Province downplays drop in Vancouver hotel bookings ahead of World Cup

Hotel bookings are down in Vancouver as the World Cup nears, raising more questions about whether the economic benefits have been overhyped.

The provincial government is downplaying statistics from Destination Vancouver revealing June hotel bookings are down 20 per cent compared to last year, quashing expectations of a World Cup bump.

Vancouver’s mayor has repeatedly estimated the seven games over a month will be “the equivalent of 30 to 40 Super Bowls in the city,” but when CTV News reached out to Ken Sim’s office to discuss the hotel numbers, we received no response.

When asked about the disappointing figure, Jobs and Economic Growth Minister Ravi Kahlon said, “we know people are going to come,” pointing out sceptics have been wrong before.

“We heard for the last few years that the numbers for cruise ships is going to go down and then never did,” he told reporters at the legislature. “We’ve heard a lot of different things (and) it’s all speculation. It’s going to be a busy time.”

Reaching for 100%?

The promised economic boom never made sense to Moshe Lander, a sports economist with Concordia University, who pointed out big international sporting events rarely deliver on lofty political promises.

“Hotel occupancy in Vancouver in the months of June and July is normally about 95 per cent,” he told CTV News. “So if you’re not building new capacity, then at best you’re just going to replace one set of tourists with another and maybe push that incremental capacity to 100 per cent.”

He said it’s rare for hotels to drop their prices when some guests have paid big bucks for their rooms, so it’s unlikely that ticketholders waiting for a deal will get one.

Lander also warned taxpayers that “the real cost of the games is going to show up in about three months because that’s when the bills start coming,” and that “the benefits will be even less” than anticipated.

Vancouver hotel prices top the list

Vancouver’s not an outlier in lackluster hotel activity ahead of the World Cup, which is taking place across 16 cities in Canada, Mexico, and the U.S., with American hotels already reporting weak reservations through the tournament.

Related: Foreign ticket holders from World Cup qualifying countries won’t have to pay bonds to enter U.S.

A Jackpot City Casinos study comparing ticket prices and hotel rooms found that while Vancouver has some of the most reasonably priced tickets, averaging $500 per game, the opposite is true for hotel rooms.

Related: Canada’s host cities for the World Cup among most expensive to visit: reports

They found fans will pay an average of $922 per night for a three-star hotel, while staying in New York City after a soccer match will cost $484. In Toronto, the average is a trim $300 per night but tickets cost an eye-watering $1,300 per seat.