After months and months of travel discontent across Canada, the Canadian government today said it will spend $1.8 billion over five years to improve airport operations and passenger screening, and to address a backlog of airline complaints to the Canadian Transportation Agency (CTA).
Canadian Press reports the Trudeau government also is “proposing to strengthen the rules around compensation for Canadians whose travel plans are disrupted, and to give the CTA more authority to resolve passenger complaints.”
That will no doubt play well with consumers who were angered by flight delays and cancellations over the Christmas holidays, but probably not with airlines.
Multiple reports said the government will raise money for some of the costs of the improvements by hiking airport security fees – the first increase since 2010 – by an average of 33%. The Globe and Mail said fees for a one-way domestic flight will rise from $7.48 to $9.94, while the fee for an international flights will jump from $25.91 to $34.42; nearly nine dollars per flight.
It sounds like money for improving passenger screening could possibly be used to establish a “Made in Canada” trusted traveller program, which some Canadian business executives have been calling for.
The Tourism Industry Association of Ontario said key budget highlights include “a multi-year investment in destination marketing to attract major international conventions, conferences, and events to Canada; a multi-year investment to support the development of local tourism projects and events; and cutting the planned increase of the federal beverage alcohol tax from 6% to 2%.”
It said another highlight is that “eligibility for the Electronic Travel Authorization Program to low-risk, trusted travellers will be expanded to include more countries, which will be announced in the coming weeks.”
“We are encouraged by the practical, incremental policy steps taken in the 2023 federal budget to assist our sector and improve the passenger journey,” The Canadian Airports Council said in a budget reaction statement. “The positive budget measures include more screening resources for CATSA, plans to amend the Customs Act to modernize travelers’ experience at the border, and proposed amendments to the Canada Transportation Act for data sharing and reporting.
“Airports across the country welcome these new measures — they underline our vital role in the economy and will make a tangible, positive impact on the journey ahead. However, there is still more work ahead to get airports fully down the runway to recovery,” the council stated.
Meanwhile, the Association of Canadian Travel Agencies said the budget was a letdown for travel advisors.
“ACTA was discouraged but not surprised by today’s federal budget as all indications leading up to the budget were that it would be an austerity budget based on the current economic environment and the massive relief expenditures during the pandemic.
“ACTA is concerned that there are ongoing critical issues that affect travel agencies and travel advisors — especially debt relief from pandemic support. ACTA will continue to lay the groundwork for debt relief and ramp up grassroots advocacy efforts at the appropriate time. ”
The association said it will conduct “a thorough review of the budget in the coming days to identify any other items that are perhaps not top of mind but still could provide some relief, or opportunity.”
