At the height of the tourist season some businesses in Churchill, Man. say they've been dealt another economic blow, beyond the damaged rail line.

Beluga whale tour operators say new federal rules that carry hefty fines could put them out of business.

The rules now in effect from Fisheries and Oceans Canada require boats to keep 100 meters distance from the animals in Hudson Bay, and 50 metres in the Churchill and Seal River area.

Kayakers are also covered by the rules.

Each year, 60,000 belugas descend upon waters in the region, to the delight of visitors from around the world.

The fine for coming too close to the animals ranges from $50,000 to $500,000 thousand dollars.

Despite the change, operator Wally Daudrich is still conducting tours. He said belugas are too curious to avoid.

"As soon as we take our boats out on to the water we are literally flogged by whales, we would actually have to drive away from them to make these amendments applicable," said Daudrich, who is with the Churchill Beluga Whale Tour Operator Association

Fisheries and Oceans Canada said approaching marine mammals too quickly, coming too close or making too much noise can disturb, stress and even harm whales.

It said the new rules will be enforced, but are not intended to hurt businesses.

"We've established these distances based on the best available science around what distance would lead to the lead to the whale being disturbed," said Adam Burns, who works in fisheries resource management at Fisheries and Oceans Canada.

Oceans North marine biologist Kristin Westday said there are threatened whale populations in eastern Canada and on the west coast, but Churchill’s whales are thriving, and there is no conclusive evidence the tours are harming the belugas.

"Let’s prepare for the future. So should there be oil and gas that's something we need to step in front of. Let’s enforce those rules, no oil and gas,” said Westdal.

“Looking at tour operators, looking at whale watching in this area, doesn't make any sense.”

Daudrich said operators have been trying to meet with the government for a year to explain Churchill’s unique situation.

He said a fine could be devastating and wants Churchill operators exempted from the rules.

“There's been a high degree of frustration, disappointment and anger, the way they have handled this. They have purposely avoided us,” said Daudrich.

There is some leeway in the new rules.

Fisheries and Oceans Canada said the rules apply to human activity not whale activity, citing if an animal approaches a vessel without it being enticed to approach, that's not subject to the regulations, Burns told CTV News.