Madam Chair and members of the committee, I'd like to thank you for having invited me today.
My name is Beth Potter, and I'm the president and CEO of the Tourism Industry Association of Canada.
I acknowledge that we are gathered here today on the unceded, unsurrendered territory of the Anishinabe Algonquin nation.
TIAC is the national advocate for tourism in Canada. On behalf of thousands of tourism businesses, we promote policies, programs and other initiatives that foster the sector's growth.
Tourism matters. It enables socio-economic development, job creation and poverty reduction. This drives prosperity and provides unique opportunities to women, minorities and young people. The benefits spread far beyond direct GDP impact and employment. The indirect gains extend through the entire travel ecosystem and supply chains to other sectors.
Tourism businesses incurred significant debt to get through the pandemic. Despite some improvement over the summer period, they continue to struggle financially. They face barriers to attracting investment. Disruptions in supply chains, inflation at a 40-year high and rising interest rates are now also impacting their businesses.
The shortage of labour in virtually all tourism sectors has long been identified as a substantial barrier to industry growth. While the dearth in supply of workers predates the pandemic, COVID vastly compounded the problem. Today our businesses have considerably bigger challenges attracting and retaining the necessary workforce to fully run their operations.
In our recent submission to Minister Boissonnault for a new federal tourism growth strategy, we outlined four key priority pillars to help tourism recover from COVID and achieve its full potential.
Among those pillars was the need to develop a comprehensive strategy specifically to attract and retain a sustainable tourism workforce. We identified labour as a key priority because the recovery and growth of tourism largely hinges on addressing the significant labour shortages that exist. The most recent estimates suggest that the sector has some 230,000 vacant positions. To meet growth forecasts as travel resumes, we will need to employ more than 900,000 more people in the next eight years.
Among our recommendations was the need to launch targeted recruitment campaigns and a specific indigenous workforce strategy. We also recommended increasing the number of high school programs, modernizing post-secondary programs and launching comprehensive national tourism job-ready programs, as well as investing in skills development.
As measures that we believe could be actioned in the short term, we recommended prioritizing tourism and creating efficiencies with the temporary foreign worker program, adjusting policies within existing federal and provincial immigration streams to increase the number of workers assigned to tourism and increasing opportunities for international students. Longer term, we recommended working towards creating a dedicated tourism and hospitality immigration stream with a pathway to permanent residency, as well as for governments to invest in affordable housing in close proximity to major destinations.
With that background, I now turn my focus specifically to the topic of the committee's study: application backlogs and processing times for all immigration streams at Immigration, Refugees and Citizenship Canada. To do this, I share the following: While I understand the fundamentals on how and why such a massive backlog could accumulate and why there are now significant processing delays, I cannot help but voice my disappointment.
IRCC provides regular updates on its website. A couple of days ago, it noted 2.6 million as the total number of applications in all of its inventories. Of those, 1.1 million were considered within service standards, so 1.5 million applications are considered in backlog. I am particularly concerned about the impact this situation is having on our tourism sector and on our drive to build forward from the pandemic.
As the sector that was the first hit and the hardest hit, we fought hard just to survive through COVID. As I have already said, we continue to struggle financially. Just when things seem to have been improving over the summer and have begun normalizing somewhat after more than two years of hardship, it is deeply discouraging, on top of it all, to now have to contend with these issues related to immigration and processing delays.
I have heard from many of our members, businesses across the country, about their difficulty getting their temporary foreign worker applications approved and permits issued. I have also heard of many cases in which foreign business travellers could not get their visas in time to attend important business events here in Canada.
This all hinders the tourism sector's ability to reach its full potential and compounds the reputational damage our sector has already suffered because of lockdowns, restrictions or other border vaccine and masking requirements over the last 30 months.
It is critically important to our sector that we not only deal with these backlogs quickly—