CALGARY — A recent survey reveals that more than half of Jasper, Alta.’s businesses are on the brink of closure, with 53 per cent indicating they can’t survive more than two months without immediate support in the aftermath of the wildfires.
The survey, conducted by the Tourism Industry Association of Alberta (TIAA), Tourism Jasper, the Alberta Hotel and Lodging Association (AHLA) and the Association for Mountain Park Protection & Enjoyment (AMPPE), highlights an urgent need for both provincial and federal governments to address the challenges faced by the community in re-starting their economy.
The wildfires have caused substantial damage, destroying approximately 30 per cent of Jasper, Alta. structures and burning around 36,000 hectares. While the wildfires resulted in extensive damage to the townsite and areas of Jasper National Park, 70 per cent of structures remain standing but are broadly unassessed.
Jasper, Alta.’s visitor economy is a significant tourism contributor
- Visitors spent a record $12.7 billion in Alberta’s visitor economy during 2023 (19-per-cent increase over 2022);
- International travellers are back with 2023 exceeding pre-pandemic international receipts by 600 million reaching $2.9 billion;
- Jasper, Alta. accounts for approximately 22 to 25 per cent of tourism expenditures in the Canadian Rockies;
- 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.
Summer season anchors Jasper, Alta.’s economy
- Daily cumulative revenue losses in Jasper, Alta. and Jasper National Park are estimated to be as high as $4.5 million per day during the peak summer months;
- Seventy-five per cent of businesses make more than 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 established.
Jasper, Alta. businesses face quickly mounting losses
- Eighty-six businesses were surveyed, representing an estimated 38 per cent of the local business community;
- Thirty-seven per cent reported that their properties were either completely or partially lost, and 26 per cent were uncertain about the extent of damage to the businesses (at this time);
- Among the respondents who provided a specific time frame estimate to re-open, 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 can’t last beyond two months;
- Based on current information, 66 per cent of respondents don’t expect to return to previous seasonal revenue levels for at least seven months or longer;
- They survey reveals an urgent need for housing and staff accommodation support, highlighting the government’s need to focus on the recovery process’s human and business elements;
- Since the evacuation, 68 per cent of businesses have continued to provide uninsured wages, benefits and living expenses to their staff;
- Twenty-six per cent of respondents have had staff permanently leave their organization due to the wildfires;
- Fifty-one per cent of surveyed businesses will immediately require in-destination staff accommodation to resume and sustain operations.
“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. 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,” says Tracy Douglas-Blowers, president & CEO, AHLA.
