The Canadian Duty Free Association said that duty-free shops across the country are going through an existential crisis as the number of travelers crossing the border continues to decline, threatening the ability of many of them to survive until the end of the current summer season.

Parkash Rao, chairman of the association's board, stated in an interview with CTV News:

"Some of our locations may not be able to continue after August... The situation is worse than it was at the peak of the pandemic."

He explained that these shops rely almost entirely on the movement of travelers by cars and buses across the land border crossings between Canada and the United States, a movement that has not regained its vitality despite the recovery of the air travel sector.

According to the association, duty-free sales have dropped by up to 60% compared to pre-pandemic levels. Business owners also face additional challenges related to high operating costs and trade restrictions.

While the association has called on the federal government to provide targeted assistance, the Canadian Finance Ministry stated in a brief statement that it is "assessing the situation," but has not yet committed to new support measures.

It is worth noting that the duty-free sector in Canada employs thousands of workers and is considered a vital commercial lifeline in border communities, and it is now threatened with job losses and widespread closures if this decline continues.