PAUL NURSEY
VICTORIA – There is a lot of excitement in the Greater Victoria community. It appears the visitor economy is on the verge of a bounce back spring and summer, and those of us at Destination Greater Victoria could not be happier.
Analysis of Greater Victoria hotel data from the first quarter of 2022 and bookings through July 2022 reveal the Greater Victoria visitor economy is recovering from the COVID-19 pandemic more quickly than forecast. Forward-looking hotel booking data also suggests hotel booking pace is returning to close to 2019 levels. Year-to-date 2022 hotel occupancy is 123 per cent when compared to hotel occupancy during the same period in 2021. Year-to-date 2022 average daily hotel room rate is 144 per cent when compared to the same period in 2021 and year-to-date revenue per available room (RevPAR) is 178 per cent when compared to the same period in 2021.
There are several drivers of Greater Victoria hotel booking recovery. These include pent up demand for travel, easing of restrictions on gatherings, and Destination Greater Victoria initiating recovery marketing and promotional campaigns in source markets like Vancouver, Calgary, Toronto, Seattle, and San Francisco. Recovery is trending better than what is predicted by sources such as Destination Canada, who predict full recovery in 2026. It should be noted recovery remains uneven and not all businesses are seeing a quick recovery. It depends on customer segments or specific business niche. Furthermore, transportation access to Vancouver Island will remain a risk as ferry and airline operators address their own capacity challenges.
Significant debt loads incurred during the COVID-19 pandemic, tight labour market conditions, and inflationary pressures are also concerns. But a return to stable and sustainable revenue for Destination Greater Victoria members following two years of hardship is a reassuring development. Full recovery will still take several years, but we are on the right track and Destination Greater is confident the Greater Victoria visitor economy will recover fully before 2026.
As revenues return and business becomes more certain, this confidence provides a boost to potential investors in our visitor economy. For example, the City of Victoria approved two new downtown hotels in fall 2021. The two new hotels will be located at Broad St.’s 1300-block between Yates St. and Johnson St., and at Fort St. and Blanshard St. There are also hotels in the planning stage at Pandora St. and Government St., and Blanshard St. between Fairfield Rd. and Burdett Ave., as well as experiential attraction investments such as a new wellness spa at Ship Point. Successful destinations do not only need strong marketing campaigns to bring visitors to the destination, but continual reinvestment in their hotels and attractions to remain competitive as well.
Destination Greater Victoria will be at the forefront of attracting visitors, as well as growing and diversifying the local visitor economy. We cannot rest on our laurels and take for granted our forecasts will be realized. We will continue to work hard for our members to deliver on their behalf. Their success is our success, and we look forward delivering in 2022.
Paul Nursey is the President and CEO of Destination Greater Victoria
