Tourism now a billion-dollar business
The last official survey we did was in 2011 when the economic impact was $840 million.
The Okanagan Saturday
Tourism in Kelowna packs a $1.25 billion annual punch, making it one of the biggest economic engines in the city, right up there with construction, health care, high technology, education and manufacturing.
“The last official survey we did was in 2011 when the economic impact was $840 million,” said Tourism Kelowna CEO Nancy Cameron.
“We've had positive indicators every year, so we were expecting growth, but to have solid numbers and breaking the $1 billion barrier is great and gives validation to what a large and important sector tourism is in Kelowna.”
The study shows 1.9 million tourists visited the Central Okanagan in 2016 spending $337 million directly on accommodations, activities, meals and shopping.
Add in gross domestic product ($620 million) and tax revenue calculations ($142 million) associated with tourism and the total economic output adds up to $1.25 billion.
The five-year growth is rapid and astounding.
The $337 in visitor spending is a 21 per cent hike from 2011.
The increase in tourists is 27 per cent from 1.5 million in 2011 to 1.9 million in 2016.
And the total economic impact is up 49 per cent to $1.25 billion from $840 million.
“We have quality and quantity,” said Cameron.
“More tourists spending more is good for the economy and the community.”
Kelowna is also getting more sophisticated as a tourist destination.
“The city is now known for its wine and restaurants,” said Cameron.
“We have that cosmopolitan urban vibe of a friendly mid-sized city wrapped by a fabulous environment that has it all from great hotels, wineries, agriculture, golf, skiing, the great outdoors and, of course, the lake.”
Five years ago, 20 per cent of tourists flew into Kelowna, the rest drove here from closer-in markets elsewhere in the province, from Alberta and Washington state.
Now, 26 per cent of tourists fly here, indicating they have more money to spend and are utilizing Kelowna's growing non-stop and connecting flight network.
“Non-stop flights to and from Toronto are very important,” said Cameron.
While Kelowna is a world-class destination, the majority of tourists who visit here are from Canada, most from those drive-in markets of elsewhere in B.C. and Alberta.
“Expanding our markets is what's important and what will help us grow,” said Cameron.
“The U.S. is a key opportunity. The exchange rate provides value for Americans and our product is spectacular.”
To do more marketing in the U.S., and across Canada and around the world, Tourism Kelowna will use bolstered funds generated from the hotel tax.
The tax is currently two per cent on all hotel rooms, which raises about $1.6 million a year for Tourism Kelowna to spend on marketing.
The tax will go up to three per cent on July 1 and raise $2.4 million annually.