Federal Budget 2022 Highlights

The Government of Canada unveiled its 2022 federal budget on April 7. Spending was largely focused on housing and defense and notably excluded targeted support for the tourism industry by means of wage and fixed-cost support, and an extension of the Tourism and Hospitality Recovery Program. It also did not include amendments to the Tourism Relief Fund, nor extensions and amendments to debt relief such as the RRRF and CEBA programs.

The Office of the Minister of International Trade, Export Promotion, Small Business and Economic Development spoke to Budget 2022 and noted that it is an innovation-forward budget that is focused on fiscal responsibility as Canada recovers.

Many initiatives in the budget are designed to support Canadian businesses as they scale up, including investments in the Canada Growth Fund, the Canada Innovation and Investment Agency, and the Coordinated Accessible National (CAN) Health Network.

Other commitments include investments to build a world-class IP regime, grow global innovation clusters, and ensure the resilience and stability of supply chains.

View Recording → (Password: ZtWrptm2)

To learn more about how the federal budget relates to the tourism industry, view the following summaries:

• Government of Canada: Budget 2022

• Destination BC

• Tourism Industry Association of Canada (TIAC)

• Hotel Association of Canada (HAC)

• Canadian Ski Council (via Capital Hill Group)

---

An Open Letter to Parliamentarians from Canada Ski Council

Letter originally published November 15, 2021 in the Capital Hill Times

"On behalf of Canada’s 236 ski areas, we want to thank you for supporting Canadians, our employees and our sector during the COVID 19 pandemic.

Collectively, Stats Canada estimated the pre-pandemic economic impact of ski areas to be $1.2 Billion. The same estimate pegged employment at 35,000 people. The pandemic negatively affected ski areas across the country seeing revenues drop by up to 60%. As our nation emerges from the worst of the pandemic, the coming winter promises to be a recovery year for ski areas as restrictions lift and businesses return to more normal operating routines. Canada’s ski areas stand ready to play a part in the economic recovery of the tourism sector.

Our value to Canadians

The CSC research estimates that up to 21% of the Canadian population (7.9 million people) has tried or is actively engaged in snow sports. Of the active market (those who have purchased a lift ticket in the past season), the CSC estimates that in 2018/19, there were 2.7 million active Canadian skiers and snowboarders.

The ski industry in Canada is a labour-intensive business. Total annual payroll in 2018/19 is estimated at over $450 million, with ski area contributions of over $50 million in payroll taxes. With total employment estimated at over 35,000 winter staff, the industry is relied upon by many small resort town communities.

It is imperative that after nearly two years of restrictions and lock downs that Canadians are able to get outside and enjoy our wonderful Canadian winters to the fullest. Skiing and snowboarding offer physical and mental health benefits as a winter activity.  Perhaps this has never been as important as Canadians seek naturally distanced outdoor activities. 

A looming threat to our recovery

The tourism industry has appreciated the work of the federal government to support our operators and workers, however a significant threat has emerged to our recovery. The labour shortage at Canadian ski areas has become a critical issue that may see as much as 30% of positions go unfilled this winter. Our members will not allow operations to go on in a manner that compromises safety. Still, the current shortage means that many supporting hospitality businesses will face closure or reduced hours that will further hamper the economic recovery of our industry.

Ski areas across our nation are working hard to engage the domestic workforce for this coming winter. However, a key constraint on the tourism labour force is the low number of International Experience Canada (IEC) participants entering the country. Commonly referred to as working holiday travellers, these individuals are essential workers for the tourism sector. Since March 2021, the number of IEC permits being issued has fallen well below normal levels—and the number of individuals who then actually arrive in Canada on an IEC permit is likely even lower. Rejections of working holiday visas, closed application centres, lack of available biometric screening, and other necessary pandemic measures have contributed to what has been described as a “tightly wound knot” in an essential source of workers. Canada’s ski areas are losing employees due to the extreme backlog of applications.

We are asking the federal government of Canada to ensure all available measures are taken to increase resources focused on the processing of PR and Visa applications relating to winter tourism businesses.

The Canadian Ski Council and our members urge the Government of Canada to act swiftly on this opportunity to preserve the winter tourism season in our country.

Sincerely,

Canadian Ski Council"

—

Note on:

“It is a requirement to wear masks on gondolas, on ski lifts, in lineups when you're close to people, and are more and more important this year, of course, but we also encourage everybody who's going there to be vaccinated.” In fact, masks are required on gondolas, but not lifts and lines.  This created a tremor in the ski sector for 24 hours as the CWSAA clarified for operators…it had huge and immediate staffing implications. Fortunately all was resolved.

The following are the notes CWSAA sent to ski area general managers re: the BC Ski Lifts & Face Coverings:

As sometimes happens in the myriad of details, at the November 9th BC Government COVID press briefing, a response to a question around face coverings and enclosed carriers inadvertently conveyed that masks were mandatory on all lifts and lift lines. CWSAA has confirmed with officials today the following:

• Passengers on enclosed carriers (gondolas & trams) require face coverings

• Face coverings are not mandated by regulation on outdoor chairlifts, surface lifts, and lift lines. However they are recommended and encouraged.

• Indoor spaces have face covering and vaccination requirements as per health orders