Brief: Dip in Revelstoke hotel occupancy contrasts with increasing tourism numbers

A delegation from Tourism Revelstoke presented an overview of their 2018 numbers to Revelstoke’s city council on Feb. 12.

Tourism Revelstoke marketing director Meghan Tabor and Revelstoke Accommodation Association board member Peter Nielsen presented an annual update full of growing numbers, but flagged concerns about a decrease in hotel occupancy rates.

Revelstoke Visitor Centre visits

Visits to the Revelstoke Visitor Centre continue to grow each year. The centre has seen increases in each season, year on year. The total number of visitors has increased by 43% between 2015 and 2018.

Seasonal disparities

The demographics of summer and winter visitors to the info centre are quite different. First off, the visitor centre is way busier in the summer. A total of 36,733 visitors were counted last summer, but only about 10% of that number, or 3,853, came during the winter months. Winter guests are more likely to be here for a reason — such as winter sports. They already know what they want to do with their time here.

Image: Tourism Revelstoke

In the summer months, many more visitors arrive for a day or two via the highway, and often don’t have pre-determined plans.

The demographics are also different, with more Canadian visitors in the winter and a surge of European visitors in summer.

Vacation rentals

Tourism Revelstoke has actively lobbied against illegal vacation rentals ever since the new wave facilitated by online rental platforms like AirBnB caused vacation rentals to proliferate several years ago. The delegation again pressed council for changes to outlaw them, and also took aim at the existing legal rentals, noting they pay residential, not commercial rates.

File photo: Jana Thompson, Revelstoke Chamber of Commerce Executive Director; former marketing coordinator Sara Peterson; Tourism Revelstoke Marketing Director Meghan Tabor; Tourism Revelstoke Marketing Coordinator Eva Akopian. Photo: Aaron Orlando/Revelstoke Mountaineer Magazine

“We’ve seen significant growth … around Airbnb and the vacation rental. There’s a lot of demand for it,” Nielsen said.

Nielsen said December 2018 was a record month for skier numbers at Revelstoke Mountain Resort (RMR), then questioned why that didn’t translate into increased occupancy numbers. Nielsen, who is also the vice-president of operations at RMR, said December occupancy numbers in Revelstoke were down 1% compared to 2017.

Tabor said that annual occupancy numbers across town were down 6.9% in 2018 over 2017.

“Where are they staying?” Nielsen questioned. “I think we all know the answer to why that is,” Nielsen said.

“I think it demonstrates the impact [illegal vacation rentals] does have,” Nielsen said.

Nielsen asked council to consider “what actions can be taken to create a level playing field,” adding that illegal vacation rentals also impacted the resort’s ability to house their workers.

“Vacation rentals are definitely on the forefront for this council,” Sulz said. “We appreciate it bringing it forward to us.”

However, CAO mayor Allan Chabot noted the Ramada Hotel had opened, the Stoke Hotel had been renovated, and that the majority of the condos at the Mackenzie Village development were legal vacation rentals, saying those factors would depress the occupancy rates at their competitors.

Nielsen requested that council take action on illegal vacation rentals.

“We know that illegal and legal ones do not … pay commercial taxes,” said Nielsen, calling it a “significant missed opportunity for Revelstoke.”

An increase in the MRDT?

In response to a council question about whether Tourism Revelstoke had considered increasing the Municipal & Regional District Tax program (MRDT) rate, which sees a 2% tax added onto hotel rental bills, Nielsen said that it was something that had been discussed.

The funds collected under the program are channelled back into tourism development programs. The rate can be increased to 3%, which would raise more funds for tourism promotion activities.

Nielsen said that it may be a possibility in the future, but it would require ongoing discussion with tourism stakeholders, and some technical requirements to align with the program.

Correction: An previous version of this story quoted Peter Nielsen as stating that occupancy numbers at RMR were down by 1% in December of 2018 over the previous year. In fact, occupancy numbers were down across Revelstoke by 1% that month. 

For more check out Tourism Revelstoke’s Feb. 12 report to council here:

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