Local boating companies are feeling the impact of the luxury tax on vessels this year.

In August 2022, the federal government imposed a tax on yachts, cruisers, sailboats, deck boats, water ski boats and houseboats priced over $250,000.

Jason Crate, owner of Crate’s Lake Country Boats, says the tax has “devastated” the retail boating industry.

“Tons of jobs have been lost,” he said. “People just stopped buying boats over $250,000.”

The luxury tax is 20 percent for any boat over $250,000 or 10 percent of the total, whichever is less.

“It has completely ruined the boating industry in Canada,” Crate said. “Every boat is expensive, and the vast majority of boats sold are over $250,000.”

He says his company cannot avoid the luxury tax.

“We just watch our customers go to the U.S., buy boats and leave them there,” he said.

The only boating 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 shore was full of boats up to 50 or 60 feet long. That’s over, and that’s the case all over the country.”

He says the value of a boater’s contribution to the local economy is “greatly underestimated” by most government officials.

“When someone buys a boat, whether it’s 22 or 52 feet, they travel, buy fuel and rent slips,” he said. “We hire people to clean and maintain these boats. They come to the Port of Orillia, eat and shop locally.”

The number of boats on the water has dropped “significantly” in recent years, says Crate, who encourages anyone concerned about the impact of the luxury tax to contact their local MPs.

“We need representatives across the country, regardless of party, who have common sense and simply say this is not working,” he said.

“The whole story of punishing the rich may sound good as a soundbite in the media, but from an economic point of view it was a colossal failure.”

Pride Marine product specialist Kevin Marinelli says the luxury tax has created a major labor shortage in the industry.

“When people heard the luxury tax was coming, they thought our market would be affected,” he said. “A lot of people left.”

Even though sales are down this year, Marinelli hopes that the luxury tax will not keep potential boat buyers away from the water for long.

“People realize that you have to live and you only have one chance to do the things you want to do,” he said. “Think of the memories you’ll create on the boat. That’s very impressive.”

Even taking luxury tax into account, buying a boat is funding a part of your fun life, says Marinelli, adding that it’s especially worthwhile if you live near the Trent-Severn waterway.

“People come from all over the world to spend time in Orillia,” he said. “There are so many places along the Trent that are great places to stop.”

Orillia Harbourmaster Allan Lafontaine acknowledges that boat traffic in the harbour has declined this year but increased this month.

“I think boaters just decided not to go this year,” he said. “I think the economy is part of the problem for boating this year.”

The port of Orillia has had many visitors from the United States this year. Without them, Lafontaine fears, the port would be “in trouble.”

“I have a boater here who is leaving next week and he’s been here for a month,” he said. “They really love it here.”

This weekend’s Orillia Waterfront Festival brought about 60 vendors, live music and family entertainment to Orillia Harbour. Lafontaine says the event aims to provide much-needed positive momentum to the boating industry.

“It’s all about celebrating our beautiful waterfront,” he said. “Everyone is looking forward to the cardboard boat race tomorrow at noon.”

While entry to the harborside events this weekend is free, Experience Nissan is collecting food donations for The Sharing Place Food Centre.

Further information about the festival can be found here.