Can industry rebound from pandemic?
`Probably no other sector of B.C. economy ... has been more impacted' by pandemic
As the annual B.C. Tourism Industry Conference was set to begin in Victoria last March, organizers decided to tack on an extra session about the COVID-19 virus rapidly spreading across the globe.
“We were feeling a bit nervous,” recalled Walt Judas, CEO of the Tourism Industry Association of B.C. “We thought we'd be in a for a difficult three or four months. In no way did we anticipate we'd still be in this a year later.”
As the 2021 event, now called the B.C. Tourism and Hospitality Conference, moves online starting today, a series of speakers and panels is expected to tackle topics from inclusion and reconciliation to sustainability and mental health. But the focus will undoubtedly be on reviving one of the industries hardest hit by the pandemic.
“There's probably no other sector of the B.C. economy that has been more impacted by the COVID crisis,” said Jock Finlayson, senior policy adviser with the Business Council of B.C. “It has been a devastating 12 months for tourism operators. Many are struggling to see their way through.”
While the economist is optimistic that these “dark and dire” days will not last forever, it is unclear “when we will see better days and who will be around to see them.”
Tourism operators dependent on international travellers have borne the brunt of the crisis as visitor numbers to B.C. have collapsed by 80 or 90 per cent, said Finlayson, but the “carnage” is widespread with businesses that rely on cruises, conferences and events also struggling, along with those that serve visitors, such as hotels and restaurants.
MAKING PLANS
“It's been hard,” said Amber Rittinger, co-founder and CEO of Be Wild Adventures and Wellness, which runs hiking tours between Vancouver and Whistler. “Our client base has been mostly international. We've been trying, as far as our hiking trips go, to target locals, but there are so many free hikes and hiking groups that the interest isn't there.”
Instead, the company has been focused on providing experiences — “that feeling you get out in nature” — as well as wellness and outdoor education opportunities.
Their “bubble-sized” small group tours that take people to gorgeous natural locations have helped pay the bills, along with small business grants. The company also reduced staff and parked one of its vans, even though it is still making loan payments.
“We've been working on our marketing, so when things open again, we'll be ready to go,” said Rittinger.
Planning is also underway at Destination B.C., the industry-led Crown corporation that handles global marketing and destination development, with several scenarios in place for when different types of travel are allowed to resume, said Maya Lange, vice-president of global marketing.
Destination B.C. plans to double-down on domestic marketing this summer with a campaign focused on the experiences every British Columbian should have.
“I'm very confident that this summer we'll see solid travel within B.C.,” said Lange. “It's a massive opportunity for British Columbians to explore our own province.”
Judas agreed the resumption of B.C. travel is key to restarting the tourism industry, but it really needs borders reopened. His organization has been speaking to government about a restart plan, with the hope that rapid testing could be used to speed up the process. “If we can't reopen the borders in the summer — if it's late fall or winter — there will be some businesses that won't be able to reopen,” he said.
STEMMING THE LOSSES
Rapid testing is also on the B.C. Hotel Association's radar, said CEO Ingrid Jarrett, pointing out that several other sectors, including film and energy, have had success keeping operations going by using it.
Regardless of government support for rapid testing, “I think we may see industry taking it on because they have to,” she said.
With hotel occupancy at about seven per cent in Vancouver and four per cent in Victoria, some properties have been closed since March. It is now approaching 16 months of losses for hotels that don't open during the winter.
Jarrett said the hospitality industry is also asking the provincial government for property tax relief.
“Many hotels are considered large businesses, so they've been left out of government programs,” she said.
Tourism operators are also making suggestions for how the various levels of government might be able to help. Rittinger said loan deferrals could help stretch her capital until international tourism comes back.
Capilano Suspension Bridge is hoping the federal government will extend the wage subsidy, said communications manager Stacy Chala. “This is at least helping some businesses keep their doors open and their long-standing
We thought we'd be in a for a difficult three or four months. In no way did we anticipate we'd still be in this a year later.
staff employed. Without the wage subsidy, most tourism businesses wouldn't survive.”
Finlayson urged governments to give more thought to “anchor” assets — the world-class attractions that draw people to B.C. where they are then able to support smaller operators and other businesses.
“If you lose an anchor, you can't suddenly replace that when the pandemic is over,” he said. “There will be collateral damage.”
It is a similar situation for airlines, as grounded planes and lost routes are not quickly or easily reestablished, but tourism is reliant upon them, he said. By extension, airports, including regional hubs that bring tourists inland where they spend money in smaller communities, may also need support.
If there is a silver lining to the pandemic, it is the renewed co-operation and communication happening at all levels of the tourism industry, said Anthony Everett, CEO of Tourism Vancouver Island.