Economic Impacts of COVID-19 on Accommodations in Atlantic Canada
- Hotels and other accommodations have had their businesses drastically reduced by COVID-19.
- APEC estimates that most accommodation businesses in Atlantic Canada have had their revenues and employment decrease by as much as 80% in recent weeks.
- This would equate to as much as $60 million in lost revenues in April, and upwards of 7,500 layoffs.
- If physical distancing and travel restrictions continue into the summer months, as seems increasingly possible, revenue losses will increase. Overnight stays peak in the summer months and vacationers may be reluctant to travel even in their own province. This will impact a large number of small seasonal establishments, including cottages, RV parks and campsites.
- There are more than 2,200 accommodation business locations in Atlantic Canada. Of these, 80% have less than 10 employees, and 96% have less than 50 employees.
- Over 14,000 Atlantic Canadians were employed in the accommodation industry in 2019, representing 1.3% of total regional employment. Employment is 35% higher in the peak summer tourism season.
- Average earnings in the accommodations industry are 45% below the all-industry average, at $518 per week.
- Total revenues for accommodation businesses in Atlantic Canada were more than $1.2 billion in 2018.