CAC calls for Canadian arrivals duty free to stimulate post-coronavirus recovery effort

CANADA. The Canadian Airports Council (CAC) has reignited its calls for arrivals duty free in Canada as part of a number of measures designed to reinvigorate the country’s airports.

In a letter to Canadian Prime Minister Justin Trudeau, the trade body outlined how the government can help coronavirus-impacted airports by both providing short-term financial relief and introducing measures that will kick start an eventual relief.

Among the proposals to help the airport sector recover is one for a reform to duty free legislation through the introduction of duty free arrivals sales. This “would allow Canadian airports to repatriate sales from foreign airports and bring Canada’s offering to international travellers in line with those of competitive travel markets in other parts of the world,” the letter says. As reported, the CAC and Canadian airports held a lengthy campaign calling for the introduction of arrivals duty free in 2008 and 2009.

More than 32 million international passengers used Toronto Pearson International Airport in 2019, making it the second busiest international airport in North America

The letter, which says Canadian airports stand to suffer losses of C$1.8 billion (US$1.2 billion) to C$2.2 billion (US$1.5 billion) this year, called for immediate relief for the sector. The association called for rent relief for airports for at least one year to allow them to redeploy funds to maintain operations; financial relief for reduced cash flow; and flexibility on deadlines for new regulatory requirements.

The other recovery initiatives urged by the CAC include boosted funding for infrastructure; the modernisation of Canada’s border and visa policy; and increased funding for tourism promotion.

CAC President Daniel-Robert Gooch said: “While our primary concern is protecting the health and safety of travellers and airport workers, and getting people home, we are now facing the grim reality that many parts of the aviation sector could shut down without government action and relief. Traffic is disappearing, and we don’t know when it will come back.”

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