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

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

Alberta reported an additional 399 cases of COVID-19 Thursday, on 9,217 tests, for a test positivity rate of 4.3 per cent. (Image courtesy CDC)
Red Deer down to 562 active COVID-19 cases

8 new COVID-19 deaths, 399 additional COVID-19 cases

Alberta premier Jason Kenney, right and Doug Schweitzer, Minister of Justice and Solicitor General, provide details about Bill 13, the Alberta Senate Election Act., in Edmonton Alta, on Wednesday June 26, 2019. THE CANADIAN PRESS/Jason Franson
Minister Doug Schweitzer talks on Enhanced COVID-19 Business Benefit

Provincial government rolling out new benefit this April to better help small businesses.

Mike Ammeter (Photo by Rebecca Hadfield)
Sylvan Lake man elected chair of Canadian Canola Growers Association

Mike Ammeter is a local farmer located near the Town of Sylvan Lake

City of Red Deer has nearly doubled its active COVID-19 case count since Feb. 10 and has 75.6 per cent of the Central zone’s active cases. (File photo)
Another new high: Red Deer hits 574 active COVID-19 cases

Province reports 13 new COVID-19 deaths, 430 new cases

Alberta chief medical officer of health Dr. Deena Hinshaw reported 11 additional deaths over the past 24 hours. (photography by Chris Schwarz/Government of Alberta
Red Deer active COVID-19 cases drop slightly

Province reports 267 additional COVID-19 cases, 11 new deaths

Bookings for COVID-19 vaccines for people age 75 or older start Wednesday. (File photo by THE CANADIAN PRESS)
Updated: Delays for seniors booking for vaccine appointments

By 9:20 a.m. Wednesday, 4,500 seniors had booked their appointments

Sylvan Lake's Winter Village lured many visitors to the town this winter. The town has launched a new contest to attract a new business.
(Black Press file photo)
Sylvan Lake offering rent-free storefront space to lure new businesses

Winning business proposal will get a storefront space rent-free for a year

NDP leader Jagmeet Singh holds a press conference on Parliament Hill in Ottawa on Wednesday, Feb. 24, 2021. THE CANADIAN PRESS/Sean Kilpatrick
NDP will not trigger election as long as pandemic continues: Singh

‘“We will vote to keep the government going’

Students and staff at Gateway Christian School wore pink Wednesday in support of Pink Shirt Day, a worldwide anti-bullying initiative that was started in 2007. (Photo courtesy of Red Deer Public Schools)
Students, central Alberta community celebrate Pink Shirt Day

Mayor of Sylvan Lake Sean McIntyre supports anti-bullying cause

Minister Rick Wilson poses with Katie at the Boys and Girls Club of Wetaskiwin, both wearing her Pink Shirt Day design. Facebook/ Boys and Girls Club of Wetaskiwin.
Wetaskiwin Boys and Girls club Pink Shirt day design focuses on kindness

Katie with the Boys and Girls Club of Wetaskiwin created this year’s Pink Shirt Day design.

Black Press File Photo
Valentine’s Day shooting in Maskwacis leaves one male in hospital, one male in custody

19-year-old Francis Edward Nepoose from Maskwacis has been charged with attempted murder.

Red Deer Court of Queen’s Bench Justice Anne Kirker is expected to sentence Satnam Singh Sandhu on Friday. Red Deer Advocate file photo
Updated: Sylvan Lake man pleads guilty to manslaughter for strangling wife in 2019

Kulvinder Sandhu was strangled and died in hospital several days later

Sentencing delayed in the stabbing death of Samantha Sharpe, of Sunchild First Nation. (Red Deer Advocate file photo)
Central Alberta man not criminally responsible for killing his father in 2020: judge

Psychiatrist testified Nicholas Johnson was psychotic when he killed his father

Most Read