JASPER – More than half of Jasper’s businesses say they cannot survive more than two months without immediate government assistance in the aftermath of the wildfire that destroyed more than one-third of the national park community.
Tourism officials say a survey of 86 Jasper businesses – representing an estimated 38 per cent of the local business community – highlights an urgent need for both provincial and federal governments to address the challenges faced in restarting their economy, including housing and staff accommodation support.
To support recovery, businesses are calling on all levels of government for a streamlined and timely development approvals process and short-, medium- and long-term employee wage and business support programs until visitors return.
They say 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, and corporate taxes among others.
“We know that when we do get a chance to reopen, it won’t be the same environment,” said Stavros Korogonas, owner of Jasper Pizza Place, who lost his home in the July 24 blaze – two days after everyone was forced to flee under an evacuation order – while his business is still standing but damaged.
“I’ve never been more stressed since COVID-19, because I just finished paying off my COVID loans this year.”
Brett Ireland, CEO of Jasper Brewing Co. and Maligne Distilling who was born and raised in Jasper, said both his businesses are still standing, but he is still waiting to see the extent of smoke and water damage at both places.
Like other businesses, Ireland has flagged that without a quick resumption of economic activity or significant temporary wage supports, many employees will unlikely return to the national park community.
“I’ll definitely be back up and running, but it will probably take a number of months, not weeks, and the biggest challenge for us right now comes down to the people side,” Ireland said, noting the business employs about 100 staff.
“They’re obviously displaced and the best estimates we have probably are about half of them have lost their accommodations. That’s the biggest challenge because there’s no way we can reopen without all of our team.”
Summer season anchors Jasper’s economy
The business survey of Jasper business owners was conducted by the Tourism Industry Association of Alberta (TIAA), Tourism Jasper, the Alberta Hotel and Lodging Association (AHLA), and the Association for Mountain Parks Protection & Enjoyment (AMPPE), shows the importance of summer tourism.
- 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 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.
Tourism officials say operators depend on summer revenues to carry their operations through the slower time of the year.
On average, Jasper businesses generate up to 10 times, or more, revenue during a typical summer day compared to the other eight months of the year, which officials say makes these irrecoverable losses particularly tough and puts many operators at risk of liquidity challenges with each passing week.
Ireland said the results of the business survey were “pretty jarring” but wants to remain hopeful that some of those findings are due to the “cloud of uncertainty that everybody has right now.”
“Summertime is when you make hay; a part of that is what just gets you through the winter,” he said.
“Having this happen right at the absolute peak season, it exacerbates that.”
Other survey results include:
- 37 per cent of surveyed businesses indicated 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.
- Among the respondents who provided a specific timeframe estimate to reopen, almost 50 per cent of businesses could start up in less than four 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.
- Nearly half of the respondents indicated they would require assistance with staff accommodation to resume operations.
- Since the evacuation on July 22, 68 per cent of businesses have continued to provide uninsured wages, benefits, and living expenses to their staff.
- 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 staff shortages that pre-dated the wildfire.
- 51 per cent of surveyed businesses will immediately require in-destination staff accommodation to resume and sustain operations.
Korogonas said he is not sure how his business would survive a winter because the busy summer months – when up to two million visitors descend on the national park community – are what get most businesses financially through the rest of the year.
“You make all your margin in the summer and you continue to employ people and have expenses through the winter and you do it all again the next summer – and that's the roller-coaster that is Jasper businesses,” Korogonas said.
In the busier summer, Jasper Pizza Place has up to 70 staff but it’s closer to 45 year-round.
“I need to make sure that my employees have a place to live, and I need to make sure that we can cover our costs,” Korogonas said.
“Without any government support, I’m probably going to have to go get another substantial loan from a lender that’s gonna take me five to seven years to repay it.”
Jasper’s visitor-based economy primarily services overnight visitors to the community, with most day trips focused on the southern part of Jasper National Park at the Columbia Icefields.
Tracy Douglas-Blowers, president and CEO of the Alberta Hotel and Lodging Association, said a viable, operating accommodation sector is central to restarting Jasper’s tourism-based economy.
“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,” she said in a news release.
“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.”
Jasper’s visitor economy is a significant tourism contributor
- Visitors spent a record $12.7 billion in Alberta’s visitor economy during 2023 (a 19 per cent increase over 2022).
- International travellers are back, as 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, the tourism industry estimates 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 six per cent province-wide growth that occurred in 2022, and, an additional 19 per cent growth in 2023.
Debbie Harksen, AMPPE’s executive director, said Jasper will come back stronger than ever with the necessary supports.
“AMPPE is encouraged by the coordinated efforts of all levels of government in managing this crisis; they have ensured the safety of people and have defended important assets,” she said.
“This survey highlights next steps and the urgent needs of Jasper’s business community: immediate financial assistance, housing for staff, and the return of visitors to revitalize its economy.”
The wildfire has caused substantial damage, destroying approximately 30 percent of Jasper’s structures – 358 out of 1,113 buildings – and burning around 36,000 hectares.
