'We really got hit bad': pandemic loan deadlines looming for Manitoba tourism groups

The tourism industry was gutted throughout the pandemic due to restrictions limiting travel and capacity. A new survey indicates nearly half of tourism operators across Canada are still struggling to survive.

Tourism businesses in Winnipeg, like the Splash Dash River Boat Tours at The Forks, took on government loans simply to stay afloat amid the pandemic. Now the deadline to pay them back is looming.

"For everyone, especially the tourism industry, we really got hit bad," said Gordon Cartwright, the owner of the Splash Dash tours.

It's been a busy start to the season, with more than 600 people climbing aboard in one Sunday alone. He says his business is back to pre-COVID levels – welcome news for Cartwright who has faced three tough summers of pandemic and economic challenges.

But there may still be challenges ahead.

A recent study conducted by Nanos polled 149 tourist operators across Canada between April 28 and May 12. It found 45 per cent of them could shut down within three years. This is because they are struggling to pay back the government loans they incurred during the pandemic.

"I think it was about $40,000 they gave you. You had to pay back at least $30,000, and I’m at $15,000 that I owe right now," Cartwright told CTV News. "I think I’ll be able to do that this year."

Manitoba Chambers of Commerce President and CEO Chuck Davidson says other businesses in the industry may not be on track.

"When you haven't been profitable for three consecutive years and you’re finally getting back to being in that profitable perspective, I think it’s getting back to that level, but you’ve taken on significant debt to be able to manage and to get through these last three years," he told CTV News.

"That’s the real challenge a lot of businesses are looking at right now."

The Canada Emergency Business Account Program funded nearly 900,000 small businesses during the pandemic. The zero-interest repayment deadline for those loans is Dec. 31.

Davidson said Ottawa should consider pushing that deadline back.

"That it’s a government loan that’s potentially going to put them out of business, that would be extremely problematic and something government would really want to rethink," he said.

Tourism Winnipeg says its data shows the hotel industry has bounced back, but while hospitality and tourism supports have made a difference, it hasn't been enough to make up for the lost revenues.

"Manitobans need to make sure we support our local hospitality businesses to ensure their survival," Karen Viveiros, the director of communications for the organization, said in an email.

In a statement, Manitoba's Minister of Sport, Culture and Heritage Obby Khan said the province's tourism industry is rebounding stronger than previously anticipated.

"We’re looking forward to a great summer of festivals, concerts, and the World Police and Fire Games which will bring visitors from around the world for one of the largest events in the province’s history," he said in a statement.

Cartwright said it could be bumpy ride for the industry, but he has high hopes for the summer and years ahead.

"We've seen everyone right across the world come down in the last three weeks that we've been operating, so they're coming back," he said. "The tourists are coming back. It’s great. People want to travel."

The Nanos survey was conducted on behalf of the Tourism Industry Association of Canada.