The US Government recently imposed a travel ban for tourists traveling to the States from Europe. This measure is in line with intensified efforts to prevent further spread of COVID-19 into the country. However, it is also one with many economic repercussions. Today, Canada scrambles to decide on whether to follow President Trump’s lead, especially as the two countries share a border.
As a result, stocks quickly plummeted, with losses far more severe than those incurred by investors during the infamous Black Monday crash back in 1987. The TSX went down 12 percent, while the Dow Jones dropped 10 percent last Thursday.
This move by the US government, together with its national emergency declaration, sends shockwaves not just within its territories, but also outside its nation.
How is Canada Affected by the Tourism Issues
The challenges and setbacks experienced by Canada concerning tourism are already causing unprecedented damage to the economy. Travel and event cancellations and restrictions may be slowing down the spread of the virus, but it is also affecting various Canadian sectors. Employment is down, tourism spending is low, and citizens are afraid of the implications of such drastic changes to job security, income, and their way of life
Problems in Canada’s tourism industry are causing a domino effect that’s making the nation’s economy more volatile. Fewer tourists also mean lesser sales, and low turnouts for mass gatherings mean deficits instead of profits. Everyone’s pockets are taking hits due to the virus, and there’s nothing left to do except ride the crisis out.
And although the Canadian government’s plans to maintain balance and keep the economy afloat remains robust, the low activity and tourism numbers will cause a considerable dent in the marketplace, but only temporarily.
Tourists love to visit Canada for many different things. One of the major reasons why international travelers love to visit Canada is entertainment and gaming. Tourists love to visit big cities in Canada and have a wonderful time in slots casinos. Gambling is legal in Canada and it’s the main competitor of Las Vegas. Unlike Las Vegas, the Canadian model of gaming is different. Travelers have a chance to see the major cities of the country and bet on their luck there. Las Vegas is the only place where travelers can enjoy gambling while Canada gives gaming tourists to play in every city. Canada gives more benefits to tourists along with gaming and that’s why international travelers are very important for Canada. The covid-19 outbreak has already impacted negatively on the tourism industry worldwide. Not only the Canadian tourism sector but the whole world will taste the bad results in 2020. The tourism industry would be the main sector where the Canadian government must stimulate local businesses to let the economy work properly again but it’s unlikely to happen in the near future.
The United States Bans European Tourists
The US travel ban in line with the COVID-19 outbreak covers 26 Schengen countries, excluding the United Kingdom and Ireland. However, Trump recently mentioned the possibility of adding the UK to the list should the need arise.
The said ban imposed by the Trump administration will last 30 days, but will only affect those that are not US citizens. According to reports, citizens will be allowed to return home from their travel to Europe but must undergo the necessary screening measures to ensure that they are not carriers of the virus.
Should Canada follow US Lead on Travel Ban
Canada faces a tough decision with regards to following Trump’s lead with regards to closing its borders to non-citizens coming from Europe. Should Prime Minister Justin Trudeau immediately follow suit? Canadian officials and business leaders do not seem to think this is the best way, as they implored Trudeau to avoid overreacting to the situation.
The Canadian business sector believes there is a better and more efficient way to prevent potential virus carriers from crossing the nation’s border, without closing off access to the vast American market.
According to Perrin Beatty, the Canadian Chamber of Commerce’s President, there is no need for Canada to mimic the US in this situation. However, the country must proceed with caution, slowly watching for border concerns and challenges in doing business with the US. Finding the right balance between protecting the people and Canada’s economy should be the priority, instead.