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Local tourism industry continues to struggle in post-COVID times

Pandemic, labour and supply chain issues, and accommodations tax have lingering impact
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Natural features such as the Waterfront Trail draw visitors to Burlington, however, the local tourism industry continues to struggle in the wake of the pandemic.

While it’s back to business as usual across many industries post-COVID, things remain far from normal for the tourism sector — especially in Burlington.

Without sounding the panic button, local officials say it’s going to take a lot longer than a year — if ever — to return to what tourism looked like prior to 2020/21.

In fact, Ikea is Burlington’s number one visitor draw to the city of nearly 200,000 residents

Burlington Chamber of Commerce President and CEO Terry Caddo said Spencer Smith Park or the Royal Botanical Gardens are likely the second.

Caddo noted that Burlington suffers the most in sports tourism, in part because of lack of facilities. Compared to Oakville and Milton, which have many new, state-of-the-art recreational buildings, Burlington has fewer per capita recreational facilities, and they don’t have the ability to host tournaments.

“Last year, (2021), Burlington was unable to host the women’s provincial curling championships,” he said. “Burlington couldn’t make ice available. We’re seeing things pick up, but nowhere near what it was.”

Lack of sports tourism creates a trickle effect on the local hotel industry. Caddo said 15 of the 16 hotels in Burlington are members of the Chamber, and shared that a lack of staffing has forced them to be unable to fully open their facilities.

In addition, businesses have continued to hold conferences and meetings virtually, as opposed to the way they were held in the past when conventions and workshops were commonly held at hotels or banquet facilities.

A Chamber of Commerce and Tourism Industry Association report said staffing challenges are contributing to barriers to recovery, and recommended cities look to tax incentives, cannabis tourism and affordable housing to support staff recruitment.

But, Caddo notes, that all takes time. He also said the new Municipal Accommodation Tax (four per cent charge on the cost of a hotel stay) means a surcharge on hotel stays, which is having an impact on hotels.

The City of Burlington implemented the new tax last October, stating it would initially generate an estimated $450,000 to $700,000 in revenue each year to support new tourism initiatives, attract visitation, bolster current marketing efforts, monitor and evaluate tourism trends through research, and provide tourism-related enhancements.

However, Caddo said, many book accommodations through third party sources to avoid the surcharge, using sites like Expedia or AirBnB. Caddo is hopeful the city will work out a more fair way of collecting that tax.

Tourism businesses in the province are generating 64 per cent of the revenues they once saw, according to the Chamber’s industry report. Kristene Smith, executive director of Tourism Burlington, said the Chamber report was broad in nature, and while she agrees the city’s industry is still far from where it was pre-COVID, she has a bright outlook.

Smith said Burlington is fortunate due to its location; the city's outdoor attractions — such as the Niagara Escarpment, Bruce Trail, waterfront and beach, trails and walking paths — saw a large surge of visitors during the past two years. She said people also took full advantage of the facilities at the Royal Botanical Gardens.

“There are so many great outdoor areas for people to visit,” she said, adding that she knows there are areas that are going to take time to recover.

Supply chain and labour issues, especially in the hospitality industry, have been a contributing factor, Smith added. Calling it the “great resignation” — the baby boomers retiring early — there’s also a lot more use of technology, which allows people to work remotely using mobile devices and computers.

Business is also impacted by the growing group that has decided to move to online retail sites such as Etsy.

Smith said the job force is very competitive right now and many hotels say they’re sold out, when in fact 50 per cent are not occupied, but there’s not enough staff to open them.

“People are only staying for a short time in one workplace,” she said. “They seek more benefits, more money; five months is the average, and then the grass is greener somewhere else."

She believes there will be a gradual return to normal and said the 2023 Municipal Accommodation Tax will help provide Tourism Burlington a larger marketing budget to promote more on a regional and provincial level to promote businesses.

“A lot of these businesses have taken great efforts to manage and run things,” Smith said. “We encourage people to get out there and visit.”

That’s exactly what Kimberly Watson, director of Museums of Burlington, would like to see.

“I think financially it’s affected the museum, because we are a non-profit, charitable,” said the director, who oversees both Joseph Brant Museum and Ireland House. “Our income comes from services we provide, school programs, camps, special events, etc. During COVID, we switched and did virtual; they were popular and people took part in them, but we are not back to pre-pandemic. People are erring on the side of caution, and with the way the finances are
right now, where are people going to spend their money?

Watson says she doesn't think their situation is unique, but their financing is dependent on programming, especially educational tours.

"We’ve seen schools come back, but it took a while," she said. "I’m hoping to see people come out to see some of the new exhibits.”

One of those is "Trailblazing", which opens at Joseph Brant Museum on Feb. 7. Created by the Waterloo Region Museum, it explores how women have transformed politics, work, and everyday life since 1867.

Joseph Brant Museum will also host a screening of The Woman Who Loves Giraffes, which re-traces the steps of Canadian Dr. Anne Innis Dagg’s 1956 journey to South Africa to study giraffes in the wild, and the Toddler Days program is back, from 10:30 a.m. to noon on Wednesdays, from Feb. 1 to May 24. Ireland House will be holding Family Day weekend events. Learn about the role of family members in the Victorian era on a guided tour of Ireland House Museum. Pre-booking is required.

For details on upcoming events, visit the Museums of Burlington website.


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Julie Slack

About the Author: Julie Slack

Julie Slack is a Halton resident who has been working as a community journalist for more than 25 years
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