Vancouver's tourism board sounding alarm bells over lack of hotel capacity
If the supply of hotel rooms doesn't increase, visiting Vancouver could become increasingly challenging in the coming years, according to the city's tourism board.
A new study released Monday by Destination Vancouver shows without an increase of hotel rooms in Metro Vancouver, the provincial economy could lose out on billions of dollars over the next few decades.
According to the data, to close the gap between supply and demand, 20,000 rooms are needed in Metro Vancouver by 2050, with 10,000 of those rooms needed in the City of Vancouver alone.
The study, titled Economic Analysis of Hotel Supply and Projected Demand in Metro Vancouver, 2023 to 2050, says the economic impact of not building those rooms between now and 2050 is projected to be over $30 billion in foregone output and $16 billion in foregone GDP.
All three levels of government would also lose out on an estimated $7.5 billion in potential tax revenue.
In the City of Vancouver, demand for rooms is expected to exceed supply in the summer months of 2026. The rest of Metro Vancouver will be short by summer 2028, and by 2040, the study shows year-round shortages across the entire region.
"Metro Vancouver's infrastructure is not keeping up in delivering on our global profile," said Royce Chwin, Destination Vancouver's president and CEO, in a written statement.
"This is critical because on our doorstep over the next few years are tennis's Laver Cup, the Invictus Games, next year's Grey Cup, and in 2026 we're a Host City for the world's largest single sports event, the FIFA World Cup."
Not a surprise to tourism minister
The shortage of rooms did not come as a surprise to B.C. Tourism Minister Lana Popham.
She said Monday she is "very aware" of the problem, and it was one of the first conversations she had with her federal counterpart after receiving her portfolio in December.
"I don't think there is a quick fix."
The minister said the federal government, First Nations and city leaders need to come together to work out a strategy for the future, especially with Vancouver FIFA World Cup coming in the summer of 2026.
Granville revitalization a potential solution
City council says adding supply will take time, but believes a revitalized Granville Entertainment District in downtown Vancouver could be part of the solution.
The Broadway Plan has also opened the door for more hotels along the Broadway Corridor with hopes they could take pressure off the use of Airbnbs.
"What you want to do is keep that local housing stock for locals," Coun. Sarah Kirby-Yung said. "In a very tight market, you don't want to see people renting it out for Airbnb."
About 1,100 hotel rooms are in the city's development pipeline, but there are no guarantees they will be ready for international crowds expected to arrive in 2026.
