All posts by Erika Ibrahim

Canada set to see lost revenue from tourism industry due to COVID-19

ReportingMethods2020_3, ,
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In an unprecedented move, Canada announced it would tighten its borders indefinitely to slow the spread of COVID-19, restricting all non-essential travel, including tourism.

This action comes at a time when Canada’s tourism commission reported its strongest year of growth in international visitors to the country.

The government is already taking action to assist Canadians facing economic hardship. Included in their aid package are supports for Canadian businesses that have had to close or shutter due to the pandemic.

Weeks before the federal government was scheduled to release its upcoming budget, allocations for hard-hit industries like airlines may require revision to compensate for losses beyond their usual spending. The visitor economy makes a sizable contribution to Canada’s overall economy.

Canada’s tourism industry has provided a steadily growing stream of revenue to the government, but will see a drop as a result of travel-related restrictions due to the COVID-19 pandemic.

Even as the full impacts of Canada’s border closures are not yet fully felt, it is likely that the tourism industry will see major losses. This drop will interrupt a trend of strong growth in international tourists visiting Canada.

The federal government’s aid package aims to benefit citizens and businesses with any economic hardships as a result of COVID-19. It is likely that those out of work in the airline and tourism industry will seek such aid.

Some of the hardest hit workers are those in the tourism and hospitality industry, who rely on in-person interactions and spending by international and domestic visitors for their livelihood.

In 2018 there were a total of about 585,000 people employed in Canada’s tourism industry, working in a variety of related sectors, according to the most recent data from Statistics Canada.

Canada’s tourism industry employed an estimated total of 585,000 people in a variety of sub-sectors, according to tables from Statistics Canada.

Ottawa’s new child care centres face uncertain future with halted provincial funds

ReportingMethods2020_1, , ,
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The City of Ottawa spent approximately $10 million to create and subsidize new child care spaces. Pictured is Andrew Fleck child care centre, a provider that receives funding from the city, on Thursday, Feb. 6, 2020. Photo by Erika Ibrahim

Ottawa is spending almost 90 per cent less to help parents who need spots in licensed child care spaces, according to an analysis of the city’s 2020 budget.

The city’s increased spending came from several one-time transfers in 2017 from the province in an effort to make child care more affordable.

This funding went toward creating about 400 new licensed child care spaces by the end of 2020.

“You can build a beautiful child care centre. You can’t really hire people to work in it unless you have a budget [to pay them]. Then parents end up having to pay for it.”

Martha Friendly, founder of a national child-care policy group called the Childcare Resource and Research Unit, said to keep these new spaces running, the city would have to not just create new spaces and subsidize child care fees, but also put money toward paying staff.

She said when governments don’t subsidize staff salaries, those costs are passed along to parents, making child-care fees even higher and more out of reach.

“So essentially you could have it running, and the room is just sitting there [empty].”

Special purpose funding also helped approximately 2,000 families with the high costs of child care, according to a city spokesperson.

 

Ontario licenses child care centres, as well as private-home day care agencies. These spaces may care for children of different age groups, such as infants, toddlers and pre-school-aged children. These spaces can also be for school-aged children before or after school hours, or when schools are closed.

Child care fee subsidies are given, according to a family’s level of financial need.

In an emailed response, a city spokesperson said that they continue to receive provincial and federal investments, but did not explain how much and whether it was enough to cover keeping the newly created child care spaces going long-term.

This drop in funding comes at a time when the Ontario government announced cuts to child care funding for municipalities.

Starting this year, Ottawa will have to pay 20 per cent of costs to create new centres. This change results in a reduced projected revenue of $2.7 million, according to a staff report presented to the committee overseeing the child services budget.

The provincial government says this change is part of reducing administrative costs and wasteful government policies.

Child care in Ottawa may become less accessible and affordable as an effect of the provincial cuts, according to the report. The funding drop may also result in fewer supports to child care providers.

The staff report says that the City would discuss proposals on how to make up this shortfall in the 2020 budget. However, there is no mention of proposals of the budget tabled for this year.

Jason Sabourin, Manager of Children’s Services in Ottawa, could not be reached for comment before this story’s deadline.

Large local child care provider Andrew Fleck Child Services could also not be reached for comment before this story’s deadline.