COVID-19 Tourism Workforcetourismhr.ca/wp-content/uploads/Tourism_HR_Canada_COVID... · 2020-08-05 · Results show that only a fraction of the tourism businesses are operating at

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COVID-19 Tourism Workforce Impact ReportP R E L I M I N A R Y F I N D I N G S

Tourism has been severely limited since COVID-19 closed international borders. Statistics Canada’s tracking

of travel to and from Canada showed that international travel came to a standstill by the end of March, with

trips to Canada by travellers from abroad down 54.2% from February. International travel remained low in

May, the latest month for which complete data is available, as arrivals from the United States were down

96.6% from May 2019 and arrivals from other countries were down 97.9%.1 Leading indicators of cross border

travel and air arrivals for June indicate that little change in these trends should be expected this summer.

Devastating ImpactUS Arrivals

down

96.6%

Arrivals Other Countries

down

97.9%

The impact on the tourism sector has been massive. The food services industry saw the value of sales

decline from $6.3 billion in February to $2.3 billion in March before rebounding to $3.1 billion in May.2 On

average, the restaurant industry gets about 20% of its demand from tourists. The industry has the capacity

to rebound with increasing demand from locals, but physical distancing requirements will limit demand due

to reduced number of customers.

6.3

2.3

3.1

$ billionSales Decline

FEB MAR APR MAY

Workforce COVID Impact Survey │06-07 2020│Tourism HR Canada 1. Statistics Canada, Travel between Canada and other Countries, May 2020

2. Statistics Canada, Food services and drinking places, May 2020

This data shows the demand drivers on just some industries within the tourism sector.

Recreation facilities and museums are struggling to reopen. Some have chosen not to as it

is a better financial choice to avoid the cost of opening when demand is so low. However,

businesses with fixed costs related to rent and maintenance cannot as easily balance their

operating costs.

Industries that rely more on travellers face significant challenges. Weekly hotel

occupancy data shows that occupancy dropped below 15% in April and had only

recovered to 35.4% as of July 25.3

Between June 10 and July 12, Tourism HR Canada fielded the COVID-19 Tourism Workforce Impact Survey

and collected 605 responses from tourism operators across Canada. Responses were received from all

provinces and the territories as well as 28 responses from national businesses that were providing

information for locations across the country.

The survey was designed to measure the effect of COVID-19 on operational status and staffing needs, as well as the ability to access

government supports such as the Canadian Emergency Wage Subsidy (CEWS) and the Regional Relief and Recovery Fund.

Hotel Occupancy Rate

Workforce COVID Impact Survey │06-07 2020│Tourism HR Canada

15%35.4%

APRIL JULY

June 10 to July 12

605

3. STR, STR: Canada hotel results for week ending 25 July, https://str.com/press-release/str-canada-hotel-results-week-ending-25-july

Despite the many people out of work, some businesses are still concerned they will be challenged to

find workers this summer, and they also face challenges adapting to the new protocols and

regulations they must follow.

Most businesses are finding ways to adapt, however, and many are utilizing—or plan to utilize—available

support programs such as the Canadian Emergency Wage Subsidy. Over half of respondents had applied

for coverage with almost all being approved. A smaller number of respondents utilized the Regional

Relief and Recovery Fund due to a lack of awareness of the program or because they had already been

able to access the Canadian Emergency Business Account.

Results show that only a fraction of the tourism businesses are operating at full capacity. Many

remain closed and many intend to remain closed this summer. Those that have reopened or

expanded operations since the strictest COVID-19 containment measures have been lifted are

hiring back former staff, but employment is expected to remain well below the levels seen in 2019.


CLOSED

CEWSRRRFCEBA

Summer Outlook


6.2%

60%

30.5%

fully open

operating with limitations

temporarily closed

22respondents

permanently closed

their business


n = 191

Don’t know

No%

32.5

Yes

22.5

thisOpening

summer

45

?

Employment Levels


54.6%

71.8%

rehired staff

said at least 75% of the hires were returning staff


n = 500

%

YesNo

45.454.6

75 – 100%

50 – 74%

25 – 49%

0 – 24%

Did not answer

rehired

staff

% of hiresthat were

71.8

10.3

11.44.4

2.2

former staff

Hired or

in response to lifting of restrictions on

business operations Share of respondents

% that were former staff

laid off due to COVID-19


MAY AUGUST

2019

2020

44%58%

Of the businesses that were open…

% of workers compared to same time last year

May Employment Levels


2020 levels as a percent of 2019(of the respondents who were open or planned to open for the summer)

40.7 19.1 19.1 6.2 11.2 3.7Less than 25 25 – 49 50 – 74 75 – 99 100 More than

100

August Employment Levels


2020 levels as a percent of 2019(of the respondents who were open or planned to open for the summer)

12.9 26.1 32.1 10.1 12.8 4.9Less than 25 25 – 49 50 – 74 75 – 99 100 More than

100


17%Businessesexpecting

the same levelor more workers

in August 2020compared toAugust 2019


n = 500

concerned they will beunable

%

Yes

No

58.2

41.8

employeesthis summer

Employers

to hire enough

Workers choose CERB over return to work

CEWS ends too early

Recruitment difficulties associated with seasonality

Difficulty finding qualified, reliable employees

Wage expectations of potential employees too high

Workers fear contracting COVID-19 on the job

Lack of resources for attracting employees

Young people uninterested/unaware of jobs in sector


61.7%

37.4%

35.0%

34.5%

31.1%

30.6%

30.1%

27.7%

Which of the following do you believe will be a barrier to finding enough workers for your business this summer?

Shortage of skilled labour in local area

High competition for staff within the same industry

Inability to access wage subsidy programs

Shortage of unskilled labour in local area

High competition for staff from other sectors

Applicants lack necessary skills/experience for the job

Restrictions on bringing TFWs to Canada

Reduced immigration to Canada


Which of the following do you believe will be a barrier to finding enough workers for your business this summer?

25.2%

21.8%

20.9%

19.9%

16.0%

12.1%

10.7%

8.7%

Employers are facing many

employee challenges due to COVID-19:

compensation, morale, job security,

turnover, workloads…


Adaptation to new protocols

Inability to offer compensation increases

Inability to offer competitive compensation

Managing employee morale

Easing employee concerns about job security

Excessive workloads for staff

High staff turnover/inability to retain staff

Increased absenteeism

Attracting qualified job candidates


67.5%

50.3%

38.2%

38%

35.3%

32.7%

26.8%

21.0%

Business Challenges

20.6%

Abuse of sick leave

Reinstating reduced or eliminated benefits

Inability to offer flexible work arrangements

Rebuilding trust among employees

Funding human resource initiatives

Adapting to new technologies

Succession planning

Providing professional development/advancement

Lack of career progress for staff


18.5%

17.9%

16.2%

16.0%

15.3%

14.2%

12.6%

11.5%

Business Challenges

10.5%

Despite concerns that adapting to

new protocols or regulations will be challenging,

employers are confident

about what needs to be done.



n = 605

%Strongly agree

Agree

Neither agree nor disagree

Disagree

Strongly disagree

45.86.9

5

3.1

39.2

I have a goodunderstanding of the

COVID-19 relatedprotocols & regulations

to put in place


n = 605

%Strongly Agree

Agree


Disagree

Strongly disagree

regulations

46.5

13.7

3.8

32.1

3.8

I am confidentthat I will be able

to properlyimplement these new

protocols &


n = 603

%Strongly Agree

Agree


Disagree

Strongly disagree

42.5

18.2

4.1

2.5

32.7

I am confidentthat the protocols &

regulationsI am implementing

will make customersfeel safe

Over half of the survey

respondents applied for the

Canadian Emergency Wage Subsidy Program.


Were not aware of program

Applied

Have not applied

56.5

%

42.0

AppliedCEWSfor

Workforce COVID Impact Survey │06-07 2020│Tourism HR Canada n = 605

1.5

Approved Not Approved Approval Pending

50

100

150

200

250

300

Outcome of the Canadian Emergency Wage Subsidy Applications

285

2.9%

10 60


83.1%

17.5%

Over half of respondents that applied for

CEWS used the subsidy for at least 75% of their staff.

44% used the subsidy for all their staff.


No hours

Reduced hours

Samehours

43.8

%

43.4

12.8 hours?

For employeescovered by CEWS:


n = 605

same, fewer, or noworking

Percent of Employees Subsidized by CEWS


by Gross Annual Revenue

Less than$1 million

$1 to $4.9 million

$5 to $24.9 million

$25 million or more

Total

75 – 100% 44.0 61.7 59.0 50.0 56.6

50 – 74% 22.0 15.0 90.0 0.0 13.4

25 – 49% 12.0 12.1 11.5 0.0 11.1

0 – 24% 22.0 11.2 20.5 50.0 19.0

%

75 - 100 %


Prefer not to answer

$25 million or more

$5 million to $24.9 million

$1 million to $4.9 million

$500,000 to $1 million

Less than $500,000

50 - 74 % 25 - 40 % 0 - 24 %

Staff Subsidized by CEWS

20 40 60 80 100

Employers used the wage subsidy

for a large range of occupations.


Examples of Occupations Subsidized by Canadian Emergency Wage Subsidy

by Industry


Transportation Accommodation Food & Beverage Recreation & Entertainment Travel Services

Transportation managers

Accommodation service managers

CooksFacility operation and

maintenance mgrsRetail trade managers

Bus drivers, transit operators

Room attendants, light duty cleaners

Restaurant, catering managers

Caretakers Travel counsellors

Technicians and mechanics

Front desk agentsFood counter

attendantsRetail salespeople Supervisors

Airline sales and service agents

Executive chefsF&B service supervisors

Landscaping and grounds people

Outdoor adventure guides

Taxi and limousine drivers

Food & beverage servers

Bakers Security guards Tour guides

Only 19% of respondents applied for the

Regional Relief and Recovery Fund,

and 40% were not aware of the program.



n = 605

Applied

Have not applied

Was not aware of this program

% 18.7

Applied

42.1

39.2

for RegionalRelief &

Recovery Fund

Approved

Approvalpending

Not approved

46%

46%

8%

About This Survey


The COVID-19 Tourism Workforce Impact Survey was open to tourism businesses from June 10 to July 12, 2020, and collected 605 valid

responses from across Canada. Responses were received from all provinces and the territories, in addition to 28 responses from national

businesses that were providing information for locations across the country.

Responses were received from all five industry groups that make up the tourism sector. The majority of responses came from the

Accommodation industry (45.5%), followed by Recreation and Entertainment (22.1%), Food and Beverage Services (15.9%), Travel

Services (13.9%), and Transportation (1.5%).

Businesses covered a range of geographic locations, including tourism businesses located in rural areas, villages, towns, and medium to

large cities. Over 30 businesses had locations in different types of urban and rural settings. Most respondents were from non-franchise

owner-operated businesses, with an additional 13.7% from franchises that were owner operated.

Over three-quarters of businesses were open year-round. Almost all were open in summer, with a majority open for at least part of the

spring and fall. Only 12.4% reported they were open for the winter. Most businesses were small businesses earning under $1 million in

gross annual revenue. Nearly 60% were in operation for more than 20 years; only 13% were operating fewer than 5 years.

North

Western Canada

Ontario

Quebec

Atlantic Canada

1.2 %

36.8 %

16 %

32.4 %

9.1 %

by region

n = 605


Response rate

Transportation

Accommodation

Food and Beverage Services

Recreation and Entertainment

Travel Services

Other

50 100 150 200 250 300


9

275

96

134

84

7

Please select the industry that best describes your business

Subsidiary/division

Owner-operator (franchise)

Owner-operator (non-franchise)

Parent organization

Not-for-profit/volunteer-run

Government

Other

10%


81

346

39

55

11

40

Management Structure

20% 30% 40% 50% 60%

20

Transportation

Accommodation

Food and Beverage Services

Recreation and Entertainment

Travel Services

Other

50 100 150 200 250 300

Workforce COVID Impact Survey │06/07 2020│Tourism HR Canada

9

275

96

134

84

7

Please select the industry that best describes your business

Rural Area Small Population1000-29,999

Medium Population

30,000-99,999

5

10

15

20

25

30

Business Locations

134


35

%

Large Urban

100,000+

Multiple Business Locations,

Various Regions

n = 591

167

13.5%

80

174

36

29.4%

22.7%

28.3%

6.1%


n = 603

openBusiness

year-round?

No

Yes

75.8

24.2

%


n = 145

AutumnSummer WinterSpring

64.1

69.0

93.1

12.4

seasonsyou are

Indicate

open


n = 596

% Less than 1 year

1 – 3 years

3 – 5 years

6 – 9 years

10 – 19 years

20+ years

Years ofoperation

57.7 19.6

10.1

6.24.9

1.5


n = 596

%

32.2

10.6

25.7

16.4

4.9

10.2

Under $500,000

$500,000 – 1 million

$1 million – 4.9 million

$5 million – 24.9 million

$25 million +

Don’t know/prefer not to answer

Gross

revenueannual


COVID-19 Tourism Workforcetourismhr.ca/wp-content/uploads/Tourism_HR_Canada_COVID... · 2020-08-05 · Results show that only a fraction of the tourism businesses are operating at

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