Strapped Newfoundland sets high hopes on summer tourism
ST. JOHN’S, N.L. — Tourism is always vital for Newfoundland and Labrador but never more so than this year as a financial crisis rocks the province.
“We have a lot riding on the summer,” said Courtney Howell, who runs Grates Cove Studios and restaurant with her husband, Terrence, a woodworker and artist, on the northern tip of the Avalon Peninsula.
It’s their fourth season preparing a locally sourced menu billed as Newfoundland Cajun home cooking. They also pack picnic lunches for ocean-view walks along the Baccalieu Trail, and offer unique retreats in two vacation homes from which you just might glimpse an iceberg or humpback whales.
Howell said bookings are slightly up this year. She’s among many entrepreneurs hoping a good season will help buffer a provincial budget that has become a flashpoint for anger and worry. It contains sweeping tax and fee hikes, but still projects a $1.8-billion deficit this year.
The oil price crash since 2014 has drained the coffers of a government that heavily relied on profits from its offshore sector.
“You can tell people are very nervous,” Howell said. “[A strong summer is] going to make the difference to us.”
About a two-hour drive south in the capital St. John’s, restaurant owners and other businesses must also absorb higher taxes imposed in the city’s last budget.
“It’s life or death this year for some people because of the city tax issues,” said Nancy Brace, executive director of the Restaurant Association of Newfoundland and Labrador. “They’re hanging on by their fingernails.”
Chinched Bistro is located near the newly expanded St. John’s Convention Centre. With a main ballroom that can hold just over 1,500 people, the centre could be a much needed economic boost, said bistro coowner Michelle LeBlanc.
“We have to think positive, be creative and work together,” she said of downtown businesses.
George Murphy, a night dispatcher and driver for Jiffy Cabs in St. John’s, said the exodus of big-spending oil executives over the last year was a major blow, even before the provincial budget came down. Many drivers don’t know if they can last another six months, he said. “We have this discussion at quiet times, at three o’clock in the morning, directly on the radio.”
Residents are noticeably belttightening, Murphy said.
He wonders if tourists will be put off by a Harmonized Sales Tax going up to 15 per cent from 13 per cent on July 1. That’s on top of a 16.5 cents per litre gas tax increase — double the current rate — as of June 2, adding about $8 to fill a mid-sized vehicle.
Tourism Minister Christopher Mitchelmore downplayed the latter concern, saying prices at the pumps were higher last year. He expects gasoline rates will be comparable even with the higher tax factored in.
Tourism, worth $1 billion a year to the province, is a bright light of hope and opportunity, he said in an interview.
“I was on the Northern Peninsula, the west coast [of Newfoundland], the Bonavista Peninsula, and all indications are for a very strong tourism season. Bookings are higher than last year, and we’re also seeing new product being developed.”
Mitchelmore said the latest in the province’s series of colourful, award-winning tourism ads — “Crayons” — has been a hit, featuring the charm of outport villages and vibrant jellybean rowhouses in St. John’s.
There are now two direct flights connecting St. John’s with London and one with Dublin to attract European visitors, Mitchelmore added.
“Newfoundland and Labrador offers pristine beauty. It allows people to get away from their concrete jungles and truly experience our local culture.”
Like never before, the province is counting on it.