Jasper tourism businesses face re‑entry, labour, and housing challenges

The survey, conducted by the Tourism Industry Association of Alberta (TIAA) in conjunction with Tourism Jasper, the Alberta Hotel and Lodging Association (AHLA), and the Association for Mountain Parks Protection & Enjoyment (AMPPE), highlights an urgent need for both provincial and federal governments to address the challenges faced by the community in restarting their economy.

Protecting the safety of Jasper’s residents, the park’s suitability for public use, and the broader community must remain a top priority as recovery efforts progress. The wildfire has caused substantial damage, destroying approximately 30 per cent of Jasper's structures, (358 out of 1,113 buildings), and burning around 36,000 hectares. While the wildfires resulted in extensive damage to the townsite and areas of Jasper National Park, it is important to note that 70 per cent of structures remain standing but are broadly unassessed.

Jasper’s visitor-based economy primarily services overnight visitors to the community, with most day trips focused on the South of the Park at the Columbia Icefields. A viable, operating, accommodation sector is foundational to restarting Jasper’s tourism-based economy.

Jasper’s visitor economy is a significant tourism contributor 

• Visitors spent a record $12.7 billion in Alberta’s visitor economy during 2023 (19 per cent increase over 2022).
• International travellers are back. 2023 exceeded pre-pandemic international receipts by 600 million reaching $2.9 billion.
• Jasper accounts for approximately 22-25 per cent of tourism expenditures in the Canadian Rockies (Banff, Lake Louise, Jasper, Canmore.)
• In 2019, the Municipality of Jasper and Jasper National Park contributed $523 million in tourism spending. This spending generated an estimated $450 million in GDP, supported 5,100 jobs, and produced $69 million in taxes.
• Under non-pandemic circumstances, Jasper would have seen spending increase to $564 million in 2021, resulting in a total economic impact of $482 million in GDP, 5,640 jobs, and $74 million in taxes. The spending impact in Jasper was on track to be much higher in 2024, accounting for the 6 per cent province-wide growth that occurred in 2022, and, an additional 19 per cent growth in 2023.

Summer season anchors Jasper’s economy 

• Daily cumulative revenue losses in Jasper and Jasper National Park are estimated to be as high as $4.5 million per day during the peak summer months.
• Summer months are crucial for Jasper, with 75 per cent of businesses making over 60 per cent of their annual revenue during this period.
• With the summer season now on hold, 81 per cent of tourism businesses expect lower revenues for 2024, risking major business liquidity issues until summer revenues are re-established.

Jasper businesses face quickly mounting losses 

• A total of 86 businesses were surveyed, representing an estimated 38 per cent of the local business community.
• Of those, 37 per cent reported that their properties were either completely or partially lost, and 26 per cent were uncertain about the extent of damage to their businesses (at this time).
• Having even a temporary path to resumption of visitor activity (best-case and worst-case scenarios) would be beneficial for businesses that are experiencing significant and ongoing revenue losses and are seeking guidance on how to best support the community, their staff, and, their business interests.
• Among the respondents who provided a specific timeframe estimate to reopen, almost 50 per cent of businesses could start up in less than 4 weeks.
• Only 12 per cent of businesses believe they can remain financially viable, without incurring debt, for longer than six months, while 53 per cent of respondents said they cannot last beyond two months.
• Additionally, based on current information, 66 per cent of respondents do not expect to return to previous seasonal revenue levels for at least seven months or longer.
• Many businesses face impending debt impacts and significant staffing challenges.
• The survey reveals an urgent need for housing and staff accommodation support, highlighting the government's need to focus on the recovery process's human and business elements.
• Nearly half of the respondents indicated they would require assistance with staff accommodation to resume operations.
• Since the evacuation, 68 per cent of businesses have continued to provide uninsured wages, benefits, and living expenses to their staff.
• It has been reported that 26 per cent of respondents have had staff permanently leave their organization due to the wildfire. As a remote rural community, Jasper faces an increasing challenge retaining their existing labour force, particularly given structural staff shortages that pre-dated the wildfire.
• Finally, 51 per cent of surveyed businesses will immediately require in-destination staff accommodation to resume and sustain operations.

Recovery will require a coordinated effort from government and operators 

Jasper’s tourism-based economy and its distance from a large labour market, like Edmonton, make recovery challenging. Operators have flagged that without a quick resumption of economic activity or significant temporary wage supports many employees will not return to the community.

Operators depend on summer revenues to carry their operations through the slower time of the year. On average Jasper businesses generate up to 10x, or more, revenue during a typical summer day compared to lower yielding days the other eight months of the year, making these irrecoverable losses particularly impactful and placing many operators at risk of liquidity challenges with each passing week.

To support the recovery process, tourism businesses are eagerly awaiting details from all levels of government on what a streamlined, timebound, development approvals process might look like along with insights on what short, medium and long-term employee wage and business support programs might be available until visitors return. Potential solutions that would also assist businesses in managing ongoing costs could include payment deferrals on items such as lease payments, WCB premiums, utility payments, corporate taxes, etc.

“The AHLA and our members are grateful for the work being done by fire crews, utility workers, and critical services to make it safe for Jasper residents to come home, and for hotels and other tourism operators to get back to business. Jasper is a critical part of Alberta’s visitor economy, and the AHLA appreciates the strong collaboration and support that Parks Canada and all levels of government have expressed to ensure a swift and complete recovery,” says Tracy Douglas-Blowers, president and CEO, Alberta Hotel and Lodging Association (AHLA).