Business owners react to cruise ship cancellations
The cancellations of cruise ships coming into the Charlottetown harbour is creating a negative ripple effect on P.E.I.’s economy, say some business owners.
Conner Reid and Lisa Gale, co-owners of the Charlottetown Marina and Steamers Boathouse, said every cancellation affects the bottom line in P.E.I.’s short tourism season. Whether it’s locally purchased beer, seafood or produce, the restaurant plans its orders and schedules employees partially around cruise ship visitations.
Reid said cancellations mean the restaurant is either stuck with extra food that goes to waste or has to order less from suppliers.
“It branches out to every business …. We have six different companies that we purchase from, and it may be a wholesaler or it may be a small fisherman,” he said. “Everyone is going to feel the effect.”
This year has seen 10 cruise ships cancel due to speed restrictions put in place last month in the Gulf of St. Lawrence to prevent further deaths of endangered right whales.
The port authority says this means about 8,000 fewer passengers, with the province adding that every passenger spends about $100. Economic Development and Tourism Minister Heath MacDonald said even with the cancellations, Charlottetown is expected to see 97,000 cruise ship passengers this year. That’s up from 66,000 in 2016.
While he said it wasn’t “time to hit the panic button,” he noted the cancellations affect many Islanders and create concerns for other cities.
“Halifax, Sydney and St. John are also concerned… the whole package is the eastern seaboard and it’s not a win for anyone when all these ships cancel (P.E.I.),” said MacDonald. Reid acknowledged that while passengers will still be up, businesses project their growth on early expectations and may expand with that in mind.
“You start to say ‘OK, well I’m going to need to purchase a new fridge to hold stock or I’m going to have two new cooks’,” said Reid. “(As) they start taking boats away you’re going… ‘I didn’t really need that fridge or I have to let an employee go because I can’t afford to keep them anymore’.”