SUNDRE – Partially subsidized incentive programs could play a role in reducing the supply shortage of affordable housing in all manner of municipalities, but especially smaller communities, says Sundre's mayor.
Richard Warnock was among three panellists who recently participated in a webinar hosted by the Federation of Canadian Municipalities in collaboration with Destination Canada about tourism and how boosting the visitor economy can also create opportunities to enrich communities. Click here to see the roughly one-hour discussion.
The other two panellists who joined the Dec. 12 webinar, which was led by Gracen Chungath, senior vice-president of Destination Development at Destination Canada, were Al Raine and Robert Rochon, the mayors of Sun Peaks, B.C., a resort community, and Fundy, N.B., a newly amalgamated municipality, respectively.
In a preamble prior to the panel discussion, Chungath spoke about the importance of ensuring that visitor opportunities are developed with a community-centric approach in mind.
With tourism representing a roughly $45.2 billion contribution to Canada’s GDP based on 2019 figures that are now close to recovering to those pre-pandemic levels, the industry has paved the way for 232,000 tourism-related business throughout the country, meaning about one in 10 jobs are connected to the sector, she said.
“Compared to other prominent sectors within the Canadian economy, tourism is estimated to be about the second largest of the contributions to GDP, and that is just right behind oil and gas, but ahead of forestry, fishing, agriculture and telecom,” she said.
However, the sector isn’t exactly known for providing its workers with a lucrative living.
So, plans to further grow tourism must not only include more than just “entry-level jobs” that can open doors to actual career paths, but also ensure an adequate supply of homes they can afford, Chungath said.
That has been an issue for the B.C. resort community of Sun Peaks, which Raine described as essentially exclusively “purpose-built” for tourism without any other core industries.
In 1995, the value of assessed properties there was roughly $25 million. But today, it’s around $1.4 billion, he said, adding the population in that same span of time went to 1,500 from 100.
On the one hand, Raine said their community fully appreciates tourism and not only the jobs the sector creates, but the amenities that come along with it as well.
“We have facilities and lifestyles you wouldn’t otherwise find in small, rural communities,” he said.
Rochon also spoke of the challenges faced by huge seasonal surges of visitors that create a huge strain on infrastructure for residents. The mayor of Fundy also said two big hurdles are workforce attraction and especially providing adequate housing for those workers.
Further complicating matters, Raine added, is the fact that real estate and even the cost of living in resort communities and municipalities that lean heavily on tourism is expensive beyond the reach of the average worker serving the sector.
Locals, he said, end up largely priced out of the market and there should be strategies to ensure there are non-market options for residents as well as employee housing for seasonal operations.
“That’s a major issue; no question. I look at the average home price in Sun Peaks today, is probably closer to $2 million; it’s out of reach for any working employee in Sun Peaks,” he said.
“So, non-market housing; housing where only the employees and residents of the community can buy in and sell out of, is critical,” he explained, adding that’s of course easier said than done.
“But to provide those non-market housing and employee housing units, there has to be some subsidy added somewhere,” he said.
Warnock agreed with his mayoral counterparts that housing shortages makes securing a workforce to further develop tourism an uphill battle.
In a follow-up phone interview with the Albertan on Wednesday, Jan. 3, Warnock offered his thoughts on subsidy programs that would incentivize affordable housing developments so not only residents but also tourism sector employees could actually find a reasonably priced place to live.
“It’s definitely going to be a challenge,” he said about addressing the supply shortage of affordable housing.
Recognizing Sundre has more housing diversity than a resort community like Sun Peaks, Warnock expressed a preference for mixed housing options with less of a focus on high-end developments that cater to the super rich.
“I’m hoping that in our development of year-round tourism, is we don’t need million-dollar homes. And that’s just my personal opinion, because no one’s going to be able to afford to buy them,” he said.
But affordable housing options should also include plans for rental properties, he said.
“Because a lot of people – whether it’s even in tourism – they may want to come and try out Sundre area, but they don’t want to come and buy a home and then find out a year later it wasn’t for them,” he said.
“A lot of people want to come and rent and get a feel for it, see how secure the jobs are and then purchase and become a permanent resident in the community,” he said. “So, when you say supported, sustainable, subsidized, I don’t see any other way.”
Without a subsidy of some kind, developers who are motivated primarily by maximizing profits are far less likely to pursue affordable housing projects that will assuredly produce much lower returns on investment when there’s so much more to be made catering to the wealthy.
So, the big question remains “how do you draw that developer to create that?” said Warnock, suggesting that mixed housing might be an appealing option.
“I just don’t see 100 per cent subsidized working either, but I think I like the word mixed housing,” he said.
“All of us – especially small towns – how are we going to get people without some kind of program? I think it’s going to have to come to the forefront in municipalities, including Sundre.”
Asked if he’d gleaned additional insight or new perspectives from participating in the panel discussion, Warnock said he took to heart cautionary tales of growing too big, too fast.
“We want to build slowly so it’s sustainable,” he said. “I think I learned, in listening to the conversation, is ... make it slow and progressive.”
But for any tourism plan to work, “there has to be a drawing card,” he said.
“Sundre’s got an advantage: we have the West Country. And that’s why I think Destination Canada, Tourism Alberta are taking a serious look at alternatives to the major centres such as Canmore, Banff, Jasper, that type of thing. Do we want to be part of it? Absolutely.”
However, Sundre’s mayor recognizes some residents harbour reservations.
“To be honest, I think some of our residents are concerned when we start talking about year-round tourism,” he said. “I’ve had a couple that have said, ‘We want Sundre to stay as Sundre.’ But that’s usually not the common response.”
Yet while most of the people he’s spoken with are generally welcoming to the idea of growing tourism, he said, “I don’t think anybody wants Sundre to be the next Canmore … but the public (does) want activities, year-round tourism in a more rural setting.”
So, tourism is just one part of the town’s diverse economy that the municipality simply wants to enhance to complement other core sectors, he said.
And Warnock also agreed with a point raised by Chungath, who emphasized the importance of community involvement in order to maximize any tourism development plan’s chances of success.
“The best way to get somebody on your side is have them be part of it,” said Warnock.
