ONTARIO — A comprehensive survey commissioned by The Tourism Industry Association of Ontario (TIAO) has detailed the already devastating effects that COVID-19 is having on the tourism industry.
The data, collected between March 12 and March 16, measured the impact of COVID-19 containment responses on tourism operations in Ontario.
The survey attracted 2,000 responses from industry stakeholders from all corners of the province. The data paints a picture of cancellations, lay offs and seismic drops in bookings with the fear that the worst is yet to come.
Top line data analysis reveals up to 80 per cent drop in hotel reservations; some accommodation businesses are reporting the threat of massive lay offs and bankruptcy; some operators planning on immediate partial closures, reductions in hours and laying off hourly staff; attractions reporting a loss of 800-1000 visitors, and an association loss of tens of thousands in revenue; Northeastern Ontario that relies on business with Cruise Ships are projecting that revenue will be down by at least $500,000 in 2020 compared to years past; operators reporting 100 per cent cancellations of group bookings and 90 per cent of individual bookings; and meetings and conventions centres are reporting cancellations, loss of contracts and bookings.
“COVID-19 is having an immediate and devastating impact on the tourism industry,” said Beth Potter, President and CEO of TIAO. “What our survey shows is the extent to which some businesses are already laying off workers, with further lay offs expected, reducing operating hours and in many cases closing as a result of an unprecedented number of cancellations and reductions in bookings. We’re relaying this data directly to both the provincial and federal governments.”
She said they are hopeful there will be immediate significant economic support to both small and large operators. “The announcements from government are encouraging but we need the detail behind the support packages and the implementation plans urgently,” said Potter.
“What is clear from this report is that we need a substantial and urgent economic stimulus package covering wage protections, tax credits, small business loans and utility costs. If not, as our stakeholders are telling us, the tourism industry in Ontario might never recover in its current form.”
