Struggling duty-free retailers seek financial aid due to decrease in cross-border travel
Title: Duty-Free Stores in Canadian Border Cities Plea for Aid as Revenue Drops
Hey there! Today, we're talking about duty-free stores hit hard by reduced cross-border traffic. The Frontier Duty Free Association, joined by 15 border city mayors, penned a letter to the federal government requesting cash support and clarity on export rules.
The Association shares that members' revenue is down 60-80% as less travel between countries takes place due to trade tensions with the U.S. They aim for "immediate" financial assistance to save duty-free stores that typically are key employers in smaller border communities.
The association's proposal includes aligning excise tax policies and export status with U.S. duty-free rules to boost competitiveness with American stores. They say small Canadian communities in Western and Eastern regions are facing the sharpest traffic declines.
The Frontier Duty Free Association represents 32 stores across Canada. As of now, it's unclear whether the government will grant their plea for aid. The Association continues pushing for regulatory clarity to help stabilize the industry [1][2][3].
This economic predicament is a broader challenge as decreased cross-border traffic impacts businesses beyond duty-free stores. It's crucial for addressing these issues to preserve the economic strength in border areas [5]. Stay tuned for updates on this developing story!
Source: The Canadian Press 1, 2, 3, 5
- The Frontier Duty Free Association, in their plea to the Canadian government, seeks immediate financial assistance to salvage their duty-free stores, which are vital employers in smaller border communities.
- Media outlets are reporting that the revenue of the association's 32 stores across Canada has dropped by 60-80% due to reduced cross-border traffic, particularly in Western and Eastern regions.
- As the government considers the Association's proposal, which includes aligning excise tax policies and export status with U.S. duty-free rules, it's clear that the economic struggles of duty-free stores have far-reaching implications for the Canadian business and finance industry as a whole.
