Voice of Business: Comprehensive Strategy Needed For the Tourism Sector
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The tourism industry in Ontario needs a comprehensive strategy that addresses workforce development, regulatory burdens, infrastructure deficits and regional disparities.
That’s the push from the Ontario Chamber of Commerce (OCC) and the Tourism Industry Association of Ontario in their The State of the Ontario Tourism Industry Report released Dec. 13.
In November we addressed the executive summary that was released earlier, but the completed report takes a deep dive into the issues holding back the tourism sector and drives home the need for the government to create a thorough strategy for it.
Tourism is a vital sector in the provincial economy and is critical for economic recovery.
While domestic and inbound tourism improved in the second half of 2022, the industry is not expected to fully recover from the pandemic until 2025. With rising concerns over a looming recession, cost of living and spending habits, the sector requires a path forward that addresses the ongoing impacts of COVID-19 border closures, capacity restrictions and structural issues.
The report highlights some bleak findings, including that four in 10 tourism operators forecast profitability in 2024 and beyond, and that tourism businesses have accumulated soaring debt to remain financially viable during the pandemic.
While nature-based tourism is having more success compared to its urban counterpart, the rural aspect of it creates more issues with accessing labour. Many tourism employers are in beautiful wilderness areas where nearby housing options are largely waterfront and custom homes, both of which are a bit too pricey for many service sector workers. Attracting people from more suburban locations requires access to a car, which creates barriers in terms of travel time and expenses. With so many service sector businesses hiring closer to where the majority of people live, rural tourism employers need to attract workers who have a passion for the industry and working in the Kawarthas.
Access to a workforce with the skills, experience, and availability needed is one of the biggest challenges holding the tourism business back right now. Suggestions in the report include:
Re-conceptualizing how people view tourism careers
Optimizing work placement opportunities for post-secondary students
Reforming immigration to retain international students and reliably attract international workers that meet the needs of the industry
Consistently promoting job-ready skills in the high school curriculum
Ensuring that decision-making is data-driven and specific to each locality and region
