President of Strategies North Grant Barley met with several Valemount business owners on November 27th. The meeting, along with surveys and other conversations, informed the firm’s recovery strategy for local businesses, he said. /Abigail PoppleBy Abigail Popple, Local Journalism Initiative Reporter, RMGThe knock-on effects of the Jasper wildfire have dug a $1.5M hole for Valemount businesses, says consulting agency Strategies North. The Village hired the agency in November to evaluate the economic impacts of the three-week closures of Highway 93 and Highway 16 following the evacuation of Jasper. Soon after, Strategies North consultants held a meeting in Valemount to talk with local business owners about their concerns and potential solutions. These conversations – along with 11 one-on-one conversations with business owners, a survey distributed by the Village in August, and a second survey made by Strategies North in December – culminated in the agency’s Economic Recovery Strategy, presented to Council on January 14th.The report recommends promoting tourism in Valemount to wider audiences – and pitching Valemount as an alternate location to would-be Jasper visitors – to strengthen the village’s tourism sector. Additionally, consultants recommended working with the provinces of B.C. and Alberta, as well as the federal government, to create a funding stream that would allow businesses to apply for grants to cover their losses from the highway closures.Average losses over $35KThe initial business impacts survey circulated by the Village from August 13th through the 19th found that the 64 respondents saw an average loss of $35,000 and a median loss of $15,000 due to the highway closures, according to the Strategies North report. The second business impacts survey, developed by Strategies North and distributed from December 6th through the 16th, found higher numbers: an average loss of $46,520 and a median loss of $35,000. However, this survey had 16 respondents – one quarter of the amount that responded to the initial survey – which made the average more sensitive to outliers, such as one business that reported a $250,000 loss, according to the report. The numbers may also be higher because the August survey circulated while both highways were still closed, so businesses have incurred more losses since then, the report says.Consultants also estimated the total revenue lost from a reduction in tourism. In summer 2023, Valemount saw 8,494 tourists, according to statistics the firm obtained from Destination BC – in summer 2024, that number fell to 5,738. Based on estimates of how much money is spent per visit – somewhere from $380 to $700, according to Destination BC and Tourism Valemount – that puts the revenue loss from the lack of tourists at $1,041,768 to $1,929,200, the report says.Loss of revenue isn’t the only factor hurting Valemount businesses. Half of the respondents to the December survey said they incurred additional expenses during and immediately after the highway closures. Those with the highest additional expenses attributed the costs to support they provided to Jasper evacuees, according to Strategies North.“When the evacuation order was given, Jasper and Alberta directed people to British Columbia,” the report reads. “The fact that the businesses and organizations in Valemount opened their doors at their own expense should not disproportionately burden them for their generosity.”Besides additional expenses, businesses also suffered from cancellations and delays in shipping or receiving items. This could create further problems for businesses that may now be seen as unreliable due to shipping delays, and clients may have found new suppliers during the highway closures, according to the report.These losses resulted in several layoffs, the report says. According to the survey, business owners reduced hours for 33 positions total, and five positions were laid off entirely.To recover from these losses, respondents suggested an average of $33,340 in funding assistance. Respondents suggested increased tourism marketing efforts and a low-interest loan as other potential solutions. Threat of a downward spiralThe village’s biggest threat is a spiralling economic decline, the report says. “In a small town, losing one business means potentially losing the ability to buy a good or service within the community,” the report reads. “This can mean less money being spent in the community … potentially creating a cycle that challenges recovery and eliminates job opportunities.”This vicious cycle would be difficult to end, according to the report. Residents who lose their jobs may move away, investors may be reluctant to support businesses, and the community will have difficulty attracting tourists and new residents, it says.However, an early recovery from the highway closures could prevent this worst-case scenario, the agency believes. It suggests promoting the community to a broader audience: in the past, the village has relied on neighbouring communities for most of its visitors, but promoting Valemount to would-be Jasper visitors internationally and in other parts of Canada may expand the village’s tourism market. In an email to The Goat, president of Strategies North Grant Barley said he believes $1.5M, along with enhanced marketing, could provide sufficient funding for recovery. When asked how the firm calculated the figure, Barley said consultants engaged with businesses and community groups to assess losses and determine what businesses’ financial needs were. The firm also examined recovery support provided to communities in similar situations, according to Barley, though he did not specify which communities these were.Next stepsFinancial support will likely have to come from the B.C., Alberta and federal governments, according to Strategies North. “As a municipality, Valemount cannot provide direct support such as grants, loans, or tax breaks to businesses,” the report reads.Instead, it recommends working first with the B.C. government to procure funding for a grant program geared towards businesses suffering from the financial impacts of the Jasper wildfire.As of writing on January 20th, the B.C. Office of the Registrar of Lobbyists did not have any recorded lobbying activity on behalf of the Village of Valemount. However, Strategies North registered with the federal lobbyist registry on January 14th. According to the registry, the firm has not filed any communication reports with the federal government so far.Consultants will also discuss the report and their next plans with Valemount Council, Barley said. He declined to comment on the agency’s plans to work with provincial and federal levels of government.“The people and businesses of Valemount deserve immense praise for their generous response to the Jasper fire,” Barley wrote. “Our aim is to ensure that their support does not result in an unfair burden on the community.”Related Posts: