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As Canadians increasingly opt out of traveling to the United States, duty-free stores like Boutique Hors Taxes de la Beauce are feeling the effects. Owner Éric Lapointe expressed concern over the plummet in his business, reporting only three customers on a recent afternoon. He noted that foot traffic has declined by 60 percent compared to the same period last year.
This downturn isn’t isolated. Similar observations have emerged from duty-free shops nationwide that are still recovering from the fallout of pandemic-related travel restrictions. Current reports indicate a significant downturn in customer visits as Canadians choose to stay closer to home.
Duty-free stores, regulated by the Canada Border Services Agency, are unable to shift to online sales or deliveries, further complicating their ability to adapt to the changing travel landscape. Lapointe emphasized that without cross-border travelers, his customer base effectively vanishes.
Decreased Cross-Border Travel
Recent data shows declines in sales at duty-free outlets have ranged from 40 to 50 percent since late January, with some areas experiencing drops as severe as 80 percent, per the Frontier Duty Free Association, which includes 32 member stores.
“It’s been a drastic drop,” stated Barbara Barrett, the association’s executive director, characterizing the situation as dire. Statistics Canada reported a significant reduction in round trips by Canadians to the U.S. in March, showing a 13.5 percent decline in air travel and a 32 percent dip in land travel.
This reduction in travel can be linked to shifting preferences toward domestic tourism, coupled with geopolitical tensions and trade disputes initiated by the U.S. government. Canadians are also expressing anxiety over potential scrutiny from U.S. border officials. Stories of detention and custodial challenges faced by some travelers have emerged, heightening apprehension about crossing the border.
Canadian Jasmine Mooney, who experienced an 11-day detention in the U.S. over visa issues, has shared her unsettling experience, echoing fears voiced by many travelers. Reports also indicate that visits to Canada by American citizens have dropped by 11 percent, marking a continued trend of decreased cross-border traffic.
Appeals for Assistance
As duty-free establishments grapple with these unprecedented challenges, the Frontier Duty Free Association is advocating for federal government assistance through grants or loans to help them survive this turbulent period.
Many of these businesses are still in the recovery phase from pandemic losses. John Slipp noted, “I just woke up from my COVID hangover, and now I’m facing a tariff nightmare,” underscoring the financial strain many owners are experiencing.
One such owner, Cameron Bissonnette from Osoyoos, B.C., expressed fears for the future of his family-run duty-free shop, which has been operative since the 1980s. He wept as he discussed dwindling staff numbers, down from 15 to just three, indicating the profound impact the declines have on both the business and his community. Osoyoos Mayor Sue McKortoff has highlighted the store’s importance to the town, which relies on its economic contribution and community support.
As the Easter long weekend approaches, Lapointe remains hopeful for a rebound in sales but has indicated that without a significant uptick, layoffs may become inevitable. His connection to the shop is deep-rooted; he started working there as a student and has since taken on various roles, ultimately purchasing the store.
“For me, that store is my home,” Lapointe shared, revealing just how much the business and community mean to him as he navigates these challenging waters.
Information derived from reports by The Canadian Press and interviews conducted by CBC B.C.
Source
www.cbc.ca