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The Impact of COVID on Cruise-Related Tourism in BC

Author - Hospitality Emporium

The Tourism Industry Association of B.C. stated that cruise ships provide approximately $2.7 billion dollars to British Columbia's economy per year. Tourism brought by cruise ships assists in supporting the numerous tourist-oriented businesses in British Columbia's coastal and seaside cities such as Vancouver, Victoria, Tofino, and Prince Rupert, as well as the many hospitality enterprises located in these towns. The tourism industry accounts for $15 billion of Metro Vancouver's economy, of which $2.2 billion is brought in from cruise lines. Therefore, it is quite understandable that preventing cruises from anchoring in Canada would result in the tourism industry suffering a substantial loss.

The COVID-19 pandemic resulted in numerous travel restrictions in Canada, which included banning the stoppage of cruise ships at Canadian ports. The ban is the leading cause for the tourism industry being one of the hardest-hit sectors in Canada's economy. The pandemic regulations caused Vancouver alone to suffer losses of $5-7 billion, resulting in the city's tourism dwindling to about a third of what it once was. The ban on cruises was also one of the last travel restrictions to be revoked; the government reneged on the ban around the beginning of 2021, resulting in tourism being among the last industries to return to its previous level of success.

The year 2022 saw the beginning of the tourism industry's recovery, with Vancouver being on the receiving end of 307 cruise ship visits. Vancouver Fraser Port Authority's cruise services manager Mandy Chan believes that "this season will be even more impressive," as the Port of Vancouver is anticipating a record amount of cruise ship visits this summer. Approximately 331 cruise ships prospectively carrying 1.3 million passengers are expected in the summer of 2023 in Vancouver alone, making this year the most beneficial year for the industry post-pandemic.

The executive director of the Gastown Business Improvement Association Walley Wargolet discussed the significance of tourism, cruise-related and otherwise, in the Lower Mainland: “It’s really, really important for us to have a solid tourist season this year. You don’t need to spend a lot of money, each person, in order to have such a positive, economic boom to the neighborhood.” He stated that many businesses had been unable to turn a profit due to the lack of tourism they relied on, as well as the increasing property taxes and the federal excise tax which has been adversely affecting liquor sales. Throughout the pandemic, Hospitality Emporium has been doing everything possible to assist both large and small businesses in the hospitality industry. As Hospitality Emporium is an online wholesale retailer, hospitality clients were able to obtain anything they required to run their business during COVID-19 while concurrently reducing in-person contact, allowing them to avoid endangering themselves to the virus.

The CEO of Destination Vancouver, Royce Chwin, stated that "each ship has about a $3 million impact locally," further emphasizing the importance of cruise-related tourism for the hospitality industry and other local small businesses. Chwin added that economic benefits from tourists are not limited to retailers and restaurants, but extend to "all the supplies required to reset a ship. [...] the food, all the beverages, whether local labour is used to help support the ship while it’s at port, so there are a number of other economic impacts.” According to the CEO, the businesses that will face an influx of customers due to the influx of tourism this year are fully staffed, a reassurance that is necessary due to the labour shortage caused by the COVID-19 pandemic; Chwin acknowledges that appropriate staffing to prevent overworking labourers is an area that is still in need of improvement.

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