If business doesn’t improve soon at his duty-free store, Éric Lapointe indicates that laying off employees may be necessary.
“I’ve only had three customers today,” mentioned the store proprietor in a conversation with As It Happens host Nil KÓ§ksal. “It’s a fraction of our usual traffic for this time of year.”
Lapointe notes a significant 60% decrease in business compared to the same period last year at the Boutique Hors Taxes de la Beauce near Quebec’s border with Maine.
This decline is not isolated, as duty-free shops nationwide are witnessing substantial drops in revenue due to Canadians increasingly avoiding trips to the U.S., following the impact of pandemic-related travel restrictions.
Authorized by the Canada Border Services Agency at 52 land border and international airports in Canada, duty-free outlets offer tax-free alcohol and other products to cross-border travelers, with limitations on transitioning to online or delivery services.
“Without U.S.-bound travelers, our customer base diminishes,” Lapointe emphasized.
Fewer Visits Down South
Sales at duty-free stores have plunged by 40% to 50% across the country since late January, with some remote border crossings experiencing declines of up to 80%, reports the Frontier Duty Free Association, representing 32 such establishments.
“The decline has been drastic,” expressed Barbara Barrett, the association’s executive director. “The situation is dire.”
Statistics from Statistics Canada reveal a notable reduction in return trips by Canadians to the U.S. in March compared to the previous year, with air travel decreasing by 13.5% and land travel by 32%.
This trend coincides with a shift towards domestic tourism amid escalating trade conflicts initiated by U.S. President Donald Trump against Canada and other nations, along with threats to Canadian sovereignty.
Several Canadians have canceled travel plans due to concerns about increased scrutiny by U.S. border officials, as highlighted in recent incidents involving travelers from Canada, Germany, and Wales.
“Cross-border land travel decline is a two-way street, with U.S. car visits dropping by 11% last month, marking the second consecutive year-over-year decrease,” noted Philippe Bachand, operator of a duty-free store south of Montreal, referencing incidents where American sports teams faced negative reactions in Canada.
Appeals for Assistance
Amid challenges arising from trade tensions and geopolitical issues beyond their control, the Frontier Duty Free Association is urging the federal government to provide financial aid such as grants or loans to help these stores navigate the disruptions.
The association emphasizes that many of these stores are still recovering from losses incurred during the pandemic.
“Just as we were emerging from the pandemic, we’re now facing tariff issues,” lamented John Slipp