Local boating companies are feeling the effects of the vessel luxury tax this year.
In August 2022, the federal government implemented a tax on yachts, cruisers, sailboats, deck boats, water skiing boats and houseboats priced above $250,000.
Crate's Lake Country Boats owner Jason Crate says the tax has "devastated" the retail side of the boating industry.
"Tons of jobs have been lost," he said. "People just stopped buying boats over $250,000."
The luxury tax claims 20 per cent of any boat over $250,000 or 10 per cent of the total amount, whichever is less.
"It's completely wiped out the boating industry in Canada," Crate said. "Every boat is expensive, and a vast majority of the boats sold are over $250,000."
He says there is no way for his business to overcome the luxury tax.
"We just watch our customers go to the U.S. and buy boats and leave them there," he said.
The only boat companies at this weekend's Orillia Waterfront Festival are Crate's Lake Country Boats, Pride Marine, and McGregor on the Water.
"This used to be a huge boat show," Crate said. "This waterfront used to be full of boats up to 50 or 60 feet. That's gone, and it's that way nationwide."
He says the value of a boater's contribution to the local economy is "grossly underestimated" by most government officials.
"When somebody buys a boat, whether it's a 22-footer or a 52-footer, they travel, they buy fuel, and they rent slips," he said. "We hire people to clean those boats and maintain them. They come to the Port of Orillia and go out for dinner and shop locally."
The number of boats on the water over the past few years has decreased "significantly," Crate says. He encourages those concerned about the effects of the luxury tax to contact their local members of Parliament.
"We need MPs nationwide, whatever party they're affiliated with, to have some common sense and just say this isn't working," he said.
"The whole punish-the-rich narrative, it maybe sounds good in a sound bite in the media, but it has been a colossal failure from an economic standpoint."
Pride Marine product specialist Kevin Marinelli says the luxury tax has caused a major shortage of workers in the industry.
"When people heard that the luxury tax was coming in, they thought our market was going to be affected by that," he said. "A lot of people left."
While sales are down this year, Marinelli hopes potential boat buyers won't let the luxury tax keep them off the water for long.
"People realize you have to live and you only have one chance to do the things you want to," he said. "Think of the memories you're going to create on the boat. It's very powerful."
Buying a boat, even amid the luxury tax, is financing a portion of one's life to have fun, Marinelli says, adding it's especially worth it if they live near the Trent-Severn Waterway.
"People come from around the world to Orillia and spend the time," he said. "There are so many places along the Trent that are great stops."
Orillia harbour master Allan Lafontaine admits boating traffic at the port is down this year, but it's been picking up this month.
"I think boaters just decided to hold off this year," he said. "I think the economy is part of the issue for boating for this year."
The Port of Orillia has had plenty of visitors from the United States this year. Without them, Lafontaine fears the port "would be in trouble."
"I've got one boater here who is going to leave next week, and he's been here a month," he said. "They really do love it here."
This weekend's Orillia Waterfront Festival has brought about 60 vendors, live music, and family entertainment to the Port of Orillia. Lafontaine says the event aims to create some much-needed positive momentum for the boating industry.
"It's all just about celebrating our beautiful waterfront," he said. "Everybody's looking forward to the cardboard boat race tomorrow at noon."
While events are free to attend at the port this weekend, Experience Nissan is collecting food donations for The Sharing Place Food Centre.
More information about the festival can be found here.
