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COVID-19 devastates hospitality industry; numerous layoffs, hotel bookings plunge

Storehouse Bar and Grill in Iqaluit. Rajnesh Sharma/NNSL photo
The Storehouse Bar and Grill, pictured, the Legion and the Chart Room were forced to shut down as of the end of the day Thursday due to Nunavut's public health emergency precipitated by the coronavirus COVID-19. Rajnesh Sharma/NNSL photo

As of today, there are no bars open in Nunavut and restaurants can only serve takeout meals.

The Storehouse Bar and Grill, pictured, the Legion and the Chart Room were forced to shut down as of the end of the day Thursday due to Nunavut's public health emergency, precipitated by the coronavirus COVID-19. It's unknown when they'll be back in business.
Rajnesh Sharma/NNSL photo

More than 100 staff at Iqaluit bars and restaurants have lost their jobs due to COVID-19 and the resulting public health emergency measures.

SA国际影视传媒淭here's a huge impact to the business itself but (also) to community members here in Iqaluit. It's 60 jobs that are taking a hit,SA国际影视传媒 said Steve Sullivan, general manager of the Storehouse Bar and Grill, the Frob Kitchen and Eatery and and the Frobisher Inn.

Guest reservations at the 95-room Frobisher Inn have plummeted over the past few weeks, Sullivan acknowledged.

He said Nunastar Properties -- the parent company of the hotel, restaurant and bar -- will assist its laid off employees in arranging for employment insurance and also help some of them with travel to be with family.

SA国际影视传媒淲e're working with everybody to minimize the impact... to let them know that they're not alone,SA国际影视传媒 said Sullivan.

The company is also promoting job-sharing where applicable to spread employment hours around as much as possible, he added.

At the Iqaluit Legion, manager John Graham said there was a lot of fast-flowing information to process from the territorial and federal governments, which the Legion's board would have to review and act on.

SA国际影视传媒淲e hear lots of announcements on the television SA国际影视传媒 the government seems committed to providing resources but, I mean, as of this hour we don't know how to access that yet,SA国际影视传媒 he said. SA国际影视传媒淚t's going to be on the to-do list.SA国际影视传媒

Not only are 36 full-time and part-time Legion staff affected, but so to are daycares, cadets and other groups that benefit youth and elders which will lose their share of funding from the Legion's profits, Graham noted.

He acknowledged that the number of patrons at the Legion had dropped substantially over the past few weeks as concern over COVID-19 grew.

Milan Mrdjenovich, owner of the Chartroom sports lounge, couldn't be reached for comment. However, he posted a tweet on March 18 that referenced the pandemic and a March 17 break-in at his Iqaluit business.

SA国际影视传媒淒ue to last night's robbery at the Chartroom, as well as the current situation with the Coronavirus, we have decided to shut the Chartroom down until further notice,SA国际影视传媒 Mrdjenovich wrote on Twitter.

Despite the uncertainty of the moment, Sullivan expressed optimism that this bleak period will pass and a rebound will occur.

SA国际影视传媒淲e want our staff to know that, as a company, we're not going anywhere,SA国际影视传媒 he said. SA国际影视传媒淲e've been here for 50 years. We will be back and we'll be stronger than ever.SA国际影视传媒

Among the $82-billion financial aid package that the federal government announced earlier this week in response to COVID-19 was the extension of the Work Sharing Program to 76 weeks. This program provides employment insurance benefits SA国际影视传媒渢o workers who agree to reduce their normal working hour as a result of developments beyond the control of their employers,SA国际影视传媒 according to the Government of Canada.

There's also a 10 per cent wage subsidy lasting up to three months, up to a maximum of $1,375 per employee and $25,000 per employer.

The Business Development Bank of Canada and Export Development Canada have been given $10 billion in credit targetted at small and medium-sized businesses.

The new Indigenous Community Support Fund consists of $305 million to address immediate needs in Inuit, First Nations and Metis communities.



About the Author: Derek Neary

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