Businesses struggling due to pandemic
Employment in tourism and hospitality sectors has been slashed by more than half
WATERLOO REGION — Tourism and hospitality businesses in the region are struggling to survive and desperate for help as the pandemic drags on into its 11th month.
They’ve used up their savings, have exhausted their leverage to borrow from banks, and are desperate to hang on until things reopen, said Minto Schneider, chief executive of Explore Waterloo Region.
“It really is brutal,” Schneider said in an interview. Thousands of people in the sector have lost their jobs, at least temporarily, as businesses have had to close or limit capacity to control the spread of COVID-19.
Before the pandemic, Waterloo Region had almost 2,500 tourism and hospitality businesses employing 24,000 people, she said.
Employment in the sector has been slashed by more than half, and is now at about 45 per cent of what it was before the pandemic hit, she added.
Schneider pleaded for help from the Region of Waterloo at the second “State of the Region” event, held Friday to benefit Rotary Waterloo Region and KidsAbility.
The event included virtual discussion groups on sustainable transportation, affordable housing, equity and diversity and supports for business.
At the business session, Schneider asked the region to push the province and the federal government to top up and extend emergency rent and wage subsidies and low-interest loans for businesses. She also wants the region to support proposals to create a federal or provincial tax credit to encourage people to travel in Ontario.
Many restaurants and other businesses have closed permanently, and many business owners are facing insolvency after having used up their savings and exhausted the chance to borrow from the bank, she said.
“They can’t get money from any other sources.”
The Chicopee ski hill was forced to close for most of the season, while
businesses such as Bingemans and hotels that lease meeting and conference space saw bookings evaporate.
“I think the recovery is going to be much longer (in the hospitality sector) than for other businesses,” she said.
Residents have a pent-up appetite for travel, and Canadians will likely be looking to travel closer to home as things open up, said regional Coun. Helen Jowett at the business panel. The recent announcement of low-cost air service by Flair Airlines from six Canadian cities will make it convenient and easy for people to travel to this area, she said.
But businesses need to survive to be able to enjoy the benefits of increased travel as things open up, Schneider said.
Many restaurants are facing increased insurance costs and are struggling to meet municipal requirements for liability insurance, said Tracy Van Kalsbeek of the Uptown BIA in Waterloo.
The region is working with an insurance provider to help get coverage for temporary patios on regional roads. “The idea is to make it easy and cost-effective for businesses,” said Ryan Mounsey in the region’s economic development department.
“We hear their concerns and are advocating on their behalf,” said regional Chair Karen Redman. “We recognize they’re the backbone of vibrancy for our downtowns and of our economy.”
The region is pulling out all the stops to contain the spread of the virus, and to get as many people vaccinated as soon as possible, since limiting spread will be what allows businesses to reopen sooner, said Bruce Lauckner, the region’s chief administrator. “We’re doing everything we can to help our businesses hang on for those brighter days ahead, which are coming.”
The region approved a tax freeze for nonpolice programs and has earmarked an extra $3 million over two years to help businesses build e-commerce platforms, access personal protective equipment, and retraining programs.
Kitchener and Waterloo have also announced measures to help businesses.