Canada’s tourism operators struggling to stay afloat as debt mounts: poll

In a poll of tourism operators, some 45 per cent said they were likely or somewhat likely to shut down within three years unless the government steps in to adjust loan conditions.

The head of the Tourism Industry Association of Canada says businesses are struggling to stay afloat under a pile of debt and a dearth of overseas visitors.

In a poll of tourism operators, some 45 per cent said they were likely or somewhat likely to shut down within three years unless the government steps in to adjust their loan conditions.

“Unless there’s some change to the payback system and the payback requirements, they’re in danger of closing in the next three years,” said Beth Potter, CEO of the trade organization.

“Everything from campgrounds to hotels to amusement parks to outdoor adventure,” Potter said.

“Festival events oftentimes are run by non-profit organizations, and they’re really challenged right now in paying back these loans,” she said.

“It’s dire.”

Many businesses surveyed said they will not be able to make debt payments that are slated to come due in the next two years. The loans include those taken out through federal pandemic relief programs such as the Canada Emergency Business Account (CEBA) as well as the Regional Relief and Recovery Fund and the Highly Affected Sectors Credit Availability Program.

The tourism association is calling on the federal government to extend the zero-interest repayment deadline for CEBA loans to Dec. 31, 2025, two years past the current deadline.