Greater Victoria's tourism sector continues to bounce back. Statistics are tracking ahead of last year and even 2019 in some categories. Chemistry Consulting's latest Tourism Bulletin shows the rate of an average hotel room in June was higher than the same month in 2019. Hotel occupancy was 77.85%, compared to 38.22% last year and 83.79% in 2019.
A new hotel has been proposed at the Victoria International Airport.
“We see the addition of a hotel at this location as a logical fit and a great new amenity for the airport and community,” Victoria Airport Authority’s President and CEO Geoff Dickson said in a news release. “It is an opportunity for Victoria International Airport to further diversify its revenue base which has been dramatically impacted by the pandemic.” The proposal is for a 129-room New TownePlace Suites by Marriott. Construction is expected to begin in 2023 and the hotel will include a restaurant, meeting space, pool and gym. The Greater Victoria Harbour Authority is preparing to welcome the nine millionth passenger to the Victoria Cruise Ship Terminal at Ogden Point. The lucky passenger arrives Friday afternoon.
"Many businesses in Greater Victoria provide services for cruise ships and their passengers, and welcoming the ninth million unique visitor shows how much the work of these businesses has made our region appealing to travellers," Greater Victoria Chamber of Commerce CEO Bruce Williams said. "As travel opens up around the world, we are proud to see Greater Victoria has earned its place as a preferred destination for cruise ships." The ten millionth cruise ship passenger is expected in Victoria by 2024. Changes are coming to one of downtown Victoria's most celebrated boulevards. The City of Victoria has been working on a redesign of Government Street, which has retained much of its streetscape for 50 years.
Last week, Victoria's Committee of the Whole set a date to vote on approving the redesign for July 28. The Chamber worked with members and partner organizations to provide input on the proposal. "Government Street is an attraction for residents from around our region and visitors to our destination," Chamber CEO Bruce Williams said. "Investing in a refresh helps build economic resilience, but we'd like to see the businesses that have made Government Street so attractive steer this project to make sure it has the best chance of success." BC Ferries is offering advice to help travellers navigate the unique challenges of a weekend book ended by national holidays in Canada and the US.
Expect heavy traffic, book early and be patient are a few of the suggestions. Other tips include planning to travel mid-weekend to avoid the heaviest traffic and planning ahead to beat the heat while waiting for your ship to arrive. A surge in the supply of goods from overseas over the next few months could see retailers offering discounts if they suddenly need to balance inventory with demand.
North American ports have faced major disruptions over the past few years, with BC's main port in Vancouver ranked among the most inefficient in the world in 2021. The only ports that fared worse in the Container Port Performance Index were on the US West Coast. The uncertainty caused by the pandemic and volatile trade conditions has made it more difficult to manage the arrival of goods from overseas. The situation is improving but it will take time for supply chain networks to return to previous efficiencies. This might be good news for consumers and help reduce inflationary pressure but will mean many businesses need to remain nimble and adjust their overseas purchases. It's also a reminder of the importance of supporting local producers who are less affected by shipping disruptions. As well, the proposal to improve the deep sea port facility at Port Alberni represents a tremendous opportunity for the Island and the entire province. BC Premier John Horgan has admitted the province failed to properly explain plans to replace the Royal BC Museum, and has put the project on hold.
“I always try to act in the best interests of British Columbians,” Horgan said in a news release. “That involves listening. That also means taking responsibility when you make the wrong call.” The museum is no longer scheduled to close this fall, and a new round of public consultation will begin to hear what British Columbians want to do with the institution. "Kudos to the province for hearing what we, and many others, told them we didn't like about the initial announcement," Chamber CEO Bruce Williams said. "The Royal BC Museum is a pillar of Greater Victoria's tourism industry so, first and foremost, we need it to stay in our region. The museum is deeply connected to our economy and benefits many of our members. What we want to see is the province make an investment in this asset that drives visitation, excites the intellect and creates revenue for our region and the province." The Chamber also fully supports a more inclusive narrative about our province that shares the story of Indigenous people as well as all of the diverse communities that make up the fabric of who we are today. Construction continues on a new Collections and Research Building in Colwood. It will house museum artifacts once completed. Starting June 20, travellers will no longer be required to show proof of vaccination when boarding a plane or train in Canada. Federally regulated workers will also no longer need to reveal their vaccination status.
The federal government has opted to suspend the requirements, which could be reinstated if the COVID-19 situation changes. The change does not affect the steps that need to be taken by Canadians returning from international travel. As well, travelling to other countries requires following their entry rules, including proof of vaccination to enter the US. Federal vaccine mandates for travel were put in place on Oct. 30, 2021. Meanwhile, long lineups continue at Service Canada centres caused by people seeking to renew their passport. An additional 600 workers were hired this month to help alleviate the backlog as passport applications jumped. The federal government expects as many as 4.3 million applications over the next two years. Almost 1.3 million passports applications were processed between April 1, 2021, and March 31, 2022. That compares to 363,000 the previous year. Tourism businesses are back in a big way, as pent-up demand has operators planning for a boom this summer season.
According to Chemistry Consulting, BC Ferries recorded massive increases in the number of vehicles, passengers and buses between April 2022 and April 2021. Greater Victoria hotels are also reporting hotel vacancy and room rates that are back to or surpassing pre-pandemic levels. "It's heartening to see our tourism members getting back on their feet after enduring exceptionally challenging circumstances during the pandemic," Chamber CEO Bruce Williams said. "We'll be continuing to work with our community partners to encourage local support for tourism and hospitality business throughout the summer." After the initial announcement of plans to replace the Royal BC Museum created a storm of controversy, the provincial government tried again to explain their rationale with the release of the final business case today.
"If we had seen the business case when the original announcement was made, it might have helped with some of the sticker shock our members are feeling," Chamber CEO Bruce Williams said. "We're going to keep working with our members to help those that can pick up some of the traffic, as well as with the museum and the province to try and mitigate the loss of a major attraction for eight years." The province said it's not possible to keep the museum open while rebuilding because of the complexity of moving items and safely removing hazardous materials. The current building has outlived its useful life and there are potential risks to its stored collections as well as staff and visitors. There is a cost to doing nothing, Minister for Tourism, Art, Culture and Sport Melanie Mark said at today's technical briefing. The province estimates that the cost of the project — currently at $789 million — will increase the longer it is delayed. Greater Victoria's business community is showing its resilience as a new report shows commerce continues to strengthen and grow.
“Despite headwinds facing the global economy, our region has roared back and we’re in a good position to really take flight as we welcome our traditional tourism season,” Chamber CEO Bruce Williams said. “These indicators make it clear that people can’t wait to get back to our vibrant downtown and enjoy all the amazing experiences our businesses provide.” The report shows that there were 314,730 more pedestrian trips to downtown Victoria in the first three months of 2022 than the same period last year. The City of Victoria issued 7,623 business licences in the first quarter of 2022, up from 7,187 in the same period in 2019 before the pandemic. The Victoria International Marina was abuzz with stories of intrepid adventure and precision planning as it hosted the largest gathering of Nordhavn yachts to date. The Nordhavn Owners Rendezvous was held at the marina last week as participants prepared to explore BC's coast. Among the vessels was the Motoryacht LARS, which holds a submarine capable of handling arctic exploration and scientific research.
"The gathering is a sign that things are getting back to pre-pandemic levels right now," Chamber CEO Bruce Williams told the Times Colonist. The provincial government appears committed to its plan to rebuild the Royal BC Museum over the next eight years at a cost of $789 million. The museum was founded in 1886 and has been in its current location since 1968.
The Chamber will work to support businesses affected by the change, including attractions that now have an opportunity to increase their profile. “You can come downtown and go to the Bateman Gallery, you can go to the Bug Zoo, you can go to the Maritime Museum — there are still a lot of attractions around and plenty of things to do,” Chamber CEO Bruce Williams told CHEK News. “The work to modernize the Royal BC Museum is a legacy project that will enrich, inspire and continue to benefit British Columbians and Indigenous Peoples for generations to come," RBCM CEO Alicia Dubois said in the provincial news release. There are plans for travelling exhibitions, regional displays and an interactive walking tour in Victoria while the new museum is being built. The Chamber hosted BC Ferries President and CEO Mark Collins last week, with more than 60 business leaders at the Coast Victoria Hotel & Marina by APA.
“We had a highly engaged audience who learned about ongoing efforts to electrify the ferry fleet and reduce greenhouse gas and noise emissions," Chamber CEO Bruce Williams said, adding that many employers in the room were also keenly interested in BC Ferries work to find and keep workers. The recent addition of 500 new employees helped the corporation add more than 100 extra sailings for the Victoria Day Weekend. City of Colwood Mayor Rob Martin, who attended the meeting, stood up to eloquently ask everyone in the room to call on the province to fund a formal study of a commuter ferry between Royal Bay and downtown Victoria. The concept is supported by BC Ferries and The Chamber, and now requires political will to become a reality. “The Chamber has a long history of working with BC Ferries to connect this vital Island link with leaders in Greater Victoria’s business community and it was great to hold another successful in person meeting,” Williams said of the May 12 Business Leaders Luncheon, sponsored by Seaspan Victoria Shipyards. If you're flying out of Victoria International Airport, be prepared to get there early and have plenty of patience. The airport's website recently added a live update for the current wait time to get through security screening to help passengers plan ahead. The website currently suggests domestic travellers arrive 90 minutes before their flight, while international travellers give themselves two hours.
A pent-up demand to travel has resulted in long lines at airports across Canada. "This follows two tumultuous years that resulted in a significant number of layoffs throughout the aviation industry, including the security-screening workforce," states a news release from the Canadian Air Transport Security Authority. Unemployment was up slightly for April, with fewer people active in the labour force in Greater Victoria, according to the latest report from Statistics Canada.
Our region's unemployment rate was 4.4% last month, compared to 4.1% in March. There were a total of 228,100 people in the labour force in April, down from 229,800 in March. Greater Victoria's business community has a well-deserved reputation for its compassion and generosity.
The Chamber is hearing from members who want to help people fleeing the ongoing war in Ukraine. "We're connecting with our national chamber network and have reached out to the federal minister of immigration," Chamber CEO Bruce Williams said. "We want refugees arriving in Canada to know that Greater Victoria is a welcoming community." Canada has approved more than 91,000 of the 204,000 applications it has received through the Canada-Ukraine authorization for emergency travel process. Less than 2,000 will likely be re-located to Vancouver Island. However, those that do will need housing and, in many cases, jobs to help them integrate into our community. The Chamber is working with our community partners to identify potential opportunities for billets or temporary housing. Employers in Greater Victoria can help by posting any job openings to a special federal job bank for Ukrainian refugees. "We know many of our members have opportunities for skilled workers and we will do everything we can to try and provide stability for Ukrainians who have been forced to flee their homeland through no fault of their own," Williams said. The arrival of Holland America's 1,200 passenger Koningsdam last Saturday was a welcome sight for Greater Victoria's business community. It was the first time in more than 900 days that a cruise ship had sailed into Ogden Point.
Chamber CEO Bruce Williams was on hand to emcee a welcoming celebration, hosted by the Greater Victoria Harbour Authority. “Normal isn’t quite a word we can use yet,” Williams said to Global News. “But by seeing things recovering in the sense that we can now gather like we are, and see things coming back like this ship, means we are indeed on the way to recovery, and getting ourselves back to the way were were before, so it’s a great feeling of pride." The 2022 cruise ship season will see 364 ship calls from now until early November with an anticipated 780,000 passengers. The cruise ship season is expected to begin Saturday with the arrival of Holland America's Koningsdam.
The season was initially set to kick off today, but, as we've come to expect over the last two years, the arrival of the Caribbean Princess has been delayed out of an abundance of precaution. "We're learning to live with COVID-19, and that means we can expect occasional hiccups," Chamber CEO Bruce Williams said. "We are in good place, with the vast majority of people protected through immunization against serious illness. However, The Chamber supports the work of the Greater Victoria Harbour Authority to put safety first as it welcomes a new cruise ship season." Last fall, The Chamber was part of a multi-organization effort to work with government to ensure cruise ships would be back in 2022. At the time, the GVHA estimated 759,000 passengers will visit our region aboard 350 ships from now until November. For an up-to-date schedule of cruise ship arrivals at Ogden Point, go to gvha.ca. “The start of cruise ship season is another sign that Greater Victoria is reconnecting with the world,” Williams said. “International visitors provide a significant boost to our region’s economic ecosystem, which truly flourishes when all sectors are able to achieve their potential. It’s exhilarating to once again show off our spectacular corner of the world to travellers. On behalf of all Chamber members, I’m thrilled to welcome the first passengers back to Greater Victoria.” The return of international visitors is good news for our region's tourism sector.
The recent announcement by Kenmore Air that regularly scheduled flights between Seattle and Victoria will return on April 1 is a great step forward. The Seattle area is a major source of visitors to Victoria and we know businesses here can't wait to welcome them back. Adding flights creates more options for travellers, including the previously announced return of the Victoria Clipper on April 15, and the Greater Victoria Harbour Authority's start of a new cruise ship season on April 6. To help spread the word, Destination BC has launched a new $6.7 million marketing campaign aimed at international visitors. The campaign, called Discover the BC Effect, aims to "drive emotional urgency" that will encourage people in Washington, California, Britain and Australia to travel to our province. The effort will complement Destination Greater Victoria's ongoing $2.2 million campaign. Canadians aren't letting pain at the pump or higher grocery bills get them down.
According to the latest report from the Conference Board of Canada, consumer confidence is up 2.2% in March from the month before. The conference board found that Canadians were buoyed by the strong labour market recovery with 26.8% optimistic that job opportunities will increase by the fall. That's up 4% from February. However, more Canadians expressed reservations about their current (up 4% to 29.2%) and future finances (up 5.1% to 25.6%). “We want this plan to support downtown businesses for the long-term by building on the success of the Build Back Victoria program, create more accessible and welcoming public spaces, and work with the Songhees and Esquimalt Nations to tell a more complete history of this land through cultural interpretation and economic development opportunities,” Helps said.
The draft design includes a new gateway to a Lekwungen plaza at Humboldt and an intersection realignment to create a new plaza for Chinatown. Area businesses can expect to receive an invitation to one of two virtual discussions on March 8. There is also an online survey at engage.victoria.ca. City seeks to re-imagine Government Street One of Greater Victoria's most iconic public spaces is getting a modern makeover. The City of Victoria announced today that a draft plan for redesigning the downtown street is ready for public feedback. “Making Government Street a people-priority street is a key action of the City’s Strategic Plan and now it’s time to tell us what you think – what have we got right, what have we missed?” Victoria Mayor Lisa Helps said in a Government Street hasn’t changed in more than 50 years. Replacements are needed for ageing street furniture, trees, traffic signals and other infrastructure.Chamber Events “We want this plan to support downtown businesses for the long-term by building on the success of the Build Back Victoria program, create more accessible and welcoming public spaces, and work with the Songhees and Esquimalt Nations to tell a more complete history of this land through cultural interpretation and economic development opportunities,” Helps said. The draft design includes a new gateway to a Lekwungen plaza at Humboldt and an intersection realignment to create a new plaza for Chinatown. Area businesses can expect to receive an invitation to one of two virtual discussions on March 8. There is also an online survey at engage.victoria.ca. BC Minister of Finance Selina Robinson met with Greater Victoria Chamber of Commerce members today to address your questions about the province's 2022 Budget, unveiled yesterday.
Minister Robinson expects economic growth even as provincial debt increases. This year's $71 billion budget is forecast to have a deficit of $5.5 billion, followed by a $4.2 billion deficit in 2023/24. Robinson said the main reasons for the deficits are the anticipated costs of rebuilding damaged transportation infrastructure to withstand future climate events. Asked whether the province planned to ease the burdens of the EHT — which took $207 million more than anticipated from BC employers last year — or paid sick days, the minister defended the government's current policies. She also acknowledged concerns about linking the minimum wage to inflation and said she will work to make the change as smooth and predictable as possible for business. Budget Notes: Greater Victoria is getting two complex care facilities, though specific locations were not announced. The budget also includes $84 million over three years for planning and capital funding for upgrading the Belleville Terminal. The tourism sector has been allocated $25 million to help with recovery efforts, though a further $915 million was set aside for potential pandemic-related expenses, including health care costs or economic recovery funding. Greater Victoria is also in line for numerous “bus and shoulder” expansions to improve regional transit, and money has been earmarked for the transit hub at Uptown in Saanich. “The Chamber has long advocated for child care as an investment in our economy, and we applaud the province’s commitment to adding 40,000 new spaces within seven years. We also are encouraged by some of the steps to address our lack of housing supply,” Williams said. With recently announced dates for returning in-person events to full capacity, tourism businesses can begin work on attracting major business events and conferences in our region. To help, the province recently announced the Business Events and Conferences Restart Fund, which will provide up to $5 million this fiscal year and up to $3 million next year to help restart business travel.
The money will help destination management organizations, such as Destination Greater Victoria, which will be able to submit proposals to access the new funds. The province also announced $1.3 million to fund dedicated human resources specialists for two years to attract more workers to the tourism industry. Throne speeches are typically more pomp than particulars, and yesterday's ceremonial start to a new session at the BC Legislature was no exception. However, there were a few items of interest to business in Greater Victoria.
Minimum wage, which went through a series of increases to reach $15.20/hour in BC, will now be tied to the rate of inflation. The housing market, under pressure due to a lack of supply, will soon face a regulated "cooling off period" for buyers. A new plan is being developed to train British Columbians to meet the one million job openings expected in the next 10 years. There were also mentions of modernizing the Royal BC Museum, taking action on reconciliation and improving child care by making it a function of the Ministry of Education. "What we didn't hear was an adequate plan to help business by reducing unfair costs such as the Employer Health Tax, or cutting red tape," Chamber CEO Bruce Williams says. "We're looking forward to hearing details next week about how government will help business and build resilience in our economy." Chamber Event: A conversation with BC's Finance Minister on Feb. 23 |
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