Business

With border restrictions easing, will Canadians start shopping in Whatcom again?

Many Whatcom County businesses are eagerly awaiting the return of Canadians and cross-border shopping, but basic logistics at the border could determine how many will come down from British Columbia.

With the U.S. government announcing it will begin allowing in vaccinated visitors from Canada and Mexico for nonessential travel in early November, Whatcom residents can now wonder what the return of cross-border travel and shopping will look like around here. Will it be challenging to find a parking spot at Costco or Trader Joe’s during the holiday shopping season? Will residents be stuck in line at gas stations?

The consensus early on seems to be... maybe.

One big unknown is whether Canadian consumers are willing to deal with the new border rules and come down to Whatcom County for a shopping trip, said Guy Occhiogrosso, president/CEO of the Bellingham Regional Chamber of Commerce. As it stands right now, coming into the U.S. won’t be too tough logistically for Canadians; they just need to make sure they have their vaccination card along with the other typical documents like a passport.

However, shoppers going back into Canada will still need to show proof of a negative COVID-19 test. Will it be worth it for a Canadian shopper to coordinate the 72-hour negative test results with a trip to Bellingham to get Joe-Joe’s cookies from Trader Joe’s?

With two sets of requirements for leaving and returning to Canada, Occhiogrosso expects the return of cross-border shopping to be gradual. However, even a gradual return of Canadians might mean some adjustments for Whatcom residents, who haven’t seen nonessential Canadian travelers for 19 months.

With such a large population center just north of Whatcom County, even a low percentage of shoppers making the trip could make a big difference in this area, particularly during the holiday shopping season, Occhiogrosso said.

One factor when it comes to cross border shopping is the Canadian dollar’s strength compared to the U.S. dollar. Currently the loonie is around 80 cents compared to the U.S. dollar, which is around neutral when it comes to finding deals in the U.S., factoring in components such as taxes on products. If the global economy continues to improve in the coming weeks, oil demand may rise, which would further strengthen the Canadian dollar, according to an article on the Yahoo!Finance website.

Another factor could be the shopping habits of the Canadian consumer. Now that they’ve gone this long without shopping in Whatcom County, will they get back into the cross-border shopping routine?

Laurie Trautman of Western Washington University’s Border Policy Research Institute said she expects there to be some pent-up demand at the border early on, but agrees that the negative test coming back into Canada may keep some at home.

In border communities, such as Blaine, residents are excited to see Canadians, as many of them are family or friends they haven’t seen since the pandemic began, said Sheila Wood, executive director at the Blaine Chamber of Commerce.

Wood expects some Canadians will be eager to come visit Blaine, while others will wait. Some Canadians have homes that have been left unattended for 19 months, while 25 mail package stores in the community are waiting for Canadian customers to come pick up products. Visiting family and friends will be a huge priority, though.

Good timing for Southwest

One business particularly happy with the border reopening is Southwest Airlines, which will begin offering flights out of the Bellingham International Airport on Sunday, Nov. 7 to Oakland and Las Vegas. The Canadian market is expected to be a factor in Southwest’s success in the Bellingham market, and November is typically a busy time for Canadians looking to travel to warmer climates.

“We’re obviously pleased with any development that removes impediments to movement and allows people to safely reunite with intended places, missed people and to forge meaningful moments ahead,” said Brad Hawkins, a spokesman for the airline.

How this will impact other businesses, particularly in the tourism/hospitality industry, will be on a case-by-case basis, Occhiogrosso said. Some businesses are still making pandemic-related adjustments heading into the winter months, a time when people tend to dine and shop indoors. Other businesses may be looking to add staff, but are having trouble finding qualified workers.

Dana Weber, general manager at the Best Western Plus near the Bellingham airport, said they are very excited for the border to finally reopen and they are fully staffed and ready to go.

Weber said they are planning a marketing campaign focused on the lower mainland of British Columbia, but he believes it’ll be a gradual return as well.

Even with plenty more pivoting by businesses expected in the coming weeks, the easing of some border restrictions is a big step as the area attempts to get closer to what the new normal is during the pandemic, Occhiogrosso said.

This story was originally published October 13, 2021 at 12:56 PM.

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Dave Gallagher
The Bellingham Herald
Dave Gallagher has covered the Whatcom County business community since 1998. Retail, real estate, jobs and port redevelopment are among the topics he covers.
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