It’s late July, midway through summer, and several tourism businesses have reached out to ask us how things are faring (and generally feeling) this year so far and into summer. While some of the data and research take time to get to us, and some sectors and industries may have different or unique factors, we can provide overall sentiment and broader themes.
For the available data, for the most part, Q1 and Q2 (January through June) performed strongly, showing growth over past years. Since we are still at the front end of Q3, we do not yet have any data or statistics back; however, we realize the peak summer travel months are critical for revenue and local tourism businesses are curious about the general picture. We have heard from some businesses they are experiencing solid summer bookings, and others have said levels are down slightly from last year. Our general assessment is that Q3 may be near or slightly below last year's volume.
What We’re Monitoring & Hearing in Q3
Image credit: Nic Collar Film
Industry Indicators – Hotel Occupancy and Average Daily Rate
- We expect hotel occupancy to be around 80% in July, with higher occupancy on the weekends and lower occupancy on the weekdays.
- We expect average daily rates to be around the same as July 2023.
- Changes to provincial and municipal legislation for short-term rentals came into effect in May, impacting overall accommodation inventory levels in our destination.
- We’re also noticing that booking windows (the time before a visit that a traveller makes a reservation) continue to shrink. A large percentage of bookings are coming within two weeks of travel.
Destination BC has a helpful industry dashboard where you can see Kelowna’s data and other data points across the province.
Industry Indicators – Visitation Numbers
- We collect visitation numbers through research partners, and it takes a while to collect, develop, and share the data. We do not have official visitation numbers yet for 2024.
- Until visitation numbers are received, we rely on anecdotal information. Some businesses are reporting strong visitation numbers while others are indicating lower-than-expected visitation numbers. We expect visitation levels may be near or slightly below last year. We will continue to monitor this and seek out data as soon as it available.
- Passenger volume at Kelowna International Airport was up in the first half of the year. You can access the monthly stats here.
Industry Indicators – Spending
- We are hearing from some businesses that spending levels are strong, and we are also hearing from some local businesses that spending may not be at the level they were anticipating or projecting. This could be because of various factors, including economic factors like rising costs and decreased discretionary spending among some consumers.
Note: Tourism Kelowna is finalizing an industry dashboard we can share with local member businesses; watch for that in the coming months.
What We’re Doing
Image credit: Nic Collar Film
- We have marketing tactics running throughout the year, as well as seasonal advertising campaigns. In 2024, we had additional paid advertising running in the spring and have plans for a campaign in the fall. We have updated our marketing plans with additional tactics over the summer months to help increase interest and bookings.
- We’re continuing with strong content marketing activities showcasing a variety of activities and local businesses to help disperse visitors and help them discover all of the options available in Kelowna.
- Our team at the Kelowna Visitor Centre helps visitors plan their vacations and recommends local businesses to check out. The team also attends community events to offer mobile assistance to visitors and residents.
What You Can Do
Image credit: Shawn Talbot Photography
- Keep in touch with us: We appreciate hearing from you about how business is going. You can reach out to any of our team members with questions or updates. Our Membership & Industry Development lead, Jacqui Dowling, is an excellent point of contact for discussing how Tourism Kelowna can benefit your business.
- Monitor the weather: We know that when the weather is good and warm, people head for the beach and lake, with related outdoor activities seeing additional business. When it’s not hot, consumers seek out other activities. It might be an interesting activity to track sales revenues and weather.
- Offer incentives, if you can: Consumers are looking for ways to save money. Offering sales, incentives or discounts may help increase interest and traffic to your business.
- Continue to provide excellent customer service: Kelowna and the Central Okanagan are known for their terrific year-round hospitality, and it’s a secret weapon to ensuring visitors and local customers return. Let’s keep showing off our Okanagan charm!