Banff businesses are bracing themselves for a significant Alberta-wide labour shortage in the coming years.
A recent study by the Canadian Tourism Human Resource Council (CTHRC) predicts a labour shortage will continue to progressively worsen and could amount to a shortage of 228,000 jobs across the country by 2030, with the food and beverage industry being hardest hit.
Officials in Banff are talking about ways to attract and keep workers here, including a focus on promoting services and lifestyle, particularly given fierce competition for labour in places like Fort McMurray, where wages are much higher.
Connie MacDonald, chief executive officer for Banff YWCA, said given the CTHRC’s labour shortage predictions, affordable housing and transportation options are key factors in attracting employees.
“As a community we need to adopt affordability strategies that will support attraction and retention of employees who are willing to work in entry level positions,” she said in a letter to council. “Affordable housing and transportation options are key factors in attracting employees.”
The Y currently houses 120 permanent residents, with a waiting list of approximately 40 to 50 people. The residents typically stay anywhere from six months to five years and work in local businesses.
MacDonald said long gone are the days when thousands of young workers from Eastern Canada showed up every spring and fall to work a season.
She said the labour force is aging, there is less interest in service work and there are more foreign workers on temporary permits.
“At the same time, competition for labour has increased, primarily from the oil and gas industry,” she said.
“If workers in junior positions can’t find affordable places to live and social supports, then they will not come to Banff and we will lose our competitive edge that we continue to fight so hard to maintain.”
The CTHRC study indicates Alberta is expected to generate the highest potential rate of growth in labour demand, followed by Ontario, Manitoba, and Saskatchewan. Between 2010 and 2030, the demand for tourism workers in Alberta could rise from nearly 164,000 full-year jobs to 239,000 full-year jobs, a potential increase of 46 per cent.
The study indicates low fertility rates, longer life spans and the aging of the baby-boom generation will limit labour force growth. In addition, declining birth rates will curb growth in the number of young people entering the labour force; a critical source of labour for the tourism sector. Although higher immigration will offset these trends to a degree, the study indicates this will not be enough to prevent future labour shortages.
The CTHRC study said tourism sector jobs could be made substantially more attractive if more employers offered training, the opportunity for advancement and more than two weeks vacation.
Unless the industry works together to make collective changes that address labour shortages, the study states it is likely that tourism operators will need to compete aggressively by increasing wages to attract workers.
However, the study states this is an ineffective strategy as a sole means of dealing with the labour gap.
“While higher wages would result in boosting the available supply of workers, the higher wages would also trigger price increases that would reduce both the demand for tourism goods and services and the corresponding demand for workers,” it states.
Wages vary in Banff, but generally speaking, staff in most retail stores can expect between $10 and $14 an hour, front desk clerks and housekeepers can expect between $10 and $13 per hour, and restaurant servers and bartenders can see $9 to $14 per hour.
This does not take into account tips and subsidized accommodation packages offered by many employers. At ski hills, wages generally start at $9.50 per hour and positions come with perks like discounted meals, ski passes or lower costs for transport to ski areas.
Banff Lake Louise Hotel Motel Association recently hosted a workshop to discuss what is, and is not, working in terms of trying to attract and retain labour in Banff and Lake Louise. The workshop involved representatives from the Town of Banff, Parks Canada, ski, food and beverage, retail, accommodations sector, tour operators and social support agencies.
Darren Reeder, executive director of Banff Lake Louise Hotel Motel Association, said the idea of national park living and lifestyle is one of the cards to play in the midst of a labour shortage.
“The one thing that continues to resonate is this idea of working in a national park as a right of passage … we think we can do a better job of presenting that, and reminding people that this is a great place to live and come experience,” he said.
“We are a unique market, Canadian parks were created for Canadians, and for people with an eye to working in the hospitality industry, this is a wonderful place to come and to get experience as young Canadians.”
During the labour workshop, Reeder said the availability and affordability of housing was identified as one of the top reasons why the community struggles to meet current and future labour demands.
He said the annual rental vacancy rate is 1.2 per cent, well short of the three to five per cent considered the average for a healthy rental market, and noted there needs to be a sufficient rental pool so that people are willing to live here.
“We can tell them all the wonderful things that exist here, but one of the substantive pieces is do kids have reasonable prospects of making a living or is the cost of living too high, and what are their housing options?” he said.
“We need to provide a platform to set them up for success – and that starts with living conditions and an ability to get around town and things that make it affordable for them to live here.”
Reeder said there needs to be a broad community discussion on tackling the labour shortage, involving elected officials and businesses, including hoteliers, retailers, restaurateurs and tour operators, for example.
“We need to be on this as a matter of urgent priority and turn the tide,” said Reeder.
Banff Mayor Karen Sorensen said Banff has long suffered a seasonal labour shortage, where workers come for the summer after university and leave by the end of the summer to head back to school.
“We have always had a fall crunch, but this talk is about a year-round crunch,” she said. “The entire province is dealing with a labour shortage and I don’t think Banff is any different.”
Sorensen said programs such as the temporary foreign workers program, are crucial for Banff. Banff has been a big draw for the Filipino community.
“Programs like the temporary foreign worker program are crucial to the success of our destination,” she said. “That is really what’s keeping us with a number of employees in our community.”
Sorensen said the Town of Banff has a role to play with programming, services and infrastructure, including good housing.
“Everyone is talking about once we get them here, how do we keep them here? I think that’s the answer for us,” she said.
“With money being the motivator in other destinations in the north – we will never be able to match that – so how do we make sure that when people come here they understand what they are coming for? We have to really promote lifestyle.”
