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Waiving Crown resource fees is good news say northern Ontario tourism groups

'They operate on crown land and must pay annual fees for land use permits. Bear outfitters also pay annually for resource access and bait harvesters pay annual fees to harvest baitfish to supply our angling market'
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A decision by the Ontario Government to waive 2022 fees for hard-hit resource-based tourism operators is being applauded by groups representing the tourism industry.

Nature and Outdoor Tourism Ontario (NOTO) and the Tourism Industry Association of Ontario (TIAO) say there are over 1,000 seasonal lodges, resorts and campgrounds across northern Ontario that are struggling to survive the economic fallout of the COVID-19 pandemic. These businesses cater to anglers, hunters, outdoor recreationists from all over the world.

There are about 400 bear outfitters across northern Ontario, NOTO Executive Director Laurie Marcil told BayToday in an interview.

It can mean some big money to these outfitters. Fees are based on outposts, which is one cabin on a piece of land that requires a permit of about $1,000 a year. An outfitter may have between five to 40 cabins, paying fees for each one, explained Marcil.

"These businesses and their guests contribute over $400 million in GDP which is retained in northern Ontario during a 4 to 5-month operating season," says a news release. "The remote sector which includes fly-in and train-in experiences, have been particularly impacted. They operate on crown land and must pay annual fees for land use permits. Bear outfitters also pay annually for resource access and bait harvesters pay annual fees to harvest baitfish to supply our angling market."

Owner of Garson’s Fly-in Outposts and President of NOTO Bob Garson said, “The 24 months of little income that we have been able to earn goes to paying the many bills that did not stop. By waiving these fees, we have been able to concentrate on staying in business in hopes of getting to a spot where we can resume being a sustainable business.”

Remote operators and bear outfitters cater predominantly to the US and International markets and have been cut off from their clientele effectively since March 2020 when the pandemic closed borders. Despite major efforts over the last two years, these businesses have not been able to rebound like other tourism operations, and relief from permit fees will support their economic recovery.

“While we are beginning to see light at the end of the long tunnel of restrictions, which may allow more travel to resume this year, reopening does not mean recovery,” notes Marcil.  “We cannot forget the great deal of newly acquired debt that tourism businesses have had to take on to keep the lights on for two long years. The road to recovery will be long for tourism operators in the North."

A recent TIAO study revealed tourism businesses in northern Ontario will take until at least 2024/2025 to return to pre-COVID revenue levels and financial stability.

"With 82 per cent of tourism businesses still citing revenue loss as their biggest threat, 7 in 10 operators are in debt, and most are unable to resolve these debts for at least 2-3 years (or more), and 1 in 4 operators struggling to hire due to the labour crisis, recovery has been slow—especially in northern Ontario," explains the release.

Tourism Industry Association of Ontario President and CEO Chris Bloore said, “The catastrophic economic consequences of the COVID-19 pandemic have been especially severe on northern Ontario's tourism businesses. For two years, businesses have reported as high as a 93 per cent decline in revenue, forced to lay off workers, and have accumulated large amounts of debt to survive. Despite the recent positive news on the removal of restrictions on businesses, the barriers to travel across international borders and low consumer confidence means it could take several years for operators to see a sustained upturn in bookings."