FDFA Newsletter - February 2019

ADVOCACY IN ACTION

Executive Director Update

Executive Director, Barbara Barrett meets with senior officials at Finance Canada.

Executive Director of the FDFA met with Ian Foucher, Deputy Director of Policy at Minister Morneau’s Office. She also met with Phil King, Director of Sales Tax division. The main purpose of these meetings was to discuss the return of the Visitor Rebate Program.

Visitor Rebate Program

We were able to highlight the benefits of a visitor rebate program on the tourism industry and the visitor economy in Canada, as well as the impact on our industry and Canadian businesses since the program was cancelled in 2007. In fact, a study by the Retail Council of Canada (RCC) shows that since the program was cancelled, there has been a net revenue loss for the federal government and a decline in spending by foreign visitors. Canada is the only OECD country with a federal sales tax that does not have a visitor rebate program. The Retail Council of Canada study found the following:

Key Elements from Analysis

During the open dialogue, Finance Canada’s officials informed FDFA that the program was cancelled mainly due to administration cost and low uptake numbers. They have also indicated the program was cumbersome and the intended results were not obtained. However, they were open to hear our viewpoint and to continue the engagement with stakeholders on this important issue. There was further discussion around the contribution of duty free stores to the Canadian economy and taxation issues.

Going Forward

With the 2019 federal election right around the corner, FDFA aims to ensure that government are aware of the importance and challenges of the duty free industry. Our issues are bipartisan in nature and it has been our approach to engage with members of parliament from all political stripes.

Overall, these meetings were productive as we were successful in positioning FDFA as a key industry stakeholder. We will continue to work with our partners like RCC and TIAC to promote the reinstatement of a visitor rebate program in Canada.

SOCIAL MEDIA HIGHLIGHT

OUTREACH:

THE MISSING CHILDREN SOCIETY OF CANADA

The Frontier Duty Free Association is proud to support the Missing Children Society of Canada for another year. Since 2014, FDFA members have donated over $63,000, directly helping MCSC reunite families with missing children.

The Missing Children Society of Canada is a made-in-Canada success story helping investigators across the country with cases affecting our most vulnerable population. After a child is missing, they are at an increasingly high risk of being exposed to activities such as; substance misuse, sexual exploitation, human trafficking and even death.

According to MCSC, police receive over 47,000 reports of missing children every year. Supporting MCSC means that we can help reduce the risk to harmful exposures, and ultimately increase the safety for Canadian children.

The Frontier Duty Free Association is looking forward to expanding this relationship, helping to reunite families, and continuing our support for the Missing Children Society of Canada.

FEATURE SUPPLIER OF THE MONTH:

Pernod Ricard Travel Retail America is a division of Pernod Ricard, a co-leader in wines and spirits around the world. Pernod Ricard’s brands cover all wine and spirits categories. Most of them are more than a hundred years old and call terroirs of the greatest origin appellations home, combining every day the best of their history with state of the art elaboration techniques.

Thank you Pernod Ricard Travel Retail America for being a significant supporter of the FDFA and Canadian duty free for many years – How can we forget the Absolute Lime Bar from the Opening Cocktail Event at our convention last year!

Questions or Comments? Get in touch!

Allison Gardner | Manager of Operations | 613-688-9788 | [email protected]

Barbara Barrett | Executive Director | 613-688-9788 | [email protected]