Tourism tumbles by $100M amid economic downturn
Calgary’s tourism industries are looking for ways to bounce back after the number of visitors to Calgary dropped significantly last year.
In a new report going to council next week, Tourism Calgary released figures showing 800,000 fewer visitors to Calgary in 2016 compared to the previous year. The lack of travellers translated to a loss of $100 million in tourism revenue spent by visitors coming to Calgary for work or play last year.
Calgary took in $1.6 billion in tourism dollars last year compared to $1.7 billion in both 2014 and 2015. And, according to the report, the economic downturn “continues to be felt across the tourism industry in Calgary,” resulting in a lack of travellers and dollars spent.
“It has affected the hotel industry poorly,” Coun. Richard Pootmans said, adding the number of business travellers to Calgary is more than “double the national average.”
The report shows 25 per cent of overnight travellers come to Calgary for business, while the national average is 11 per cent.
But the report states business travel has been experiencing a “steep decline since the fall of 2014,” and the number of rooms sold in Calgary fell 3.3 per cent in 2016.
The supply of available hotel rooms in Calgary grew 5.9 per cent last year, while overall occupancy rate declined, falling 5.5 per cent to 58.1 per cent across the city.
“The decline in overnight visits is a direct reflection of the economic conditions, and the resulting decrease in business travel and lower consumer confidence in regional markets,” the report said.
Pootmans said it remains to be seen if the downward trend in tourism will continue but he is hopeful that an influx of visitors to Banff for the Canada 150 celebrations will give a boost to the tourism industry in Calgary.
Coun. Ray Jones said building a new arena and event centre in Calgary could help bring some of those lost tourism dollars back to the city by moving from the “B circuit” of concerts to the “A circuit.”
“You see what’s happening in Edmonton with their new arena, they’re drawing big crowds and they’re also making money … those things add to your city’s wealth,” Jones said.
Both Jones and Coun. Gian-Carlo Carra said they were surprised by the amount of lost tourism revenue given the low Canadian dollar compared to its American counterpart.
The report said Tourism Calgary will be looking at a number of ways to bring visitors back to Calgary, including working closely with stakeholders such as YYC Calgary International Airport, Calgary Stampede and the Calgary Bid Exploration Committee.
The report also said Tourism Calgary plans on targeting specific international markets to try to attract more tourists.
A primary focus will be put on drawing visitors from China, Japan, Australia, the U.K., Germany and the U.S., with a secondary focus on Mexico, South Korea and France.
Neither Tourism Calgary nor the Calgary Hotel Association could be reached for comment Sunday.