The Chamber is also concerned that an increase in minimum wage will have a negative effect on both business and the economy. The concern is that an increase in minimum wage will greatly hinder our ability to compete on an international level. It can also have serious negative impacts on the consumers, particularly those from low-income households, as it will undoubtedly raise the prices of products they purchase at home. Businesses today compete to sell their products in a global marketplace. Any increase in costs that is beyond a business' control is going to reduce that business' ability to compete.
Tourism is an excellent example.
BC competes for travellers with other destinations around the world and price is an important factor. An increase in the minimum wage would raise the price of our tourism product. Consequently, minimum wage levels have a profound impact on the retail, service and accommodation industries, especially those that are seasonal. We noted earlier that business will balance increased labour costs with capital expenditures. This, of course, presupposes that such capital expenditures are an option and this is not always the case.