Steady decline in border crossings impacting N.B. operators for better or worse
Cross-border traffic between New Brunswick and Maine is still on the decline, and these changing habits are impacting operators differently.
According to the latest data from U.S. Customs and Border Protection, 13,000 fewer people crossed the border in April, compared to March. And year over year, 70,000 fewer people, or 38 per cent, crossed the border.
John Slipp, owner of the Atlantic Travel Centre duty-free shop at the Woodstock border crossing, is concerned. He said his shop will last just months if conditions don't change.
"Traffic is certainly way down … it's like a ghost town here at the border, there's not much activity," Slipp told CBC Radio's Shift.
Traffic in his store has dropped by 32 per cent from January to May, compared to last year.
Slipp said the decline comes as the store is still recovering from COVID-19, which forced his store to close for a year and a half.
At the end of last year, the store was down 20 per cent from 2019 and this new figure is an additional loss.
"We still hadn't climbed all the way out of the COVID hole and now we're experiencing tariff nightmares," he said.
Slipp said the situation is not sustainable.
LISTEN | Decline in border crossings impacting operators across the province
He's been in touch with the Canadian Border Services Agency and provincial and federal government programs, trying to find solutions and support for his business.
"The struggle we have is, where we are not a manufacturer exporting goods, they struggle to understand how we should qualify," said Slipp.
There are 32 duty-free shops at land borders in Canada, he said, and they are all struggling.
"I talk to my colleagues quite often and we're all telling the same story."
Slipp said Victoria Day weekend is usually when he expects an uptick in traffic that lasts until Thanksgiving weekend, "but not this year."
He said fewer Americans are crossing into Canada because of an expected increase in the level of scrutiny at the border.
"Americans are not keen to be anywhere near a border during this time, so not only are we not expecting a quick return to Canadian traffic even after the tariffs are removed, we are also not expecting a quick return of American traffic due to these immigration and border anxieties," said Slipp.
He said the majority of people he's seeing cross the border are Americans travelling to Canada to visit family and truck drivers, but "almost no Canadians."
Slipp said a federal rent deferral program would be helpful to businesses like his, as well as the opportunity for duty-free licensees to temporarily close.
He would also like to see the provincial government offer loans to struggling businesses and advice on how they can pivot.
Slipp said without some support, he doesn't see duty-free stores like his lasting through the summer.
It seems these impacts are being felt in Maine, too. Just this week, Maine Governor Janet Mills unveiled new signs that will be installed across the state to "warmly welcome Canadian visitors."
According to a news release from the office of the governor, these signs will also be available to Maine businesses for use during the tourism season.
Mills said, while a sign can't stop the "harmful policies" coming from Washington, she hopes they will send a message to Canadians that they are valued and will be treated with respect.
Mills and five other governors from New England and New York will meet with Canadian premiers in June to discuss ways to promote regional tourism.
Back in New Brunswick, some operators are benefiting from people in the province wanting to stay put.
Pat Gauvin and his partner opened Cielo Glamping Maritime on the Acadian Peninsula in 2019. He said the summer season is kicking off earlier this year.
"It's looking like it's going to be even busier this summer," he said.
Over in Saint Andrews, Windsor House proprietor Jay Remer said he's also seeing more bookings than usual.
"I think the bookings this year have been stronger — advance bookings — than last year," he told CBC Radio's Shift.
"It reminds me of a couple of years ago when we were dealing with COVID and we were having more bookings from people in Canada."
Remer said while Canadian bookings are up, American bookings are down, although Canadian bookings are making up for lost American bookings — "maybe even more so."
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