Journal Pioneer

Business owners react to cruise ship cancellati­ons

- BY MITCH MACDONALD

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’.”

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