A recovering post-pandemic tourism season in the Alberta and B.C. Rockies has been undercut by wildfires this summer – including one that destroyed a third of Jasper’s townsite on July 24.
Tourism-dependent businesses came to a sudden stop in Jasper with a July 22 evacuation order. About 25,000 people in the national park were affected, including about 4,700 Jasperites. A total of 358 of 1,113 structures were destroyed or damaged.
According to Parks Canada, the Jasper wildfire complex – estimated at about 32,000 hectares – is the park’s largest in 100 years and could burn for months. The Municipality of Jasper and Parks Canada are working on a re-entry plan.
Broker Cam Jenkins, owner of Jasper Real Estate, said while summer is a “slow time” for Jasper real estate agents, a few commercial and residential listings – ranging from $719,000 to $929,000 – were affected.
“We had a closing where the seller lost their home and the buyer was not able to buy the home that burnt down, but the buyer also was selling their home to close the week after and they lost their home,” Jenkins told Western Investor. “Everybody is still wanting to move forward with the sales, which is remarkable considering, at this point in time, there’s nothing to purchase.”
Calling Jasper home for 33 years, Jenkins said it’s too soon to know the full effects on real estate as residents determine what was lost, contact insurance companies and consider rebuilding. While many are eager to return, some might relocate.
“We’re already becoming aware of people that are not going to be returning to the community,” he said. “The few years of COVID, the Chetamon wildfire two years ago, and now this has definitely got a few of our small family-run businesses reeling.”
Marmot Basin confirmed on its website that its main infrastructure remained intact. The ski area, closed in summer, plans to operate this winter. Jasper Skytram posted an online update stating that while fire did not destroy infrastructure, a damage assessment is needed.
Natural disasters caused more than $3.1 billion in insurable damages in 2023 nationally, according to the Insurance Bureau of Canada. A 2022 Leger survey for Re/Max Canada found that 57 per cent of Canadians say a key factor impacting their housing location is the potential of future weather-related events.
Estimated insurable damages in Jasper are about $700 million, including claims for business interruption, making it one of the most expensive disasters in Canadian history, according to credit rating agency Morningstar DBRS.
Jenkins said dealing with insurance companies is one of the biggest challenges for displaced Jasperites.
“Some of them have been absolutely amazing, and some are behaving in such a manner that lawyers are having to get involved,” said Jenkins, advising brokers to be clear about insurance policies.
Economic impact
Visitors to Banff, Jasper and Canmore collectively spent $2.3 billion in 2019, leading to $2 billion in GDP, 23,600 jobs and $308 million in taxes, according to a 2023 Town of Banff report. During the pandemic, the Rockies lost $1.3 billion in visitor expenditures.
With about 40,000 people in and around Banff during summer, the town typically attracts up to 60 per cent of the region’s visitor expenditures. While spending declined to about 51 per cent from 2019 to 2021, economic recovery has been quicker than expected with Canadian and U.S. visitors, according to Banff Mayor Corrie DiManno.
“International visitors haven’t come back to quite the same level as pre-pandemic,” said DiManno.
Banff’s fire protection includes reducing fuel for wildfire, FireSmart programs and emergency response training with Parks Canada, municipal firefighters and regional fire service partners.
DiManno said it’s too early to say how Banff’s tourism has been impacted by the Jasper wildfire.
“We can speculate that some folks who had planned to go to Jasper have now come here,” she said.
As of early August, 117 wildfires were burning in Alberta’s protected forests while more than 320 wildfires raged across B.C.
