Federal Budget: Slashed Benefits Could Push Agents Out of Business, ACITA Says

Monday's federal budget leaves travel agents dangling, and it's unclear how long they can survive, ACITA says.

ACITA'S Brenda Slater told TravelPulse Canada that having the Canada Recovery Benefit program extended to September "will help alleviate some of our stress." But she also noted that Finance Minister Chrystia Freeland said the CRB will be reduced from $500 per week to $300 per week starting in July.

That, Slater said, "is going to push more of us out of the industry."

ACITA, will continue to advocate for the CRB to stay at its current rate, and that, she said. should continue for six months after the lifting of Level 3 advisories and border closures.

Slater said Freeland did talk about more assistance for small business, women and tourism, "but with no details."

That makes it tough to comment, but she said she's hopeful that details will be revealed later with more assistance for independent travel advisors.

"For brick and mortar agencies it will be a relief that they will extend the wage subsidy and rent subsidy programs, but without this sector specific aid, we wonder how long our storefront colleagues can survive. Certainly there seemed to be a lack of a plan to financially support the retail/independent travel industry."

The National Airlines Council of Canada (NACC) which represents Canada's largest airlines (Air Canada, Air Transat, Jazz Aviation and WestJet), welcomed measures announced in the federal budget to support the aviation and the travel and tourism sectors, but cautioned that much work still remains to address the devastating impact of COVID-19.

The budget "has taken steps to assist the sector during the immediate crisis. But more work is required, in particular the development of a safe restart plan for aviation and international travel, if we are to restore the hundreds of thousands of Canadian jobs that are supported by the sector and facilitate the economic recovery of communities across every region of Canada", said Mike McNaney, President and CEO of the NACC.

"In addition, the government has previously noted that it is also in continued discussions with air carriers to reach agreements to address the challenges facing each airline," McNaney said. "NACC supports the conclusion of agreements between its respective carriers and government.

"As those discussions continue and the measures captured in the budget are implemented, there remains a critical need for the government to engage with industry in the development of a safe restart plan for aviation that is based on science and progress in vaccination implementation, that utilizes various means of testing, quarantine and electronic data capture to adjust border and travel measures, and maps out a clear and safe return of aviation and international travel," he said.

"Budget 2021 funding for COVID testing at Canada's airports is welcome, but to ensure that airports are ready when demand for passenger traffic returns, government and industry must also formulate a restart plan in the coming months," the Canadian Airports Council said in a statement.

"Given the financial strain that airports are under - including revenue losses of $5.5 billion to the end of 2021, and new debt of $2.8 billion - the CAC also continues to ask for financial support through the form of a moratorium on ground lease rent until the business recovers and more options for interest free loans and operational support."

"These actions are necessary to help ensure that Canada's air sector is competitively placed on the other side of the pandemic, to compete with airports and airlines in the U.S. and other jurisdictions that have provided greater government support to their travel and tourism sectors to address the pandemic crisis," the council said.

The Tourism Industry Association of Ontario said it welcomed the $1 billion being provided to the tourism industry in Canada over the next three years, including $500 million for a Tourism Relief Fund that will support investments by local tourism businesses in adapting their products and services to public health measures and other investments that will help them recover from the pandemic.

There's also a promise of $100 million to Destination Canada for marketing campaigns to help Canadians and other visitors discover and explore the country.

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