Eastern Ontario ski hills blame rising prices on wages, hydro

Some ski hills in eastern Ontario say they're upping prices or trimming staff this season to deal with January's minimum wage increase and rising hydro costs.

Calabogie Peaks Resort, about 90 kilometres west of downtown Ottawa, has raised the price of some of its season passes to cope with the cost increases, according to chief operating officer Jim Hemlin.

An adult season pass jumped to $719 this year from $639 last season. The resort's early bird pass also saw an increase to $469 from $379. Daily lift tickets have increased by $2.

Hemlin said the resort's annual costs have increased by more than $500,000 over last year, and he's blaming wage increases and heftier electricity bills.

It's hard for everybody to swallow, and I get it. We just have to adjust to today's economy.- Jim Hemlin, Calabogie Peaks Resort

"It has to be absorbed someplace, and unfortunately it all falls down to the consumer having to share these costs," Hemlin said.

"It's hard for everybody to swallow, and I get it. We just have to adjust to today's economy."

The ski industry largely depends on seasonal minimum wage workers, and Calabogie employs an additional 140 workers during peak season. Hemlin said employees earning more than minimum wage have been given a commensurate bump in pay.

"All of a sudden we had minimum wage people making as much as people [who have been] here for three or four years, so everybody had to increase," he said.

Hydro costs have doubled over the last two years, Hemlin said, despite efforts to keep the resort's usage stable and lower costs through a variety of measures, such as converting to LED lighting.

Industry making adjustments

Mount Pakenham Ski Resort, about 60 kilometres west of Ottawa, has been able to avoid significant price increases to lift tickets, but has had to make other adjustments, according to the resort's director, Joanne Clifford.

Pakenham upped some of its season passes by about $5, but managed to mitigate the sting to customers by cutting hours and reducing staff, Clifford said.

But Pakenham doesn't have the same operating costs as Calabogie, which includes an onsite hotel and year-round activities.

Adding to the worry for eastern Ontario ski hills is the stiffening competition from resorts in western Quebec, which don't have the same cost pressures: Quebec's minimum wage is $12, and hydro costs are lower than in Ontario.

But Hemlin suspects the Quebec hills may start increasing their prices anyway.

"We're not the only ones that increase prices. The whole ski industry has," he said.