C-19 BULLETIN - August 26, 2020
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Op-ed by Metro Vancouver Tourism and Hospitality Industry Response
and Recovery Task Force
Tourism businesses can’t weather this crisis alone, sector urgently needs targeted government aid. A recovery will depend on smart and targeted investments in our sector. We can’t weather this alone.
Without question, the tourism and hospitality sector has been devastated by the COVID-19 pandemic.
Almost overnight, the industry saw a remarkable and distressing change. Starting with a downturn in visitors during Lunar New Year in January, our industry faced necessary shutdowns to protect public health.
We are now coping with the loss of our peak season this summer with the cancellation of the cruise season and all large meetings, conventions, and lifestyle and sporting events until a vaccine or effective treatment for COVID-19 is found. The cumulative effect has left many local operators struggling to survive. Who knows how long this will last?
In Metro Vancouver, the tourism and hospitality sector supports 105,000 jobs and generates $14.4 billion in visitor spending annually, an outsized share comprising almost two-thirds of provincewide tourism economic activity. Our local operators market our incredible destination to the world, showcasing the beauty and diversity of a region immersed in nature with stunning vistas, spectacular events and truly memorable adventures, all served up with the best of West Coast hospitality. Metro is also a critical source market and gateway for visitors to the rest of B.C.
There is no arguing that the provincial government has done an excellent job managing COVID-19 from a health-and-safety perspective. Our industry fully supported the initial travel and gathering restrictions even though the reality of these measures seriously impacted thousands of tourism businesses.
In planning for recovery, government and the industry encouraged British Columbians to be tourists in their own backyard, which would provide a much-needed boost to struggling tourism providers as we travel within the province and spend our vacation dollars closer to home.
But as this pandemic continues and B.C. remains in the current reopening phase, we know local visitors are simply not enough to sustain this industry. Metro’s visitor economy was built on — and thrives on — the mix of visitors we welcome from near-and-far.
As the tourism peak season winds down, our businesses are telling us with urgency that domestic travel isn’t making up for the absence of visitors from Canada, the U.S. and international source markets, and that they need urgent relief to get them through the coming winter.
Without government investment and support, we can expect massive job losses and business closures before the end of the year here. The projected economic losses on tourism in Metro this year due to COVID-19 are substantial and the industry expects to see a loss of $9.8 billion in visitor spending, $5.8 billion in GDP, $2.6 billion in taxes to government and 72,000 full-time equivalent jobs.
In these challenging times, one thing is clear — the visitor economy in Metro needs provincial support to bring it back to life. We have a great deal to contribute to the province, but equally, a great deal that needs protecting — in the immediate term, and for the future. An investment in tourism will give local taxpayers the biggest bang for their buck in terms of jobs and tax revenue. Every employee brought back to work is one less person dependent on government programs like CERB.
The COVID-19 health pandemic is the perfect storm in communities across B.C. Despite recent increases in visits this month to a few regions, here in Metro a staggering number of our local businesses are seeing revenue shortfalls of up to 90 per cent. As we look to the fall and winter season, and zero events, zero conferences and very limited business and domestic travel, there will be no recovery for our tourism sector without direct government investment and support.
The Tourism Industry Association of B.C. has asked the province for a $680-million recovery package. Without financial investment and support this year, many of Metro’s businesses will not make it to 2021. We’re urging action necessary to counter the devastating effects of COVID-19.
A recovery will depend on smart and targeted investments in our sector. We can’t weather this alone.
Ted Lee is the CFO of Tourism Vancouver. Nancy Small is the CEO of Tourism Richmond and Ingrid Jarrett is the CEO of the B.C. Hotel Association. They’re the co-chairs of the Metro Vancouver Tourism and Hospitality Industry Response and Recovery Task Force.
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Pandemic Continues to Impact Tourism Businesses
The 2020 tourism season in Victoria will be coming to a close near the end of September. We normally have millions of tourists from all over the world and 300 cruise ships that visit our city to support the local economy. Americans and cruise ship passengers make up 70-75% of our annual sales. International tourism accounts for 10-15%, and Canadians 5-10%.
Our sales year to date continue to be down 87%. With the US-Canada border closed and world travel almost non-existent, we have no chance to generate the sales needed to pay our rent, staff wages, supplier goods, overhead, etc. Additionally, without our usual summer revenue we will not have the funds necessary to carry us through the slow winter months.
We have run a successful retail business for over 21 years, employing over 70 staff members. We have paid millions of dollars in tax revenue to the local, provincial, and federal governments over the years.
The government programs offered have kept our business afloat to date, most specifically the CEWS (wage subsidy) and CECRA (rent relief).
We desperately need both programs to continue until our industry recovers. The tourist industry is a vital contributor to the Canadian economy and especially the local Victoria economy.
The rent relief program was extended for July and August and wage subsidy into 2021. PLEASE CONTINUE TO EXTEND THE RENT RELIEF PROGRAM AS WELL, ESPECIALLY FOR SEVERELY IMPACTED BUSINESSES AND SECTORS.
Thank you.
David and Jill Glowicki
Pier 815 T-shirts and Gifts, Victoria
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BC Hotel Association Update
Pulse Check Results
The BC Hotel Association (BCHA) Pulse Check showed some positive signs of summer business in resort destinations around the province such as Tofino, Courtney, the Okanagan Valley and Whistler. While it is promising that some destinations have seen an increase in visitation, this is sadly not the case for the rest of British Columbia. And as we enter into fall and winter seasons, we face the harsh reality that these numbers are expected to significantly drop.
While one of our main concerns is the ability to recall employees, the BCHA survey results did indicate a 10% increase in the amount of employees that were able to be recalled in comparison to our July Pulse Check. However, there remains 30,000 employees compared to 2019 numbers not working. This is directly due to restrictions on group, corporate, convention, tour and conference business, as well as continued low occupancies in the province. Without the international market reopening, this is unlikely to change, although opening the domestic market could make a measurable difference.
Of the 30,000 laid off positions around the province, it is estimated 10,000 is for banquet, catering, and culinary positions, and approximately 10,000 are positions that were not hired in the Spring of 2020 due to COVID-19, as they were seasonal jobs filled by working holiday visas, students and foreign workers. The balance of 10,000 is directly due to low occupancies which impact every department in a hotel, from rooms, to food and beverage, maintenance, housekeeping to name a few.
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Tourism Kelowna
2020 Industry Performance and Forecast
Rebound? A Closer Look at the Data
While hotel occupancy and visitation numbers are increasing—and remain higher than the provincial average—the data also reveals that length of stay is shorter than normal. More people are coming to Kelowna, but they are spending less time here.
Lower than normal hotel occupancy paired with higher than normal visitation indicates more people may be staying with friends and family or in other accommodations, like short-term rentals or campgrounds.
Fall Outlook
The travel booking window is currently very short. In fact, one online travel site noted that about 1/3 of bookings were happening within the week of travel. Looking into September, bookings through the Labour Day weekend appear strong, but then drop sharply and continue at that level through to the end of the year. This is concerning as after a challenging first half of 2020, businesses will need to generate revenue in the second half of this year to continue operations. Tourism Kelowna's efforts to support local businesses, to focus on providing information to travellers and residents, and to remind visitors to #exploreKelowna safely and responsibly will continue.
Fall Marketing
Heading into fall, Tourism Kelowna will continue to focus their marketing activities within the province until inter-provincial travel is again encouraged. Their marketing message will encourage longer stays where visitors can slow down and take in more of what Kelowna and the Central Okanagan has to offer. Good weather combined with safe community health conditions would drive the strong visitation numbers needed to extend revenue for local businesses into the fourth quarter.
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Meeting in Person
Destination Greater Victoria's Board of Directors and management held a physically distant but productive meeting last week. The Victoria Conference Centre did a great job with cleanliness measures, health and safety protocols and other important steps such as directional signage. We can start to meet again safely and in small groups.
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St. Eugene Golf Resort and Casino
Closing for Winter
Due to the impacts of COVID-19, St. Eugene Golf Resort and Casino has made the decision to temporarily cease all of its operations, with the exception of the Casino of the Rockies, for the winter season on Thanksgiving Monday, October 12th. St. Eugene will re-open fully for the 2021 spring and summer in April as a seasonal resort with a year round casino going forward.
“We expected to see fewer guests this winter because of COVID-19, and this decision will now allow for St. Eugene to focus and plan for what we do extremely well, and that is offering a unique destination of choice in a historic setting during the spring and summer in the Kootenays.” said Barry Zwueste, CEO.
Currently, the resort’s casino, like all casinos in BC, remains temporarily closed due to COVID-19. The Resort is looking forward to when the Casino can hopefully resume year-round operations in November pending government approval.
This marks a significant change in the operation of St. Eugene and is one that will see the resort thrive and prosper in the years ahead.
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Big White Ski Resort
Significantly Changes Hiring Strategy
As Big White Ski Resort adjusts to the reality of tourism in a world with COVID-19, they're also having to adjust their staffing model for the upcoming ski season.
Limited international travel and visa restrictions have heavily impacted the ability of non-Canadians to fill positions at the ski resort, which traditionally hires many workers on temporary work visas.
Local and domestic employees have made up about 30% of the workforce in previous ski seasons, with the remaining 70% made up by international workers.
Prior to the COVID-19 pandemic, Big White employed up to 1,400 full-time and part-time staff to keep operations running at the resort.
“It’s like reverting back to the 80s, when we would go on hiring clinics through the prairies to find groomer drivers, rental shop personnel, lift operators, and other on-mountain team members,” says Big White Senior Vice-President Michael J. Ballingall.
He's hoping Canadians will take interest in the idea of working a season at the ski resort, especially those based in Kelowna.
Ballingall says the resort will need to house staff in Kelowna and bus everyone back and forth for shifts, due to the other problem they're currently facing - limited availability at on-mountain accommodation facilities.
During the 2019/2020 season, Big White completed construction of new staff accommodation at Black Forest, boasting four buildings that could house 192 staff members.
However, as a result of the pandemic, that number has been halved, and the maximum number of people per room at other staff accommodation facilities on the mountain will be reduced to two.
Priority roles that need to be filled as soon as possible include lift operations and certified ski and snowboard instructors. The resort also needs to fill roles in food and beverage, rentals, retail, repairs and Central Reservations.
To view current positions available, and for more information on working a ski season at Big White, click here.
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Canadian Camping Appreciation Weekend
September 11th to 13th
From September 11th to 13th, privately operated campgrounds coast-to-coast are participating in the 2020 Canadian Camping Appreciation Weekend to celebrate the camping and RVing lifestyle!
Camping is an affordable family activity that promotes a sense of community, creates lifelong memories, and encourages Canadians to discover Canada's rich landscape and engage with nature.
Although British Columbia has consistently maintained a lower level of COVID-19 cases – the risk is still high. When it comes to touch points and face-to-face gatherings, such as camping, we want to help minimize your risk with the following Tips for Camping and RVing.
Campers can access a special weekend stay offer of two-nights camping for either $50, $60, $70 or $80 at participating campgrounds (Sep 11-12/Fri-Sat). As well as the weekend offer, many campgrounds are offering promotional stays of "Five nights for the price of four" around the weekend (check the listing offers).
To ensure you can get the campground of your choice, reservations must be made in advance directly with the individual properties.
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Business Operations Recovery Check-in Survey
The Metro Vancouver Tourism and Hospitality Response and Recovery Task Force is collecting data in order to better understand the operating status, reopening timeline, and preparedness of businesses and attractions impacted by COVID-19 pandemic. This is a follow-up survey; the first survey was sent to you in May.
The data will be collected and stored by the Downtown Vancouver Business Improvement Association, who is an official member of the Task Force. This information will be maintained with the strictest confidentiality. No personal data will be shared with the public. Only information about the business or attraction’s operating status may be shared with the public.
This survey should take no more than 3 minutes. The survey will close on Friday, August 28th at 11:59 PT.
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2020 go2HR Strategic Planning
Employer Survey
Help shape the Future of go2HR
After a year of transition, go2HR is charting a new course and needs your input on how they can best meet the needs of industry. It is a timely question given the impacts of COVID-19 on the industry and the long, uncertain road ahead. Now more than ever, go2HR needs to be supporting businesses on the road to recovery. To inform their future direction, they need to hear industry’s voice….your voice.
go2HR recognizes the value of your time, particular during this pandemic. If you are an employer, they ask for 15 minutes to complete this survey to offer your valuable insights on the key human resource issues facing the industry and how go2HR can best help the industry in dealing with these issues going forward.
Whether or not you are an existing user of go2HR's services, they want to hear from you! The
survey is open until September 18th. Your input will help shape a new strategic plan for go2HR that will be shared in the new year.
go2HR is working with Qatalyst Research Group. Any information you provide will be compiled by Qatalyst, held confidential and reported only in summary form with the responses of other participants.
Should you have any questions, please feel free to contact info@go2HR.ca
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TIABC and the BC Hotel Association (BCHA) will be hosting a webinar and open forum to outline the key issues and provide a reality check on the tourism and hospitality industry, our key messages, and ways we can coordinate and work together towards recovery.
Wednesday September 2nd @ 1:00pm-2:00pm (PT)
The webinar will be 45 minutes in duration, with a 15 minute Q&A to follow.
Please complete the registration form and a Zoom link will be sent to you with meeting details the day prior to the webinar.
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Canada Emergency Wage Subsidy (CEWS)
Q&A
With the extension of the Canada Emergency Wage Subsidy (CEWS) until December, The Canada Revenue Agency (CRA) is hosting two interactive question and answer sessions for eligible employers on CEWS. These sessions will respond to general questions about CEWS and provide resources needed to apply.
Session #21 - Canada Emergency Wage Subsidy (CEWS) - August 28th 11:00am
Session #22 - Canada Emergency Wage Subsidy (CEWS) - August 31st 11:00am
To register: If you are interested in participating in one of these sessions, please email Matthew Hohnsbehn (Matthew.Hohnsbehn@cra-arc.gc.ca) and indicate the session # (see above). A confirmation email will be sent containing the WebEx link and other important information.
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Small Business BC Webinar
During COVID-19, business owners have been looking at different ways to cut costs and become more efficient. What if it was possible to achieve this goal while helping to reduce transmission of COVID-19 at the same time?
Delivered by Sam Thomas, Principal and Kootenay Branch Manager of Prism Engineering, and Tiago Pereira, Energy Solutions Manager at FortisBC, attendees will learn practical steps for making the workplace safer, while also saving money in our “new normal.” We’ll also be covering tips for making your space cost-effective, COVID relief incentives for small biz and plumbing/environmental controls.
What Will I Learn?
Best practices in HVAC and safety during COVID-19 reopening
How to develop a pandemic response plan
Steps to prepare your business for a potential second wave
Identifying opportunities for increased energy efficiency in your business
Available rebates and energy saving resources from Fortis BC
Wednesday September 2nd @ 10:00am (PT)
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October 2
October 7
(call for Board Nominations open until September 11th)
October 26-27
September 21-25
November 17-18
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****NOTE: TIABC's C-19 Bulletin is now published every Monday, Wednesday, and Friday.
Feel free to send us your ideas on what information would be valuable for TIABC to share through our COVID-19 Bulletin going forward. Drop us a line at info@tiabc.ca.
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