Border restrictions continue to hit Whatcom economy, particularly in this city
Whatcom County retailers are being impacted by the U.S.-Canada border restrictions, but a policy report indicates that Blaine is really feeling the brunt of it.
The Border Policy Research Institute at Western Washington University released an updated report about how much money Canadians spend in Whatcom County. The report estimates Canadians spent $140 million in this area in 2018, which represents 11.5% of Whatcom’’s taxable retail sales.
The report estimates that Blaine received about $24.6 million from Canadian shoppers, which is more than Lynden, Sumas, Birch Bay and Ferndale combined. Bellingham received $107.8 million from Canadian shoppers, but is more than 16 times bigger than Blaine from a population standpoint.
That kind of financial loss for a small community such as Blaine could warrant some additional disaster relief, said Laurie Trautman, director at the border institute.
“I don’t know what that would look like, and I think the argument for that will be stronger as there is more data that shows they are facing a more prolonged economic impact than other areas of the state and county,” Trautman said in an email.
The border has been restricted to only essential travelers and commercial trade since March 21 because of the coronavirus pandemic. The restrictions are currently scheduled to expire on Tuesday, July 21, but several local experts believe some of the restrictions will be extended through the summer.
One key takeaway from the institute’s report is that even after restrictions are eased at the border, this will have a long-term impact on Canadian shopping behavior in Whatcom County. That shopping behavior changed after the Sept. 11 terrorist attacks. Those attacks restricted border travel for a few days, but it took years before shopping habits returned to a more traditional pattern, according to the report.
“It is possible that the border restrictions will remain in place long enough for Canadians to adjust their shopping habits and consumer behavior to re-orient away from cross-border shopping,” the report stated. “Even after the restrictions are lifted, concerns about public health and safety could continue to inhibit Canadians from shopping in the U.S.”
The report also looked at the most common places Canadians visited in Whatcom County in 2016 and 2019. Ross Dress For Less had the highest percentage of Canadian car license plates during the times surveyed, followed by Silver Reef Casino Resort, Walmart, Costco and downtown Blaine.
This story was originally published June 29, 2020 at 5:00 AM.
