Tourism sector needs government assistance

Brace for more bad news when Statistics Canada releases its latest monthly jobs report next week.

Last month’s results showed in the space of about two weeks, 11,000 Niagarans lost their employment — proof of the destructive effect COVID-19 has had on the local economy. That data was collected during the third week of March, just as people were being ordered indoors and businesses were temporarily closing to prevent the spread of the virus. In the month since, things likely have become worse.

We can hope the federal government’s 75 per cent wage subsidies are enough to enable most employers to tough it out in the short term.

The reality is, though, Niagara’s jobs market is more reliant on the tourism industry than nearly any other area of Ontario. And no industry has been harder hit than tourism. When our elected representatives call for special financial assistance for that group, we hope folks at Queen’s Park and in Ottawa are listening.

As we’ve reported, four sectors that help comprise the tourism industry — accommodation and food services; retail; arts, entertainment and recreation; and information and cultural services — were responsible for about 60,000 jobs in Niagara before COVID-19 changed everything. In Niagara, that’s about one of every three jobs, compared to one in five across Ontario.

So when those sectors are hard hit, and they’ve never been harder hit than now, Niagara feels more pain than probably anywhere else in the province and country.

It only takes a drive through the barren streets of Niagara Falls to see the impact. On a normal summer day you will see upwards of 10,000 tourists, sometimes more. These days they rarely break beyond double figures.

The visitors aren’t here, and the army of workers who should be on the job servicing them are sitting at home.

With no tourists, there’s no outside money flowing into Niagara. And with fewer people on the job, less money is circulating among local businesses.

Every corner of Niagara depends to varying degrees on tourism.

The shows and festivals in St. Catharines, Bay Beach in Fort Erie, the waterways in Welland and Port Colborne — they all attract people from here and elsewhere. With those off limits now, there’s no spillover, no one is stopping for a meal before a show or picking up supplies to bring to the beach.

The money that tourism industry stakeholders generate is immense, and the Region and municipal governments count on those places as important sources of tax revenue.

The traditional tourist season, the 100 days of summer that drive the rest of the year, is nearly here.

Not only are thousands of tourism jobs unfilled as the clock ticks, but before it can regain any momentum the industry needs people to start feeling comfortable again among crowds.

So in the short term, as rules are loosened, locals will start shopping again and buying clothes and getting haircuts and taking music lessons. But how long will it take before people are comfortable taking a tour through a winery, or wandering the pathways at the butterfly conservatory?

For most industries, supply lines can get back up and running reasonably quickly. Not so for Niagara’s main industry. Its chain of supply is built on trust, from a population that has spent the past six weeks with its life turned upside down, being told strangers might be carrying a lethal virus.

Restoring that is a long-term task. In the meantime, Niagara is going to need some more help to get by.