Warmer temperatures and tighter budgets threaten tourism industry in 2024: Tourism Kamloops

Post-COVID recovery, outdoor activities, the Rocky Mountaineer and the Trans Mountain pipeline were vital boosts for the local economy, bringing tourists and business-oriented visitors to the city.

Tourism Kamloops’ revenue also saw a rise from $3,290,918 in 2022 to $3,841,298 in 2023. However, expenses rose as well, from $2,358,316 in 2022 to $2,970,625 in 2023.

Although economic impacts and visitor numbers have increased in 2023, spending on marketing has risen substantially due to the shift in travelling priorities among tourists. Climate change and economic instability have hindered the travelling capabilities of domestic and international tourists, leading to more expenditure in advertising.

Average occupancy rates for tourist accommodations in Kamloops grew to 74.2 per cent in 2023 from 72.8 per cent in 2022, as well as the average daily rate, which rose to $153.23 this year, compared to $137.62 in the previous.

Nevertheless, MRDT revenue — a 3 per cent tax applied to short-term accommodations like hotels — fell from $2,860,130 in 2022, to a total of $2,489,813 in 2023.

Occupancy rates clearly show an increase in the stream of tourists visiting Kamloops, even if average accommodation prices have also risen until September 2023 — though this rapid price climb is expected to constrain tourist budgets in the new year, leading to a decrease in numbers.

The fall of MRDT revenue while tourist numbers and room prices rise simultaneously evidently suggests the significant expenditure on marketing strategies and preparation.

A warm winter, a dry summer, budget constraints and a lack of events in 2024 are raising concerns in the industry.

“Our industry partners are nervous. We’re hearing words like ‘uncertainty,’ ‘concern’ and ‘dire conditions’ when asked about the future,” said Dickinson.

Of the various strategic goals planned between 2023 to 2027, Tourism Kamloops aims to stimulate tourism in the new year by launching a new website, implementing the creation of five new touristic experiences, increasing collaboration with influencers and completing their Destination Master Plan.

by Adam Campbell

Warmer temperatures and tighter budgets threaten tourism industry in 2024: Tourism Kamloops

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