Today · Jun 10, 2026
Canada Lost 30,000 Hotel Workers and They're Not Coming Back

Canada Lost 30,000 Hotel Workers and They're Not Coming Back

The Canadian hotel workforce is still 20% smaller than 2019, but revenue has blown past pre-pandemic levels. Somebody's doing more work for less money, and I'll give you one guess who.

Available Analysis

I worked with a GM in western Canada years ago who told me something I've never forgotten. He said, "Mike, I don't have a staffing problem. I have a math problem. The person I need costs $27 an hour. The job pays $18.50. That's not a shortage. That's a price." He was right then. He's more right now.

Here's the math that should keep every Canadian hotelier up at night. British Columbia's hotel room revenue hit $4.6 billion in 2023... up from $3.2 billion in 2019. That's a 44% revenue increase. Employment in the same sector? Down 25% from 2019 levels. Read that again. You're generating significantly more revenue with a quarter fewer people. If you're an owner or an asset manager, that sounds like a productivity miracle. If you're a housekeeper cleaning 18 rooms instead of 14, it sounds like what it actually is... you're just burning through people faster.

And here's the part that nobody in the C-suite wants to say out loud. These workers didn't disappear. They left. Deliberately. They went to warehouses, to retail, to healthcare support, to literally anywhere that paid more, offered more predictable schedules, and didn't require them to smile while getting yelled at about late checkout. The pandemic gave every hospitality worker in Canada three months to sit at home and realize they had options. A lot of them took those options. Now Ottawa is tightening the Temporary Foreign Worker Program... limiting the low-wage stream to 10% of your workforce, capping contracts at one year. So the pipeline that was keeping a lot of properties staffed just got pinched. The Association hôtellerie du Québec says 91% of their members are struggling to hire for summer. Ninety-one percent. That's not a labor shortage. That's an industry crisis.

I've seen this movie before, by the way. Different country, same script. When U.S. hotels came out of the 2008 recession, ownership groups discovered they could run leaner and pocket the margin. Housekeeping went from daily to on-request. Breakfast went from staffed to grab-and-go. And for about 18 months, it looked genius on the P&L. Then guest satisfaction scores started sliding. Then rates plateaued because you couldn't justify the ADR increase without the service to back it up. Then you were stuck... you'd trained your guests to expect less, trained your remaining staff to do more with less support, and trained your best potential hires to look somewhere else because word gets around. That's exactly where Canadian hospitality is headed if the response to "we can't find workers" continues to be "make the remaining workers do more."

The Hotel Association of Canada says the sector needs 500,000 workers by 2030. Let me be direct... they're not going to find them at $18.50 an hour with unpredictable schedules and no clear career path. Not when the average wage across all industries in BC is $27. Technology will help at the margins (and 49% of Canadian hoteliers are already experimenting with AI to boost productivity, which is smart). But a kiosk can't make a guest feel welcome at midnight when their flight was delayed and they just want someone to look them in the eye and say "we've got you." The brands that figure out how to pay more, schedule better, and treat hotel work like a career instead of a gig are the ones that will have staff in 2030. Everyone else is going to be explaining to their owners why the $200 ADR property has 3.2-star reviews.

Operator's Take

If you're running a hotel in Canada right now, stop treating this like a hiring problem and start treating it like a compensation problem. Pull your labor cost data for the last 12 months. Calculate your revenue per employee versus 2019. I guarantee you'll find you're generating 30-40% more revenue per worker... which means you have room to pay more and still protect your margin. Go to your ownership group with that number. Show them the math. Then raise your starting wage to within 15% of the market average across all industries in your province. That's the floor. Below that, you're not recruiting... you're just posting jobs nobody's going to take.

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Source: Google News: Hotel Industry
Vancouver Hotel Got Caught Fighting the Union. The Board Didn't Just Rule Against Them... They Handed the Union the Keys.

Vancouver Hotel Got Caught Fighting the Union. The Board Didn't Just Rule Against Them... They Handed the Union the Keys.

A boutique hotel's management told supervisors to "stop the union," dangled wage increases, and pressured employees to pull their cards. The labour board's response was the nuclear option: certify the union anyway, no vote required.

I've seen this movie before. Every few years, some ownership group decides they're going to outsmart an organizing drive by throwing money at it. Bump the wages. Fix the stuff that's been broken for months. Suddenly management cares about the things housekeeping has been complaining about since forever. And every time... every single time... it blows up in their face worse than if they'd just let the process play out.

The Exchange Hotel Vancouver is a 201-room boutique property. Nice hotel. LEED Platinum heritage conversion, part of a $240 million development. The kind of place that wins awards and charges accordingly. UNITE HERE Local 40 started organizing housekeeping staff in November 2024. By mid-December, 26 employees had signed cards. Then management found out. And here's where it gets predictable. They held a staff meeting on December 13th. Offered to match wages at the "big hotels" downtown. Eliminated the flashlight room inspections that housekeepers hated. Changed the credit system for allocating work. All the things they could have done six months earlier but didn't... until the union cards started circulating. Between December 14th and when the union filed its application in February, exactly one new card got signed. One. The campaign was effectively dead. Mission accomplished, right?

Wrong. The British Columbia Labour Relations Board looked at that timeline and saw exactly what it was. They found violations on two sections of the Labour Relations Code. Management pressured employees to rescind their cards. Supervisors were directed to "stop the union." Future bonuses were dangled. The board called it a "pattern of impermissible activity" and noted this was the second time in less than a year that an affiliate of the same ownership group got caught doing this (they pulled similar moves at another Vancouver property). So the board went remedial. They certified the union without a vote. Just... here's your union. Deal with it. And they ordered the full decision posted on staff bulletin boards for a month. Which is the labour board equivalent of making you wear a sign.

Here's what most people miss about remedial certification. It's not a slap on the wrist. It's the board saying "you corrupted the process so thoroughly that we can't trust a vote to reflect what employees actually want." It's reserved for the worst cases. And it means ownership now has a union they have to bargain with, having spent political capital and employee goodwill fighting something they made inevitable by fighting it. I worked with a GM years ago who went through something similar. He told me afterward, "We spent $80,000 on labor consultants to avoid a union, and all we did was guarantee a union that hates us." That's the math. The ownership group here didn't just lose... they poisoned the well for their own first contract negotiation. UNITE HERE Local 40 has been on a tear in Vancouver. They just organized the Hyatt downtown and the Georgian Court. They're negotiating contracts pushing wages toward $40 an hour by 2028. The Exchange Hotel is now at that table, and they're sitting down with a workforce that watched management try to buy them off and then pressure them to change their minds. Good luck getting collaborative bargaining out of that relationship.

Look... if you're an owner or a GM and you find out there's an organizing drive at your property, the single worst thing you can do is panic and start making promises. I'm not pro-union or anti-union. I'm pro-not-being-stupid. Everything you offer after you learn about the drive becomes evidence. Every meeting you hold becomes a hearing exhibit. Every supervisor you tell to "handle it" becomes a witness against you. The employees who were on the fence? They just watched you prove the union's argument for them... that management only cares about working conditions when they're scared of losing control. If the housekeeping staff needed better wages and the flashlight inspections were unnecessary and the credit system was broken, you should have fixed all of that a year ago because it was the right thing to do for your operation. Not because someone handed out cards in the break room.

Operator's Take

If you're a GM at a non-union property and you hear the word "organizing," your first call should be to a labor attorney, not your department heads. Do not hold all-hands meetings. Do not offer raises. Do not change policies. Everything you do from the moment you learn about a drive is discoverable. Your second call should be to yourself, six months ago, asking why your housekeepers were unhappy enough to sign cards in the first place. Fix your house before someone else forces you to.

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Source: Google News: Hotel Labor
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