Tourists staying away in droves

By Mike Howell-Staff writer

A slowing economy and the Sept. 11 terrorist attacks in the United States have had such a dramatic effect on tourism in Vancouver that it will take the next two years to bring annual visitor numbers back up to 2000's 8.5-million mark.

Mary Prefontaine, director of business development and government relations for Tourism Vancouver, said statistics haven't been finalized but she estimates an anticipated 1.7 million visitors didn't visit the city in 2001.

"We've taken a definite beating in the industry," said Prefontaine.

An estimated 500,000 travellers failed to visit Vancouver from September to December 2001, depriving the city of $217 million in visitor spending.

Of that $217 million, $71 million was lost in accommodations, $52 million in the food and beverage industry, $39 million in retail sales, $22 million in recreation and entertainment, $9 million in public transportation and $24 million in businesses like sightseeing and shuttle services.

Visitor estimates for 2002 aren't much better: Tourism Vancouver is forecasting a decline of 200,000 visitors between January and March for a loss of $69 million. The estimates are based on a formula developed by a travel industry research group in New York.

"We're getting off to a very sluggish start," Prefontaine said. "But we truly hope our estimates are wrong and that we're really off the mark."

To attract more visitors, Tourism Vancouver is working with hotels, transportation businesses and the food and beverage industry to better market the city. As a result of uncertainty in the travel industry, Tourism Vancouver has implemented a 90-day budget plan so it can change its strategy during the year as dictated by the highs and lows of travel patterns, Prefontaine said.

It's also counting on traditional events such as the Celebration of Light fireworks display, the Vancouver International Jazz Festival and the Indy car race to attract more visitors.

The majority of visitors to Vancouver are from Canada and the U.S. but Prefontaine didn't have a current breakdown on the numbers. In 2000, however, 4.8 million Canadians from outside Greater Vancouver visited the city, while 2.2 million people came from the United States, including 575,000 from Washington State.

Tourism Vancouver plans to continue to advertise in U.S. markets, particularly in Washington State.

Stephen Darling, general manager of The Westin Grand Hotel at 433 Robson St., cited the recession in the U.S. and the terrorist attacks as major factors in a $1.3-million decline in revenues at his hotel between September and December 2001.

"[The hotel industry] was going sideways before Sept. 11; Sept. 11 was the catalyst that quickened it," said Darling.

The occupancy rate at Vancouver hotels in 2001 was 65 per cent, down from 68 the year before, but 1,000 more hotel rooms were built in the city since the 1999 inventory, said Prefontaine. The city has about 15,000 hotel rooms.

Tourism Vancouver is a private business association with more than 1,000 members from all facets of tourism and related support businesses in Greater Vancouver. Its 2002 budget is $10.4 million, 85 per cent of which comes from a two per cent hotel tax.