Halifax Mayor Calling On Governments To Do More For Tourism Industry
HALIFAX – Mayor Mike Savage is calling on all levels of government to give more aid to the beleaguered tourism and hospitality industry in Nova Scotia. After reading a CBC article about the woes of the industry, the Halifax Mayor took to Twitter to air his thoughts.
“Hard to imagine an industry being decimated so badly by forces outside its control,” wrote Savage on Twitter. “All orders of government need to rally in support of our travel and tourism partners. We will need them post-Covid and they need us now.”
Savage says he normally doesn’t use social media for his political agenda but feels the situation with the tourism sector requires urgent attention.
“I don’t often tweet about policy; that’s not my style,” said Savage.
“I just think they’re getting really pounded by Covid in ways people don’t understand.”
Savage has talked to many hotel operators who are dealing with record vacancies, despite being in the summer season. Halifax, which is normally a great tourism destination, has seen few visitors due to Covid-19.
“There’s just a lot of hotels that are at unbelievably low vacancy, when at this time of year, most of the time, they’re near full,” said Savage.
“We’ve had record-breaking tourism years five or six years in a row. But (hotels) have been … if not shut down, then close to it. It’s not sustainable for them. They can’t pay the bills that are due.”
Savage claims that past government programs for businesses, like the wage subsidy, had “limited benefit” to hotels and other tourism businesses. He believes something new must be figured out specifically for the tourism industry.
“Whether it’s a bailout or an assistance plan, I think we need to figure it out together,” he said.
“I don’t know what the term is. It could be a combination of things. It could be interest-free loans, but loans have to be paid back.”
In an email to Huddle Today, a spokesperson for the Office of the Minister of Economic Development and Official Languages said the federal government has invested hundreds of millions into the tourism industry this summer.
“With the summer upon us, Minister Joly recently announced over $110-million in support for Canadian tourism,” reads the email. “This includes $16-million for 79 tourism projects throughout Atlantic Canada, through ACOA. It also includes $4.5-million for provincial marketing organizations in the four Atlantic provinces.”
In another email, a spokesperson for the Nova Scotia government noted that the province has focused on a new marketing strategy to help the tourism industry.
“Tourism Nova Scotia’s marketing and business development programs have shifted this year to drive as much tourism as possible from the local and regional markets,” it reads. “Marketing campaigns and industry development programs are aimed at encouraging Nova Scotians and Atlantic Canadians to explore the province in 2020.”
Savage said the city is doing all it can to help the industry at the municipal level. They are allowing some deferred tax payments, but Savage notes municipalities are limited in what they can afford to do.
“We don’t have the ability to lower the interest rate (on taxes) just for the hotel industry…without lowering interest rates for everybody,” he said.
Halifax is usually a busy tourism hub and the municipality relies on seasonal businesses and hotels for property tax and other revenue. For years hotels have paid into a levy that is then used to market Halifax as a tourism destination.
“The Hotel levy is almost a done deal for this year; that’s not going to happen,” said Savage.
There is a minority of people who believe Atlantic Canada should open its borders to the rest of Canada to save the economy. When asked if he would support such an idea, Savage said it would depend on the rules that are in place. He also said public health would have to be the first priority in any decision about the borders.
“That would depend on the protocols that went with it. I don’t think the province would open up to the rest of Canada without very strong protocols in terms of testing and reporting,” said the mayor.
“I think there are some who would be willing to open up to the rest of Canada…”