Jasper Struggles with $700 Million in Insured Losses as Deals Collapse
The post-pandemic tourism recovery in the Alberta and B.C. Rockies took a severe hit this summer due to wildfires, including a devastating blaze on July 24 that destroyed a third of Jasper’s townsite.
Tourism-dependent businesses in Jasper ground to a halt after an evacuation order on July 22, affecting around 25,000 people, including 4,700 local residents. Of the town’s 1,113 structures, 358 were either damaged or destroyed.
Parks Canada reported that the Jasper wildfire complex, which spans about 32,000 hectares, is the largest the park has seen in a century and could continue burning for months. Authorities are now working on a re-entry plan for residents.
Cam Jenkins, the owner of Jasper Real Estate, noted that while summer is typically slow for real estate in Jasper, a few commercial and residential listings priced between $719,000 and $929,000 were impacted by the fires. He described a situation where both the seller and buyer lost their homes in the fire. “Remarkably, everyone still wants to move forward with the sales, even though there’s currently nothing to purchase,” Jenkins told Western Investor.
Having lived in Jasper for 33 years, Jenkins said it’s too early to fully understand the real estate market’s impact. Residents are still assessing losses, dealing with insurance companies, and considering whether to rebuild or relocate. “Some are deciding not to return to the community,” he said, noting that consecutive challenges—COVID, the Chetamon wildfire two years ago, and now this—have left many small, family-run businesses struggling.
Marmot Basin’s ski area, closed for the summer, reported that its main infrastructure remained intact, and it plans to reopen for winter. Jasper Skytram, while spared by the flames, requires a damage assessment.
According to the Insurance Bureau of Canada, natural disasters caused over $3.1 billion in insurable damages nationwide in 2023. A survey by Re/Max Canada found that 57% of Canadians now consider the threat of weather-related events a key factor in choosing where to live. Jasper’s estimated $700 million in insurable losses, including business interruption claims, ranks it among the most costly disasters in Canadian history, as reported by Morningstar DBRS.
Jenkins also highlighted the difficulties displaced residents face when dealing with insurance companies. “Some have been fantastic, but others are so difficult that lawyers have had to step in,” he said, advising brokers to ensure clarity in insurance policies.
