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Hamilton Spectator
09-06-2025
- Business
- Hamilton Spectator
Border traffic freefall jeopardizes duty free shop
Mayor, MP joins national call to help border stores survive John Slipp says 'traveller anxiety' is not how the Woodstock business owner wanted to celebrate the 40th anniversary of the Woodstock Duty Free Shop Inc. Canadian reaction to President Donald Trump's annexation threats, chaotic tariff announcements, and increased border scrutiny add up to a dearth of visitors driving by his Woodstock Duty Free Shop en route to the Houlton, Maine border crossing and an uncertain future for his store. 'We have no plans for our anniversary. Given the conditions we are in, there's not much to celebrate at the moment. It's kind of bittersweet. It was a very special time 40 years go when Dad opened the business…. It's sad to see it all come to an end,' Slipp said. No traffic means no business for The Woodstock Duty Free Shop, a dilemma repeated at 32 land border duty free stores across Canada. The Frontier Duty Free Association, a national association of land border duty free shops, conducted a March survey of owners on how long they could remain open under the current climate. Slipp and one-third of the other store owners said three to six months. 'I have been talking to other colleagues at other crossings with stores that are similar in size and have similar concerns… Canadians are not looking to travel to the United States… We are also finding that Americans are experiencing border anxiety as well because of the immigration enforcement in the United States. A lot of Americans don't want to be anywhere near a border,' Slipp said. 'This is not just this border crossing, it's nationwide.' Woodstock Mayor Trina Jones said the Woodstock Duty Free Shop 'offers a critical role' for local tourism, offering visitors a tax-free way to buy Canadian and locally made goods and products that promote Woodstock, New Brunswick, and Canada. 'It's especially important since there is no longer a (provincial) tourist bureau operating at our border location. John Slipp and his staff offer that one last chance for those visiting our area, or passing through, to purchase goods that promote us and boost our economy,' Mayor Jones said in an emailed statement. When the Liberal government announced counter-tariffs on U.S. imports to combat the American tariffs placed on Canadian exports, Prime Minister Mark Carney said the Canadian tariff revenue would help businesses affected by the trade war. Richard Bragdon, Tobique-Mactaquac Conservative MP, said counter-tariffs should support duty free shops. 'Our duty free shops like the one in Woodstock, have taken a big hit over the last several years. They just started to recover coming out of the challenges they faced during COVID, to then be affected by the tariff situation with the United States,' Bragdon said in an emailed statement. 'Funds received through counter-tariffs should be used to support affected industries which includes duty free shops.' Four decades at the border Slipp's father, George, opened the store on June 1, 1985, after the Canadian government announced licensing land border locations for duty free stores to sell goods tax and duty free to travellers leaving the country. John Slipp started working at the family business 31 years ago. 'It's been a good business most of the time. But between COVID and the tariffs, it's a different world here.' Slipp once employed 15 people at the store, which was open seven days a week, selling alcohol and tobacco products, local arts and crafts, local maple syrup, clothing, perfume and other products. The store also offers currency exchange for visitors. Now, the business owner mans the store himself, which is closed on Mondays. Slipp isn't alone. CBC reports that duty-free shops across the country have experienced massive drops in business in recent months. United States Customs and Border Protection data shows travellers entering the United States from Canada dropped almost 850,000 visitors in April. 'These businesses are not in this position because of bad management or poor decisions—this is a crisis not of their making,' said Barbara Barrett, Frontier Duty Free Association (FDFA) executive director, a national organization representing the land border shops. 'From the pandemic border closure to the current impacts of U.S. tariffs and travel disruptions, duty free stores have been disproportionately impacted at every turn. The government has committed to supporting businesses hurt by these challenges, and we are simply asking for targeted, reasonable support to prevent the permanent loss of these local employers. Our ask is modest, but the need is urgent.' Recent FDFA data shows 60 to 80 percent revenue losses at many stores. On June 3, the association joined with mayors from border communities to release an open letter to Prime Minister Carney and Minister François-Philippe Champagne asking the federal government to act now to prevent the permanent closure of Canada's land border duty free stores. 'These are not multinational chains—these are our independently-owned, family-run stores, and in many small border communities, we are the main employer,' said Tania Lee, FDFA president and owner/operator of Bluewater Bridge Duty Free. 'Our stores are an integral part of Canada's tourism fabric and border community economies, sustaining jobs and supporting the towns we call home. Today, many of us are just weeks away from closing our doors for good.' Both federal and provincial politicians have told Slipp they want to help, but he's worried about how long it will take to develop an assistance plan. 'Newly-elected cabinet minsters and members are just trying to find their way… It takes a while to get things approved. We're happy that the talking points are positive.' Slipp said the federal government introduced a lease deferral program when the duty-free stores were weathering the COVID travel ban. Slipp owns the store building, but the land is leased from the Canadian Border Services Agency (CBSA). Allowing duty free store owners to delay lease payments would be helpful. He suggested allowing duty free shops to close temporarily without any penalties and assisting with employees' wages and benefits to keep the business afloat. Slipp is worried the trained employees he had to lay off won't be available to return to work if the slowdown continues. He said using counter-tariff revenues to pay for the assistance makes sense. 'We have reminded the government that was one of their pledges and we would like to participate. The politicians speak positively and provide hope, but it is just taking too long.' 'Local tourism boost' Slipp said that when the federal government created the duty free program, licenses were awarded to local, independent, and private Canadian businesspeople. The shops had to be local stores, not large national corporations or franchises. 'The stores would capture some of the money Canadians would be spending in the United States but also capture American money from Americans returning home buying gifts or souvenirs,' he said. 'The duty-free shops are designed to promote local tourism and capture the money that would otherwise be spent in the United States to support our local economy.' Federal rules require that anything sold at a duty-free shop immediately leaves the country of origin. 'We are an exporter, because everything we sell is exported. We are not allowed to compete with local domestic retailers… Local Woodstock residents cannot come here to purchase goods and return to Canada without paying tax. That wouldn't be fair,' Slipp said. 'Americans visiting our shop have a $200 (U.S.) daily tax exemption. We encourage them to shop here and the local area.' Jones is a member of the Mayor's Border Alliance for Canada. She said border mayors are advocating with the Frontier Duty Free Association for proper federal and provincial support. 'Duty free shops have a unique challenge in that federal regulations prohibit them from selling their products here locally… I would encourage anyone in Woodstock, and all Canadians, who are still choosing to travel to the U.S. to consider stopping at the Woodstock Duty Free Shop on their way to the states to purchase goods to help them get through this tough period,' Jones said. 'We encourage the federal and provincial governments to provide financial assistance to the duty-free shops, similar to the supports provided during the pandemic, to help keep them going during this time.' Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
Yahoo
23-05-2025
- Business
- Yahoo
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."
