Banff’s tourism industry is looking to do a study in 2017 to get a handle on what the economic losses are for the region, and beyond, in association with critical labour shortages during busy summer months.
A recent economic impact study in B.C. concluded the cost of labour shortages to B.C.’s tourism industry from lost spending was estimated at between $918 million and $1.03 billion in 2013-14.
Banff Lake Louise Hospitality Association officials say the group would like to do a similar study, adding they have similar concerns they would like to substantiate about foregone economic opportunity in the tourism industry.
They say direct tourism spending losses that operators and businesses are experiencing due to labour shortages have direct and indirect effects on Alberta’s economy, also noting labour shortages affect revenue taxation for provincial and federal government.
“I would also suggest that BLLHA has an interest in conducting similar research in 2017 to help quantify what the economic losses associated with labour shortages are for our resort destination,” said Darren Reeder, BLLHA’s executive director.
“There are economic costs to not being able to staff up to the levels we need. We know the size of our economic footprint within the tourism economy, there are dollars we are leaving on the table and we know there are downstream effects.”
Banff and Lake Louise again experienced a chronic labour shortage this past summer, particularly in the accommodation and food and beverage sector jobs, such as hotel room cleaners, servers, line cooks and kitchen helpers.
Over the course of the summer, the deficit for those positions was anywhere from 217 to more than 328 a month, with human resources departments barely able to keep up with staff turnover.
Labour shortages lead to staff burnout, but also lost revenue, missed business opportunities, increased business costs, reduced hours of operation, and reduced customer service.
“It does affect visitor experience,” Reeder said.
BLLHA continues to work on many initiatives to recruit Canadians for tourism jobs in Banff and Lake Louise, but is pushing the federal government for changes to the temporary foreign worker program.
Reeder said there are simply not enough Canadians that want to work in the local tourism industry.
