If you are mapping out a dream summer getaway to the Canadian Rockies right now, you need to know about a massive roadblock. A severe lack of affordable housing and tighter federal immigration rules are creating a massive labor drought across the region. The crisis is hitting Banff and Canmore the hardest. Local hospitality and retail employers are desperate. Some businesses need to hire upwards of 35 staff members before June 1 just to keep their doors open for the busy summer season.
Rent is out of control. Domestic workers cannot afford to relocate. Federal shifts are making things worse. Tighter regulations on temporary foreign workers and sluggish visa processing times cut off an international demographic. This group used to make up nearly half of the local hospitality workforce prior to the pandemic.
The Town of Canmore is fighting back with a highly polarizing move. They are launching a Livability Tax this year. It adds a 0.4 percent levy on second homes occupied for fewer than 183 days a year. The municipality wants to use the estimated $10.3 million in annual revenue to help fund 2,000 new non-market homes. Property owners are furious. Over 1,000 of them are currently challenging the tax in the Alberta Court of Appeal.
Nature already devastated the local housing supply. The catastrophic 2024 Jasper wildfires destroyed a massive portion of workforce accommodations, making an affordable living in the region completely out of reach for many. Now, the Tourism Industry Association of Alberta says the province has to attract and house 100,000 additional tourism employees by 2035 to meet long-term economic targets.
The provincial tourism sector contributed over $15 billion to the economy last year. But businesses are struggling to operate at full capacity due to these interwoven staffing and housing constraints, according to a detailed report released on Saturday. Visitors should expect longer lines and reduced hours this summer.