Hi everyone,
hope you are doing well. I wanted to write about how COVID-19 has affected the travel industry, and the most interesting thing I found was that this disturbance to the industry is viewed more detrimental than 9/11. Although the terrorist attacks have continued affected the (north) American psyche ever since, the difference is that this pandemic has more far-reaching effects by affecting the global economy. Another difference is the extent this economic downturn is expected to last, as the permanence of the current recession becomes more apparent.
In Canada, the tourism industry employs about one in eleven Canadians, and in the province British Columbia, it plays an even bigger role as a top-three sector in the province, with 70,000 jobs in Vancouver. This means that the province is reliant on tourism as major source of revenue, Many of those tourism jobs may not be coming back, which is evident by how Air Canada is not only temporarily laying off its staff, but reducing 20,000 positions (or 60% of its workforce) to anticipate the reduced volume of travelers in the years to come. This makes sense- people don’t need to travel, and traveling isn’t essential. We don’t know how long it would be before we see the economy at a pre-COVID-19 level, which means that people are having issues meeting the basic necessities, let alone the disposable income the travel.
Now, I want to analyze situations at a closer level, by comparing two provinces. Ontario and British Columbia are the two most developed provinces in Canada, though economic recovery has been slower in BC, despite having more businesses reopening due to more relaxed COVID-19 measures (less infections in BC). The reason is because ” BC has more people proportionally working in personal-care services – such as massage therapy, physiotherapy, spas, yoga studios, nail salons – than elsewhere in Canada, while its manufacturing, financial services and head-office-type sectors are smaller than in Ontario and Quebec.” I’ve noticed this- Vancouver has more small businesses and self-employment, while Toronto has more head office positions and manufacturing.
High Rents, Tourism Reliance Will Mean Vancouver’s Recovery Will be Slow– Globe and Mail
I think this sheds light on how Canadians are affected differently based on the province they reside in. Also, this shows that not all that glitters is gold. As you know, I grew up in Vancouver, but had most of my professional development in Ottawa- when I would tell people where I grew up, people has such a positive reaction, and viewed the city like paradise. Yes, it is one of the world’s most livable cities, but there is a dark side, and that article highlighted one of the cities’ weak spots by having such a large concentration of the local economy in personal care services and tourism.
When you add those issues together- like how the local economy is dependent on tourism, and how this city is the most expensive to live in throughout Canada, Vancouver is not in a very good position.
What are your thoughts?
Talk to you soon,
Guest
