The soaring price of helium has slowed business for Ilana Doitch, owner of Ilana’s Balloons and the Funnery Playpark in Newmarket, Ont., north of Toronto.Sammy Kogan/The Globe and Mail
A helium shortage is deflating for Ilana Doitch, owner of Ilana’s Balloons and the Funnery indoor playground in Newmarket, Ont.
Ms. Doitch’s helium suppliers have increased their prices since the war in Iran began, she said, and it’s been months since she purchased a helium tank to pump balloons for children’s birthday parties.
“It drives me crazy that something happening on the other side of the world is affecting us,” she said. “All you can do is wait for the economy to pick back up.”
In the wake of the Iranian forces’ attack on Qatar’s LNG facilities and instability at the vital Strait of Hormuz, the war in Iran has cut off 30 to 38 per cent of the world’s helium supply out of Qatar. Russia, which accounts for 8 per cent of global helium production, also implemented controls that require special permission from government officials for helium exports outside of the Eurasian Economic Union until the end of 2027.
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The shortage is a burst in the bubble for some Canadian balloon businesses relying on helium to stay afloat. While some have found solutions, the transition hasn’t been easy for others.
Ms. Doitch estimates her customers have dropped off by at least 70 per cent since the war began.
“Kids are coming to my place saying, ‘Mom, I want a balloon,’ and I have to tell them it costs four dollars,” she said, adding that customers will often reconsider after she gives them a quote. “It hurts me that people can’t celebrate the way they want to.”
Ms. Doitch demonstrates the use of a helium tank on Sunday.Sammy Kogan/The Globe and Mail
This is the fifth global helium shortage in two decades, according to Richard Dunn, executive director of the Helium Developers Association of Canada. During shortages, helium prices increase and essential use of the gas for medical MRI systems and semiconductors are prioritized.
“Helium distribution companies have been putting users on notice of potential restrictions in supply,” he said. “A number of balloon providers are saying they can’t afford it.”
Isaac Dib, owner of Vancouver Balloons, has felt the impact of a global helium shortage before. Expecting an escalation in international conflicts, he stocked up on helium at the beginning of the year. Mr. Dib said he has a couple months’ worth of supply left.
“It was a feeling that something was on the way that wasn’t going to be good,” Mr. Dib said of his decision to stock up. Since the start of the war, all of his corporate event orders were cancelled, which he suspects is because people are hesitant to celebrate during the war. “People get scared. You can say it’s a helium shortage, but there’s also a lot of fear for the general person to deal with.”
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But the helium shortage is not entirely depleting for some balloon stores.
Regina-based Balloon Bar YQR stopped selling helium products when its supplier could no longer fulfill its orders around the end of March. Since then, its online sales have decreased by 70 per cent, according to co-founder Tanna Dietrich.
“It was very quick and we didn’t have much notice,” she said.
To cope with this helium shortage, Balloon Bar YQR transitioned to rely solely on air-filled products. The business is sharing photos of its new, more durable balloon designs, so clients can see what’s possible with air. For now, the business will not return to “a finite resource” such as helium, Ms. Dietrich said, adding that they would only consider using the gas again if it became affordable.
“We had a few options: Either we fold and call it a day, or this is an opportunity for us,” she said. “We’re proud of the decisions we made and the work we put in.”
Visitors to Ms. Doitch's indoor playground are increasingly purchasing cheaper party packages that don't include balloons.Sammy Kogan/The Globe and Mail
Iranian officials briefly opened the Strait of Hormuz on Friday before closing it once again on Saturday amid a U.S. attack on an Iranian tanker. But even if the Strait reopens permanently, the effects on helium supply will not be felt immediately, according to Opher Baron, an operations management professor at the University of Toronto.
“Even if things start to flow as before the conflict, it may still be a month or two until you get from there to a balloon shop in Ontario,” he said.
The end of the shortage is dependent on world events, Mr. Dunn said. “As long as the Strait of Hormuz is closed, it becomes a growing problem.”
Meanwhile, many of Ms. Doitch’s clients are opting for cheaper birthday party packages at the Funnery without balloons.
“I love to make my birthday party rooms more beautiful, and when the kid walks in, I want the kid to say, ‘Wow, I can’t believe this is my room,’” she said of the Funnery’s party areas. “Now, I can’t do that any more.”