Alberta leading Western Canada in using Ottawa’s financial help
Alberta: A compounding pile of economic issues has Alberta leading all of Western Canada in utilizing Ottawa’s financial help during the pandemic.
Melanie Joly, the federal minister of economic development, said while there has been using across the prairies and British Columbia that “demand is higher from Alberta.”
The minister says the province has been lapping up funding provided through federal initiatives like wage subsidies, business loans, industry-specific help, and Western Economic Diversification Canada’s budget.
“There’s a clear uptake in the assets coming directly from Alberta for these new funds,” Joly said. “Definitely we’re seeing that Alberta is very hard hit.”
Oil prices and COVID-19 have decimated the province’s economic prospects.
Estimates show that Alberta’s deficit could hit $20 billion in this fiscal year and the debt-to-GDP ratio could double to 20 percent. Premier Jason Kenney has warned of a “great fiscal reckoning” on the horizon.
Western Economic Diversification Canada recently threw a small $3.45-million life preserver to tourism sectors in Alberta and other western provinces. Travel Alberta will get about $1.5 million of that.
The federal government expects 500 businesses in the province will benefit from the funding. That’s barely two percent of Alberta’s 22,000 tourism-related enterprises.
Travel Alberta is excited at the prospect of more capital but says Ottawa’s approach could need tweaking.
“This is not a one-time solution. This is the rebuilding of our industry,” Shelley Grollmuss, a vice-president, said.
Alberta welcomes millions of tourists each year.
Those visitors contribute just under $9 billion to the provincial economy every year and support more than 125,000 jobs.
Things are different this year — and the money Ottawa has made available so far is only a fraction of what the industry will need to bounce back.
“It’s a long-term commitment,” Grollmuss said.
Tourism will be a big focus of federal help and dollars in Alberta as the country slowly emerges from the pandemic. This latest infusion won’t be the end of help for Alberta, Joly said.-PUNA
It’s a long-term commitment