Mr. Speaker, three well established tourism businesses in the Yellowknife region are closing the doors, if they have not closed them yet. I don’t feel comfortable mentioning their names, because I know only one, as of yesterday, gave notice to employees, and I can’t speak to the other two specifically.
Their issue for closing their doors, they told me, is the economic climate, the slowdown in tourism, and there is concern that the support levels might not be there from the Department of Industry, Tourism and Investment. Setting that sort of framework up, my questions are directed, of course, to the Hon. Bob McLeod, Minister of ITI.
I don’t want to cry doom and gloom, but this is not a good situation in this climate, Mr. Speaker. I’d like to know what the Minister of ITI is doing to make sure if there is any way to turn some of this around. What type of work is he doing so other tourism businesses don’t follow the same lead as these three well established businesses, by closing their doors because of this problem?
Thank you, Mr. Hawkins. The honourable Minister of Industry, Tourism and Investment, Mr. Bob McLeod.
Thank you, Mr. Speaker. The tourism industry is facing a number of challenges these days for a number of reasons: partly the volatility of the financial market, the currency exchange rate, and there seems to be a trend to move away from the consumptive sports — hunting and fishing — toward more adventure, ecotourism opportunities. As a department we recognized this several years ago, and we put forward a number of different diversification and marketing programs to help existing operators develop new tourism products.
Mr. Speaker, I would like to see if the Minister would expand as to what marketing program he has. Does he have a financial program that can help these tourism companies switch their types of products? Typically a hunting lodge, as an example…. They weren’t necessarily in the eco business, and this is a big shift on how they market their lodge and market their products and timing. What is available, exactly, to these groups?
The Tourism Product Diversification and Marketing Program was introduced last year. In total, $687,000 was approved for ten businesses and organizations this past year. We have regular banking days, and the total program over the three year period is about $2.5 million.
Some of the problems I have heard is potential cash flow to make sure they can keep their business afloat during these rocky times. Does the department consider any type of option like this?
Through the BDIC board we do work with different companies and through the business programs of this government. We make every effort to work with them to get them through this difficult period.
Thank you, Mr. McLeod. Final supplementary, Mr. Hawkins.
Thank you, Mr. Speaker. I’m not trying in any way to catch the Minister off guard, but is he is aware of any type of financial dollars that will be lost if some of these loans in respect to the BDIC.... He knows the companies I’m referring to. Does he have any idea or is his department doing any reconciliation about the type of loan dollars that would be lost when these companies go out of business officially?
I don’t have a specific number, but I do know that we’ve been working with some of the operators to continue operations for several years. I expect some of the individual operators would have some significant loans, but I don’t have that information right now.
Thank you, Mr. McLeod. The honourable Member for Sahtu, Mr. Yakeleya.
