Good morning.

Thank you, Mr. Chair and the committee, for this opportunity to speak to you today on behalf of Canada's tourism sector.

The Tourism Industry Association of Canada proudly represents more than 240 tourism businesses, both big and small, that operate in each region and every riding across the country.

Last year, tourism spending in Canada reached over $113 billion, and our sector accounted for 1.6% of Canada's GDP. Travel and tourism generate not only significant economic impacts for the Canadian economy, but also promote cultural exchange and foster community pride.

The sector supports approximately two million jobs each year. In recent years, permanent workers account for nearly 70% of the workforce, while 12% are seasonal or temporary and 6% are casual. Of the five tourism industry groups, the recreation and entertainment industry has the highest percentage of seasonal workers at 24%, followed by accommodation at 15% and food and beverage services at 7%.

For many workers in the tourism sector, employment insurance is a lifeline during the off-season or in times when employment is uncertain.

The cyclical nature of many tourism ventures means that employment insurance can be a stabilizing factor for workers. When tourism is in full swing, the industry hires a wide array of seasonal roles. Think of ski instructors in winter or tour guides in summer. When peak seasons end, EI becomes essential for many of these workers. EI allows individuals to bridge the gap between seasonal employment, providing financial stability and helping to keep local economies afloat.

Canada's tourism sector is particularly vulnerable to external factors such as economic downturns, global events and natural disasters. Travel restrictions and public health measures imposed during the COVID-19 pandemic resulted in nearly 800,000 workers leaving our labour force.

Additionally, severe weather disruptions have impacted a wide number of Canadian destinations and tourism operators in the past years. For tourism-driven communities that have been impacted by wildfires, EI has proven to be an essential measure for workers who would otherwise be displaced without a safety net.

A robust employment insurance program can contribute to a more resilient tourism workforce. EI ensures that employers have access to workers year-round, and it bolsters the sector's ability to attract and retain specialized talent. This is especially heightened in our remote and rural tourism hubs, where the local community depends heavily on the visitor economy.

Equally, when workers feel secure, they are more likely to invest in training and skills development. This leads to a more capable and adaptable workforce, ultimately enhancing the visitor experience. Well-trained employees can elevate the quality of service, leading to repeat visitors and positive word of mouth, which is vital for long-term success in tourism.

Some may argue that EI benefits discourage workers from seeking employment during shoulder seasons. However, federal initiatives like the tourism growth program are already helping to boost tourism activity beyond the peak season, enabling operators to scale up and expand their workforce.

Like the goals of the tourism growth program, the EI system needs to be designed in a way that encourages active job seeking while still providing necessary support for seasonal operators and employment. Offering incentives for those who take on temporary positions during low-demand periods could strike the right balance.

It's crucial for the committee to address the needs of tourism sector employees during this prolonged economic recovery. A recent report from Restaurants Canada highlights that small business owners are facing an affordability crisis, with rising costs, increased EI premiums and ongoing bankruptcies. To ease these financial pressures, the federal government must urgently reduce the EI premium rate from 1.66% back to 1.58%. This would provide relief for small businesses and their employees, many of whom are young workers and newcomers in accommodation and food services, who rely on this income to support their education.

In closing, I would stress that effective economic policy empowers both our tourism sector and the workers who make it thrive. Strengthening EI in relation to seasonal employment can enhance the resilience of the tourism workforce, allowing Canada to maintain its status as a top travel destination while ensuring that workers are supported in times of need.

Thank you very much, and I appreciate the opportunity to speak with you today.