Canada’s duty-free sector is facing an existential crisis as cross-border travel plunges and federal support remains elusive. Longtime business owners like John Slipp, who has operated the Woodstock Duty Free Shop in Belleville, New Brunswick, for over three decades, say time is running out.
“This could be it,” Slipp told CTV News. “We’re down nearly 60 percent this summer compared to pre-pandemic levels. If things don’t turn around, we’ll be forced to close in six weeks.”
Slipp says the store, located near the Maine border, was already operating at a 20 percent loss by the end of 2024. But a sharp decline in Canadian travellers this year has pushed his business to the brink.
“Canadian travellers are our lifeline,” he said. “When we lose the summer tourism season, we lose everything.”
The Frontier Duty Free Association (FDFA), which represents 32 land border duty-free stores across the country, confirms the downturn is widespread and severe. Members are reporting revenue losses ranging from 60 to 80 percent, citing trade tensions, limited border traffic, and competitive disadvantages with U.S. duty-free shops.
In response, the FDFA has partnered with 15 mayors from Canadian border communities to press the federal government for immediate relief. Their proposals include:
- Financial support for border shops
- Rent deferrals for businesses leasing federal land
- Temporary closure flexibility with reopening protections
- Tax and export policy realignment to level the playing field with U.S. operators
So far, however, there has been no response from Ottawa beyond the emergency funding offered during the COVID-19 pandemic.
Slipp, who has spent the past year downsizing and advocating for policy reform, warns that without urgent intervention, at least six more border shops across the country could shut their doors by the end of the summer.
“This isn’t just about my store in Woodstock,” he said. “If you’re heading to the U.S., please consider supporting your local duty-free. That decision keeps jobs alive, supports border communities, and keeps money in Canada.”
As peak summer travel approaches, operators fear that unless foot traffic rebounds and federal aid arrives soon, Canada could see a permanent contraction of its land border duty-free industry — a blow to tourism, trade, and dozens of small towns that rely on it.
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