Log In


Reset Password

Wage increase would hurt tourism

Gov. Tom Wolf’s proposal to raise the minimum wage to $12 could have a drastic effect on the seasonal businesses that are key to Carbon County’s economy.

The Wolf administration says that the proposal will boost income tax revenues and help close the state’s budget deficit without a tax increase.But for ski areas and white-water rafting outfitters, which contribute a big chunk to tourism in Carbon County, it would make a lot of their workforce a lot more expensive.“There needs to be an exception for seasonal, part-time employees,” said Paul Fogal, owner of Pocono Whitewater.Seasonal businesses contribute directly and indirectly to the local economy.They typically run tight margins, and those margins can be tighter when weather doesn’t cooperate.Young, part-time, seasonal employees making somewhere in the $8 range are key to keeping the business profitable, operators say.“It doesn’t mean I’m not a fan of a higher minimum wage, but it’s complicated when you look at what our customer base will bear. Most businesses don’t make a ton of profit on this,” Jerry McAward of Jim Thorpe River Adventures, said.Tourism is the number one industry in Carbon County. Attractions like rafting and ski resorts result in increased spending at restaurants and hotels from areas like New Jersey and Philadelphia.“If we raise prices, that stuff goes as well,” Fogal said. We refer a lot of people to various businesses — camping, hotels. “We get asked a dozen times a day where to eat,” Fogal said.The employees who would be affected by the proposal are typically not supporting a family on it. Most are high school kids. The rest are usually people with full-time employment who simply enjoy guiding or teaching ski lessons, Blue Mountain Resort President Barb Green said.“Eighty percent of the people would say one of their first jobs was at an attraction or restaurant or something related to tourism. It’s where we learn major skills,” Green said.There is currently an exemption in the state’s employment law that allows ski areas to pay under the minimum wage. But Green said they find that the market sets what employees are willing to make.She said that if the minimum wage is raised, it needs to contain a similar exemption.The Carbon County Chamber of Commerce favors a somewhat similar approach. Executive Director Marlyn Kissner said there should be regional minimum wages set based on the cost of living in that area. For the Lehigh Valley area, including Carbon, they favor $9.25.“There is no question that employees should be compensated fairly. However, what will the impact be on our local businesses and shouldn’t they have a say?” she asked.The governor’s proposal needs approval from the Republicans, who have put forth a proposal that would raise the minimum wage about $2.The state has until June 30 to pass a budget, assuming it gets done on time.“I think it’s a long way off — the first salvo was just sent by Gov. Wolf,” McElroy said.