Every year, thousands of tourists flock to the town of Banff and the nearby hamlet of Lake Louise to stay in hotels, take in the scenery, and spend money at local stores and restaurants — all staffed by a mix of Canadians and people from across the globe.
Walk into any building in the tourist towns and you’re as likely to be greeted by a local as you are someone from Australia, Asia or South America.
But now, the Alberta mountain communities are bracing for labor shortages following changes to the federal government’s temporary foreign workers program.
“It looks like not being able to meet demand, if we have chronic labor shortages like we did pre-pandemic, post pandemic — there’s specific positions we’ve always seen labor shortages in and we’ll see it in an even broader scopes across the industry, ” said Karlie Fleury with Banff & Lake Louise Hospitality Association.
Doncath Holdings Ltd. owns and operates nine gift shops in Banff and said 30 per cent of its workforce is made up of foreign workers.
Under the changes, employers are only allowed 10 per cent and workers can only stay for one year instead of two.
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The program is often used as a pathway for employees who wanted to stay longer and attain permanent residency.
Natalia Rosas, from Chile, has been working hard to obtain her hours to apply for PR — but the those hopes have now been dashed.
“All of sudden, things changed abruptly with no exceptions,” Rosas said. Her visa is set to expire next January.
“All this time money, effort causing a real emotional impact on us.”
She said she feels sad for her co-workers.
“We don’t want to leave, but we don’t have any option,” she added with tears in her eyes.
The first wave of changes were made in August, following a scathing UN report citing mistreatment in the program, the housing crisis and decreasing unemployment rates.
Prime Minister Justin Trudeau initiated the changes late last year amid concerns Canadians were being passed over for jobs and amid pressure on the housing market.
The Liberal government faced criticism for increasing the number of temporary residents allowed into Canada, which many have linked to housing shortages and a higher cost of living.
According to public data from Immigration, Refugees and Citizenship Canada, 183,820 temporary foreign worker permits became effective in 2023. That was up from 98,025 in 2019 — an 88 per cent increase.
The change was the latest in a series of moves to tighten eligibility rules in order to limit temporary residents, including international students and foreign workers.
Doncath Holdings said it’s difficult to find full-time, committed employees from within Canada.
“There’s not enough of a pool to draw from to fill all the positions,” said Rebecca Lipes, general manager Doncath Holdings, who has worked for the company for 30 years.
Doncath is losing seven full-time workers in the next nine months — staff members who have been trained and committed for the past two year.
“We contribute a lot to the life and vibrancy of this town.”
“Unless something changes quite quickly, we will not be able to operate nine stores,” Lipes added.
The changes are causing widespread anxiety in the tourist mountain town on multiple levels.
“The people that are here they are not just employees — they are are like family to us,” said Jessica Dostie, family owner of Doncath.
“It is hard because it’s our business it will affect us financially — but emotionally, we’ve made relationships with these people.”
Some are hoping a change in the federal government might change the fate of so many workers wanting to stay can do so.
— With files from The Canadian Press
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Banff, Lake Louise businesses say TFW program changes will lead to closures
