2.05.2025

"PEI Tourism Faces Labor Shortage Amid Student Cap"

HALIFAX — Members of Prince Edward Island’s tourism industry say Ottawa’s decision to cap international student permits will lead to labour shortages in the sector

HALIFAX – The tourism industry in Prince Edward Island is expressing significant concern over Ottawa's recent decision to implement a cap on international student permits. This policy change is anticipated to lead to severe labor shortages within the sector, particularly affecting key areas like hospitality.

In light of the cap and a notable decline in enrollment figures, Holland College, a prominent institution in the region, announced the discontinuation of eight programs. Among these are three vital programs specifically designed for training students in the hospitality sector: marketing and advertising management, tourism, travel and event management, and hotel and restaurant operations management.

Corryn Clemence, the CEO of the Tourism Association of P.E.I., emphasized that local operators—encompassing hotels, restaurants, and festival organizers—have historically depended on these educational programs as essential sources of skilled employees. The reduction in available training schemes raises fears among industry stakeholders about the potential impacts on service quality and visitor experience.

Susan Freeman, director of Meet P.E.I., echoed these concerns, stating that partners across the island rely on graduates from these programs to effectively manage their accommodations and organize events. The presence of a well-trained workforce has been a cornerstone of industry operations, and its absence could hinder the sector's growth and ability to meet demand.

Sandy MacDonald, president of Holland College, reported alarming statistics reflecting the negative impact of Ottawa’s new restrictions. He stated that the college has experienced an 83 percent reduction in its international student population as a direct result of the permitting cap, contributing to a staggering $7 million decrease in the institution's revenue.

Tourism remains a vital part of Prince Edward Island's economy, attracting nearly 1.7 million visitors annually and generating approximately $88 million in provincial tax revenues in the previous year. The ripple effects from reduced educational opportunities for international students could thus have profound implications not only for the tourism industry but for the province's economic stability overall.

As the tourism sector braces for the challenges posed by labor shortages, stakeholders are urging a reevaluation of the policies that have led to this unprecedented decline in workforce availability. The reliance on international students has become a crucial factor in sustaining the tourism ecosystem on Prince Edward Island.