Impact of Reduced Working Hours for International Students on Canada's Tourism and Hospitality Workforce

The recent announcement by the Canadian Federal Government to reduce working hours for international students from 40 to 20 hours per week could significantly impact the tourism and hospitality workforce. Here are several potential effects:

1. Labor Shortage: The tourism and hospitality sectors heavily rely on international students to fill part-time and seasonal roles. Reducing their working hours may lead to a shortage of available staff, particularly during peak seasons.

2. Increased Operational Pressure: With fewer working hours available for international students, existing staff may face increased pressure to cover shifts and maintain service levels. This could lead to burnout and decreased job satisfaction

3. Higher Recruitment Costs: Businesses may need to invest more resources into recruiting additional staff to fill the gaps left by international students working fewer hours. This includes advertising, interviewing, and training new hires, which can be time-consuming and costly.

4. Potential Decline in Service Quality: With fewer staff available, maintaining the high standards of service expected in the tourism and hospitality industry could become challenging. This may result in longer wait times, reduced customer satisfaction, and a potential decline in repeat business.

5. Impact on Small Businesses: Smaller tourism and hospitality businesses, which often have tighter budgets and fewer resources, may be disproportionately affected. They might struggle to find and afford the additional staff needed to maintain operations.

6. Financial Strain on International Students: Many international students rely on the ability to work 40 hours per week to support their living expenses and education. Reducing their working hours could create financial difficulties, potentially leading some to seek other employment opportunities outside the tourism and hospitality sectors.

7. Reduced Flexibility for Employers: Employers who previously relied on the flexibility of international students to cover various shifts and busy periods may find it more challenging to manage their staffing needs effectively.

8. Economic Impact: The overall economic impact on the tourism and hospitality sector could be significant. With a reduced workforce, businesses may have to scale back operations, resulting in decreased revenue and potential job losses.

9. Need for Policy Adaptation: The industry might need to advocate for policy adjustments or support programs to mitigate the impact of these changes. This could include lobbying for special allowances for the tourism and hospitality sectors or seeking government assistance to support affected businesses.

Andrew Siegwart, President and CEO of TIAO, expressed deep concern over the recent announcement, emphasizing that it imposes yet another restriction disproportionately affecting the tourism and hospitality industry. He highlighted that sectors such as food and beverage, accommodations, and events, which heavily rely on international students, will likely experience significant labor shortages. Siegwart underscored the policy's potential to exacerbate financial challenges for international students amidst rising living costs, potentially leading to precarious employment conditions that could jeopardize their welfare and immigration status.

In summary, reducing working hours for international students is likely to exacerbate existing labor shortages, increase operational costs, and potentially affect the quality of service in the tourism and hospitality industry. Businesses must adapt and find innovative solutions to manage these challenges effectively.

The official press release from TIAO, https://www.tiaontario.ca/articles/tiao-renews-call-for-federal-government-to-consult-tourism-stakeholders-following-further-workforce-restrictions-impacting-ontarios-tourism-industry