One way to address labour shortages in the tourism industry
One of the biggest barriers to the growth of the tourism industry is the lack of a workforce. In many places, it is getting harder and harder to find workers for 4-5 months of the year at relatively lower wages. In some places, businesses are not opening at all or curtailing open hours due to a lack of workers. New opportunities cannot be pursued.
I believe there are multiple ways to address this but one is to encourage more entrepreneurship.
My wife and I are staying in a charming little hotel in a picturesque town in southern England for a couple of days. The hotel is owned by a young couple and they ‘work’ the business. He is the cook, manager, accountant, etc. and she is the front desk clerk, breakfast server and jack-of-all-trades. The hotel is beautiful and they are driving a $90K vehicle but at the same time doing a lot of ‘menial’ work.
Owning and working the business could be a good solution. Imagine a group of people owning a hotel room cleaning business and offering to clean rooms in multiple hotels in a small community. Essentially the idea is to look at all of the labour components of the industry and see if there is potential for a entrepreneur-based solution. We already see this in the transportation side of the business (owner-operator) but I think it could apply to many activities.
New Brunswick has the second lowest rate of self-employment in the two main tourism -related industry groups NAICS 71 Arts, Entertainment and Recreation and 72 Accommodation and Food Services. The difference between the highest provinces for tourism-related self-employment have over 50% more self-employed than does New Brunswick. Quebec has 55% more self-employed than New Brunswick (14.4% over 9.3%). I know taking a percentage of a percentage is confusing but I want to make the point here.
To put this into perspective, if NB had Quebec’s self-employment rate there would be 1,400 more business owners in these two sectors.
What should governments and tourism-industry groups do? They should encourage more entrepreneurship in tourism. They should put on startup events that evaluate various ideas to drive business-ownership in tourism. They should add an entrepreneurship course to tourism-related programming at the CCNB/NBCC.
In the end the tourism industry’s growth will be constrained by a lack of workers. Entrepreneurship could be one way to address labour needs in the years ahead.
I believe part of the problem with tourism in NB and the Maritimes is people believe or maybe have to run it seasonally. Most Inns and other businesses close down during winter. My understanding they do this for 2 reasons. One they need a break from having to do all the work themselves and what's the point in staying open when all the other businesses are closed. PEI and, to a certain degree NS has been experimenting with year round tourism. Which is ideal.
Most of northern Ontario cottage country does not close it's doors just because it's winter. I believe you have to pivot. Find full time trusted employees to help run the business year round. Find ways to attract tourism to your area with winter activities. It is an investment, but it can be done.
I once looked for a live cam view of the tides in the Bay of Fundy Park during the winter. The camera was off! Can you imagine a teacher is Manitoba wanting to show her class the rising tides and the camera is off. There is a live cam on almost all animals in the Toronto Zoo, but not the world highest tide.
It's a shift in mindset that needs to change.