Windsor’s duty free sales dip amid border tensions, owners say industry needs support

Windsor’s duty free sales dip amid border tensions and owners say the industry needs support.CTV Windsor’s Travis Fortnum explains.

As the flow of cross-border traffic slows, the ripple effects are being felt on Windsor’s doorstep — and well beyond.

At Tunnel Duty Free in Windsor, owner Abe Taqtaq says sales are down about 20 percent on average.

He believes travelers are either spending less overall or avoiding potential headaches at the border amid tariff tensions.

But what’s most frustrating, Taqtaq says, is that businesses like his don’t qualify for any of federal trade supports announced by Ottawa — because duty free stores aren’t technically classified as export businesses.

With revenue shrinking and no safety net in place, Taqtaq and other operators say the industry is in need of urgent attention.

Cam Bissonette, who runs the Osoyoos Duty Free Store in British Columbia, says his shop is hanging on by a thread.

“I’ve had to have the conversation with my two children… about how it doesn’t look like there’s going to be much business here for you in the future,” Bissonette told reporters at a Border Mayors Alliance news conference Friday.

He says he’s been dipping into personal savings just to keep the lights on.

“I had one day, last week, where I had a -$67 day at my store because someone came in to do a refund.

“That’s how dire it is,” he said.

According to a recent survey within the Frontier Duty Free Association (FDFA), 25 to 30 per cent of store owners are unsure if they’ll still be in business six months from now.

Unlike other industries that can pivot or sell products elsewhere, Bissonette says duty free stores are uniquely constrained.

“Every single product that leaves my front door has to go into the United States,” he said.

Here in Windsor, the impact of declining sales extends beyond store walls.

Mayor Drew Dilkens says the city owns the land where Tunnel Duty Free operates — and receives a dividend from store revenue.

“Every year we receive about $1 million to $1.5 million in dividends... that we don’t have to collect from property taxes,” Dilkens told CTV News.

“It’s a differentiator for communities like ours that are border cities,” he added.

“It speaks to the overall importance of making sure we get this trade relationship right.”

Bissonette and the FDFA are calling on Ottawa for targeted, short-term financial support — similar to the subsidies offered during the COVID-19 pandemic.

They say it doesn’t have to be a large amount — just enough to help businesses stay solvent, pay their bills, and keep staff employed while border traffic recovers.

“How much longer can I pay my staff?” he asked.

“I have really good people that work for me.”