions in which travel for leisure is still permissible, particularly as we head into ski season.
Canada West Ski Area Association Best Practices:
The ski industry and our resort accommodation members are grappling with the reality of significant constraint as they head into what would be one of their busiest periods of the winter season. We applaud the leadership of the Canada West Ski Area Association for focusing the industry on what they can control which is the safety of their guests. We encourage our hotel partners in these areas to continue to lead by example as the industry has done since the beginning of the pandemic.
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Northern BC Tourism
Renews MOU with ITBC
Indigenous Tourism BC (ITBC) and the Northern British Columbia Tourism Association (NBCTA) have renewed their Memorandum of Understanding to advance a competitive, sustainable and socially conscious Indigenous tourism industry while contributing to cultural understanding and economic prosperity within the northern region. This is a guiding document that ties the organizations together to foster the growth of the Indigenous tourism industry. The growth of the tourism industry depends on our joint efforts to ensure the Indigenous tourism industry is able to realize its full potential and supports a diverse, strong and vibrant regional tourism industry.
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Northern BC Tourism
Announces New Indigenous Tourism Specialist
Under the new MOU, NBCTA and ITBC are delighted to announce the hiring of a new Regional Indigenous Tourism Specialist dedicated to Northern British Columbia. After an extensive search, Jolene Sampare was hired for the role.
Jolene Sampare HIway’ Ksim Gisk’aast niiy’ ii wilps Wisin Xblitw wil witgwiy ii Laxgalts’ap will jogay’. Jolene Sampare is Killerwhale from the house of Wisin Xbiltkw and resides in the Nisga’a community of Laxgalts’ap.Jolene has worked with the Hli Goothl Wilp Adokshl Nisga’a – Nisga’a Museum since it opened in 2011. She began with the organization as the Gift Shop Coordinator and worked her way to her most recent position of Museum Coordinator.
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A Lesson and Perspective in Operations from a Tourism Business Owner During the Pandemic
The value of any business asset is determined by the net present value of the net after-tax cash flows generated by that asset. Anything that reduces the cash flow generated by that asset, such as increased operating costs (e.g. providing PPE or increased labour for disinfecting etc.), reduces the value of that asset. Not only is its value impaired, it produces less income every year in which operating costs are increased.
Anything that reduces the capacity of the asset, such as a reduction of the maximum number of passengers on planes, buses, boats, vehicles, or guests in a hotel, restaurant or bar, reduces revenue which reduces the net annual cash flow and subsequently reduces the value of that asset. Not only is its value impaired, it produces less income every year in which capacities are reduced.
Capital assets in a business are generally financed and these financing arrangements usually include various promises on the part of the borrower, including covenants which require that certain coverage ratios be maintained, such as minimum net income, interest coverage and asset value. This may trigger a demand for full principal repayment which may result in insolvency or bankruptcy.
When the value of a capital asset is impaired, such as by reducing capacities or increasing operating costs, the asset is worth less. Not worthless, it is worth less and that reduces, or impairs the value of the asset to the business, unless compensation is made for that value impairment.
The lowest economic cost solution is to not reduce capacities nor increase operating costs. If that is not workable, other solutions include grants, subsidies and loans recognizing the value impairment and matching the useful life of the assets, which are usually longer term, often with 10-50 year life spans.
A workable example might be long-term government financing, interest-free, with the forgivable portion equating to the value impairment caused by capacity reductions and increased operating costs. Additionally, wage subsidies would contribute a partial solution to offsetting increased operating costs.
This emergency has cast a wide web of problems, some of which won’t be known for some time. However for this problem, the aforementioned recommendations could be a workable solution.
Dan Kukat, CPA, CA, BComm
Dan was a professional CPA before moving with his family to Vancouver Island with their 36' boat Springtide. Dan, an avid fisherman, and Joanne Kukat together created a memorable Sport Fishing Adventure - Springtide Whale Watching & Eco-tours
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Indigenous Tourism Canada Addresses Damaging Media Coverage & a Difficult Week
Indigenous Tourism Association of Canada president & CEO Keith Henry hosted an extraordinary webinar on Wednesday to address a series of concerns resulting from a negative media story earlier in the week. View the webinar here:
ITAC's board also released a strong statement of support for Keith and his entire team here.
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Join TIABC Today
Are you considering supporting TIABC with membership?
Membership in TIABC has never been more important. The impacts of COVID-19 have been widespread in the tourism industry and coordination with industry partners to share concerns with government is critical.
You can join TIABC for free until December 31st and receive complimentary membership right through 2021. Simply send us an email to info@tiabc.ca along with your logo so we can add you to our online membership directory. Note - other membership options are also available to ensure TIABC has the operating revenue it needs to continue its important efforts. _________________________________________________________________
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What to do if you have a COVID-10 Outbreak
Our partners at ABLE BC hosted a webinar with go2HR on what to do if you have a COVID-19 outbreak. Watch the recording.
The webinar covered the following:
- What to do if an employee tests positive for or comes into contact with someone who has COVID-19
- What to do if a customer tests positive for COVID-19
- Steps to follow in the event of a COVID-19 outbreak, including WorkSafeBC, public health guidelines, and general cleaning guidelines
- Employer responsibilities
- Reviewing your COVID-19 safety plan
- Helping employees feel safe in the workplace post-outbreak
- Sample communications and messaging to share with customers and staff
Download the updated COVID-19 Outbreak FAQ, including sample messaging and templates to share with customers and staff.
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WIN a Kingfisher boat, Yamaha power and Scotty package, one of 4 fishing adventures to destinations along the BC coast, or one of the two excellent early bird prizes!
Early Bird Deadline: Midnight, Friday, February 19, 2021
Early Bird Draw: Saturday, February 20, 2021 at 12:00 PM
Main Draw Deadline: Midnight, Friday, March 19, 2021
Main Prize Draw: Saturday, March 20, 2021 at 12:00 PM
The Sport Fishing Institute of BC, representing the interest of hundreds of thousands of anglers and working together with community and industry groups across the province, is dedicated to protecting, preserving access to, and promoting the public fishery on BC’s west coast and its vital role in our economy and heritage. Your support through the 2021 raffle will help secure a better future for our fishery and the resources it depends upon.
Supporting the activities of the SFI will assist British Columbians in accessing and enjoying public fisheries in BC. The public fishery is enjoyed by over 450,000 anglers every year.
As such we want to bring attention to and support for a Mark Selective Fishing (MSF) strategy as a progressive solution to protecting our salmon, our economy, and a way of life so many British Columbians and Canadians enjoy and rely upon.
Consider a raffle ticket as a Christmas gift to someone you love.
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TIABC will be hosting a joint webinar next week with the BCHA and TOTA. In this webinar, we'll discuss the recent work done by the Tourism Task Force and the Tourism & Hospitality Coalition, provide an update on the industry, as well as an outlook for 2021.
Friday, December 18th
1:00pm PST
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Webinar Available to TIAC Members
Join TIAC and Twenty31 next Thursday, December 16th at 1pm EST (10am PST) for a candid conversation about how COVID-19 has impacted destinations and tourism operators in Canada, as well as globally, and what they're doing to manage the future of the tourism industry.
This month's panelists include:
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Joe Naaman, Executive Vice President, Strategy, Twenty31 Consulting Inc.
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Mandy Farmer, CEO, Accent Inns
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Ross Jefferson, President & CEO, Discover Halifax
This webinar is available to all TIAC Members. Please note the webinar has a maximum capacity of 500 participants, and a recording of the webinar will be available on the TIAC Members' portal. The webinar will be presented in English.
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Together with the Tourism Cafe, the BC Regional Tourism Secretariat is pleased to announce expanded support through the BC Tourism Resiliency Network. Launching this month, Ideas Labs are a series of 30 online sessions on nine original topics selected from requests from tourism operators across the province. The labs will bring small groups together in a business-to-business learning environment to address hot topics where solutions to common problems are discussed and shared, and new ideas are incubated. These are 1-hour online peer-to-peer discussions led by an inspiring industry topic specialist.
Each session is limited to only 12 participants and space is limited. Ideas Labs is a program created and produced by the Tourism Cafe.
Learn more at:
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TIABC's C-19 Bulletin is 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.
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