B.C. travel key to survival of hotels
Tourism industry urges residents to vacation close to home this summer
VICTORIA Hotels, motels and resorts are pinning their hopes on British Columbians choosing to travel within their own province this summer, as they face the bleak prospect of many months without international tourists.
As many as 30-40 per cent of more than 800 hotels in B.C. could close permanently if locals don’t fill the gap left by out-of-province visitors once hotels are allowed to reopen in June, said Ingrid Jarrett, president of the B.C. Hotel Association.
“It’s completely dependent on generating the travel experience in British Columbia this summer, and it really depends on how B.C. residents respond to travelling in their own province,” Jarrett said Monday. “If we aren’t able to save our summer from a travel experience and accommodation perspective, those dire numbers are what are being estimated.”
Currently, B.C. residents are being asked to stay close to home and avoid non-essential travel. But after the May long weekend, the province has a phased approach to ease local travel restrictions.
B.C. reiterated its position Monday that the U.S. border should remain closed for the foreseeable future, amid fears of the spread of COVID-19.
Widespread international travel also isn’t expected for probably a year, or until a vaccine is developed, provincial health officer Dr. Bonnie Henry has said.
Both measures have devastated B.C.’s $8.3-billion tourism industry, which employs more than 161,500 people. Within that is the $3-billion hotel sector, with 60,000 employees and 80,000 rooms at hotels, motels, lodges, inns and resorts.
Sixty per cent of hotels remained open as essential services, but roughly 40 per cent are closed, said Jarrett.
“It’s going to be a real challenge if we don’t recover some of our summer,” she said.
“But the numbers coming from Destination B.C. are interesting in that B.C. (residents) spend almost as much money outside of B.C. as international travellers spend coming to British Columbia. So if we do a good job of travelling around our own province ... we may come out of the summer OK. We’re all feeling so cautious right now.”
While B.C. is permitting hotels to reopen in June, the large conventions, festivals, weddings, concerts, sporting events and marquee attractions that would inspire people to travel in the first place aren’t going to be allowed any time soon. Casinos and certain spa activities like indoor pools are also closed.
Two of Metro Vancouver’s largest casino resorts — Parq Vancouver and River Rock — said in statements they are waiting on further guidelines from the province before considering reopening plans.
“There are so many moving parts at present, it’s really hard to predict, but really all we have to go on for the foreseeable future is domestic tourism,” said Walt Judas, CEO of the Tourism Association of B.C.
Another question remains how much money British Columbians will have to spend on travel and trips, after more than 400,000 people lost their jobs in March and April and the unemployment rate has jumped to almost 12 per cent.
The ripple effect of a tourism freeze in towns and cities that rely on visitors to fill their shops will be profound, said Val Litwin, CEO of the B.C. Chamber of Commerce. And yet there is hope locals will rise to the occasion, he said.
“We’ve seen the economic lift we give ourselves as a province on Family Day, when we go out on the holiday and patronize local businesses, and do activities as a family,” said Litwin. “It’s a tremendous economic boost to the province if we take that mindset in the year ahead. The biggest question mark here is that we don’t know when the borders will open to international travel, so given that uncertainty, it’s absolutely essential that we support our local tourism industry.”
Those within the sector are still appealing for more financial aid from the provincial and federal governments. While wage subsidies and property tax deferrals have helped a bit, more direct assistance is needed, said John Nicholson, vice-president of hotels and restaurants at Listel Hospitality Group, which operates Listel hotels on Robson Street in Vancouver and in Whistler, as well as the Bearfoot Bistro and Forage restaurants. All are closed.
“Our industry is going to get clobbered for a the next year and a half,” said Nicholson.
Without weddings or large gatherings, 25 per cent of the business on the catering side is gone, he said.
That could hurt the 230 employees Listel was hoping to bring back, said Nicholson.
Debt is piling up, and taxes, while deferred, still need to be paid later this year.
“It’s ridiculously scary how much money we’re losing,” he said.
“Government has said we’re not going to allow big events until a vaccine is developed. That could be two years. How do we survive?”
The hotel sector is working on a plan that could convince government to allow weddings, large gatherings and conventions later this year, said Jarrett.