Banff, Lake Louise businesses say TFW program changes will lead to closures

The Heartbeat of Banff and Lake Louise: A Community Linked by Tourism

Banff and Lake Louise, nestled in the stunning Canadian Rockies, are renowned for their breathtaking landscapes and vibrant tourist attractions. Each year, thousands of visitors flock to these destinations to enjoy the natural beauty, stay in cozy hotels, and explore local shops and restaurants. The backbone of this thriving tourism industry is a diverse workforce, comprising both Canadian locals and temporary foreign workers from countries like Australia, Asia, and South America. These individuals work tirelessly behind the scenes to ensure visitors have memorable experiences. However, recent changes to Canada’s Temporary Foreign Workers (TFW) program have cast a shadow over this harmony, leaving the community bracing for labor shortages and uncertainty.

Changes to the Temporary Foreign Workers Program: A New Era for Employment

The federal government’s adjustments to the TFW program have introduced stricter rules, capping the number of foreign workers employers can hire at 10% of their workforce—a significant drop from previous levels. Additionally, the duration of work permits has been reduced from two years to one, creating a sense of instability for both employers and employees. Karlie Fleury of the Banff & Lake Louise Hospitality Association warns that these changes could lead to chronic labor shortages, particularly in sectors that have historically struggled to find staff. For employers like Doncath Holdings, which operates nine gift shops in Banff and relies on foreign workers for 30% of its workforce, the new rules present a daunting challenge.

The Ripple Effect: How New Rules Are Impacting Businesses and Workers

The impact of these changes is being felt across the tourism sector, with businesses scrambling to adjust to the reduced workforce. Doncath Holdings’ general manager, Rebecca Lipes, emphasized the difficulty of finding full-time, committed employees within Canada to fill the gaps. The company is set to lose seven full-time workers over the next nine months—individuals who have been trained and dedicated to their roles for years. Lipes expressed concern that without a solution, the company may not be able to sustain its operations across all nine stores. This sentiment is echoed by other employers, who fear the changes could lead to a decline in the vibrancy and economy of the town.

A Pathway Lost: The Human Cost of Policy Changes

The emotional toll of these changes is profound, particularly for temporary foreign workers who have made Banff and Lake Louise their home. Natalia Rosas, a worker from Chile, shared her story of dedication and disappointment. After years of hard work to earn enough hours to apply for permanent residency, her hopes were dashed when the rules changed abruptly. With her visa set to expire next January, Rosas expressed her heartbreak and the emotional strain felt by her and her colleagues. “We don’t want to leave, but we don’t have any option,” she said, her voice trembling. The tight-knit community has become like a family to these workers, making their potential exit deeply felt.

Wider Implications: Balancing Economic and Social Concerns

The changes to the TFW program were sparked by broader concerns, including Housing shortages, rising living costs, and criticism that Canadian jobs were being overlooked in favor of temporary workers. Prime Minister Justin Trudeau initiated the changes amid pressure to address these issues, but the move has drawn criticism from employers and workers alike. Data from Immigration, Refugees and Citizenship Canada shows a significant increase in temporary foreign worker permits in recent years, from 98,025 in 2019 to 183,820 in 2023—an 88% jump. While the government aims to balance economic needs with social challenges, the new rules have left many feeling the consequences.

The Future of Banff and Lake Louise: A Call for Change

As the tourism industry in Banff and Lake Louise grapples with the aftermath of these changes, there is a growing hope that further adjustments or exceptions to the program could alleviate some of the pressure. Without intervention, the loss of skilled and dedicated workers could have long-term consequences for the local economy and community spirit. Jessica Dostie, a family owner of Doncath Holdings, emphasized the emotional weight of the situation, describing the workers as “like family.” For now, the fate of these workers and the future of Banff’s tourism industry hang in the balance, as the community waits to see if their voices will be heard.