Further to "Traditional Bed and Breakfasts' Fight for Gov't Supports" published here on May 10 and reprinted with permission of the author.
The impetus for the interview/article in Saturday's Chronicle Herald was a letter that Terri, Suzie and I sent to the Premier and Labi Kousoulis and also sent to the Chronicle Herald. Below is a response that I wrote addressing the comments that Labi Kousoulis made in the article.
Dear Editor,
Thank you for Bill Spurr's informative story. Prior to reading this, many people had no idea that B&B's were no longer regulated or that B&Bs do not qualify for any of the provincial small business assistance. It is necessary however, for me to correct some of the assumptions that Minister Kousoulis made in his response to questions after cabinet on Thursday.
Minister Kousoulis said:
1. “As accommodation sites, they [B&Bs] were not ordered to close and they can still have revenue.”
Since the whole province is 'shut down', travel restrictions do not allow those from other provinces to come here or allow for Nova Scotians to leave their communities....where does the Minister think B&Bs will get their revenue? It sounds like he is using a 'loophole' to not have to offer assistance.
2. “There are tons of programs out there...payroll rebates, they could look at that.”
To qualify for a payroll rebate, one would actually need to have a payroll. At the best of times B&Bs cannot afford to hire staff. Now with no tourists, why would we need staff?
3. “These programs are targeted at the most severely impacted.”
In actual dollars B&Bs and other small businesses may not be as severely impacted as the large businesses that cater to millionaires, but in percentages, I would say that a decrease in revenue of 70 to 90 % is a severe impact.
4. “If you are comparing a hotel/motel or a large-scale bed and breakfast, it is a much different model to someone living in a home providing one, two or three rooms as a bed and breakfast.”
Firstly, there is no such thing as a “large-scale” B&B. Under the previous legislation to be a licensed B&B it was required that the owner occupy the home and that there be no more than 4 rental rooms. Therefore, all traditional B&Bs have 4 or less rooms. Like hotels and motels we rely on tourism, unlike hotels or motels we are not set up for individuals to quarantine, so that is not a source of revenue.
As pointed out in the original article, one program offered by the province last week, provided a grant of 15% of sales revenue for either April 2019 or February 2020. Not only are those ludicrous months to look at for a mostly seasonal industry, a one time grant of 15% of one month any time of year for a small business is not going to be enough to pay any significant bills.
As the three B&B owners stated in their op-ed (which was the impetus for Bill Spurr's story) due to Covid 19 - and sadly due to the government's lack of support for the industry, traditional, professionally run bed and breakfasts may cease to exist. The traditional and historical bed and breakfasts that have been the cornerstone of tourism in many rural communities around our province may disappear, along with the tourists that brought money into these communities with them.
--
Cathie Watson
By the Bay Bed and Breakfast
Glen Margaret, NS
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