Canada’s arts and recreation businesses face greatest risk of closure: CFIB

Canada’s arts and recreation businesses face greatest risk of closure: CFIB

TORONTO — Canada’s struggling independent businesses in the arts, entertainment and recreational sectors are at the highest risk of permanently closing due to COVID-19, according to the Canadian Federation of Independent Business.

A new report released by the advocacy group says while some Canadian small- and medium-sized businesses have already been forced to close, it anticipates another one in seven risk going under because of the virus.

Topping those projections is the cultural sector, which includes an array of private businesses, ranging from fitness gyms to live concert venues, film distributors to news organizations.

Roughly 30 per cent of those are at risk of closing, the CFIB found based on a survey of its members who say they’re “somewhat” or “very likely” to wind down their operations due to COVID-19.

If those closures materialized, mid-range estimates suggest around 10,800 businesses across the country could be impacted in that sector alone.

The hospitality sector, which includes restaurants, hotels and caterers, trailed closely behind with about 27 per cent of respondents saying they see a grim future.

Closures in those key sectors would have a ripple effect through various parts of the workforce, affecting bartenders, wait staff, local musicians, tech workers, and food and drink supply chains.

Ryan Mallough, CFIB’s director of provincial affairs for Ontario, says many cultural businesses are under extra financial pressure because their profit models were never meant to sustain at around 50 per cent capacity.

“Reopening unto itself does not fix what they’ve gone through over the past four or five months,” he said.

“It’s not just that these places are closed right now, it’s that when we get to a time where they can open, they’re just not going to be there anymore.”

Mallough says CFIB members whose businesses rely on large gatherings also felt that normalcy won’t return until a vaccine is available, which some have projected at being late spring or early summer 2021 at the earliest.

This report by The Canadian Press was first published July 29, 2020.

Follow @dfriend on Twitter.

David Friend, The Canadian Press

Art

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

County of Paintearth raising alarms over proposed oil and gas assessment changes

A change in the assessment model used for oil and gas will impact the tax revenue rural municipalities collect

Alberta reports 257 new cases of COVID-19

Central zone has 157 active cases

Putting agriculture back in the classroom

Alberta teachers get first hand experience through the Canadian Agricultural Partnership’s Agriculture Literacy Program

Update: Possible drowning at Pigeon Lake involved man and woman from Edmonton

Bodies recovered from Pigeon Lake’s northeastern shores.

Sylvan Lake man’s documentary getting limited run in Alberta theatres

Scott McDermott’s documentary will be in 14 theatres, including Sylvan Lake and Wetaskiwin

Canada to match donations to Lebanon relief

Canada is directing all of its aid for this crisis directly to humanitarian organizations, not the Lebanese government

Rent-relief program becomes new front in fight between Liberals, opposition

Opposition trying to draw parallels between decision to have Canada Mortgage and Housing Corp. run program and the WE controversy

Ottawa sets minimum unemployment rate at 13.1% for EI calculation

Statistics Canada says the unemployment rate was 10.9 per cent in July

Oilers 50/50 raffle delayed as team resolves errors, offers refunds

Alberta fans who want to void any ticket purchases will have until noon Thursday

Sylvan Lake couple donates $850,000 to AACS

The doantion will be put towards a new X-Ray machine for the facility

Who can dismiss the Governor General? A look at protocols and possibilities

The Governor General is appointed by the Queen, on the advice of the prime minister

Second phase of NHL draft lottery set for Monday

Each club eliminated from qualifying round has a 12.5 per cent shot at the No. 1 pick

Collapse of Nunavut ice shelf ‘like losing a good friend:’ glaciologist

The ice shelf on the northwestern edge of Ellesmere Island has shrunk 43 per cent

13-year-old charged in death of boy, 10 in Maskwacis

The RCMP Major Crimes Unit have laid a manslaughter charge against a 13-year-old boy from Maskwacis.

Most Read