Tourism Kelowna Reports Increased Visitors but Reduced Spending Amid Economic Challenges

What's Happening?

Tourism Kelowna has observed a rise in hotel bookings and airport traffic, indicating a steady flow of visitors to the region. However, Lisanne Ballantyne, President and CEO of Tourism Kelowna, notes that tourists are spending less due to changing consumer behavior influenced by economic pressures. While hotel occupancy rates have increased by 10% compared to last year, and airport passenger traffic is up by 9% for June and July, tourists are opting for more budget-friendly options, such as fewer restaurant visits. The impact of U.S. tourists is still being assessed, with anecdotal evidence suggesting a steady flow but no significant increase. Domestic tourism appears more confident, partly due to tariffs imposed by President Trump, which have led Canadians to seek vacations within Canada.

Why It's Important?

The shift in tourist spending behavior has significant implications for the local economy and tourism-related businesses. As tourists prioritize budget-friendly options, businesses may need to adapt their offerings to cater to this new demand. The decrease in Canadian travel to the U.S. by 25% over the past six months highlights the broader economic impact of tariffs and geopolitical tensions. This trend could lead to increased domestic tourism, benefiting local economies but also requiring adjustments in service and pricing strategies. The tourism sector must navigate these changes to maintain profitability and support local employment.

What's Next?

Tourism Kelowna and other stakeholders will continue to monitor spending patterns and adjust their strategies accordingly. The upcoming Thompson Okanagan Tourism Association 2025 annual general meeting will focus on navigating tourism's transformation, addressing the challenges posed by rising costs and changing consumer priorities. Discussions will likely explore innovative approaches to attract and retain tourists while balancing economic pressures. The industry must remain agile and responsive to evolving market dynamics to ensure sustainable growth.