Victoria’s Fairmont Empress hotel closed for three months in late 2020, early 2021, to undergo renovations in leveraging slower hotel traffic because of COVID-19 restrictions. A new report from Statistics Canada find many businesses in the accommodation and food services sector are bracing for another tough year. (Courtesy of Fairmont Empress hotel)

Victoria’s Fairmont Empress hotel closed for three months in late 2020, early 2021, to undergo renovations in leveraging slower hotel traffic because of COVID-19 restrictions. A new report from Statistics Canada find many businesses in the accommodation and food services sector are bracing for another tough year. (Courtesy of Fairmont Empress hotel)

Survey finds Canada’s hospitality industry has low expectations for year ahead

Almost 87 per cent of businesses in accommodation and food services report lower revenues in 2020

More than half (51.3 per cent) of Canadian business owners surveyed did not know how long they could continue to operate at their current level of revenue and expenditures before considering closure or bankruptcy.

That figure appears in a survey by Statistics Canada asking businesses about expectations moving forward and the ongoing impact of the pandemic.

The picture appears especially grim for accommodation and food services, where businesses are bracing for a tough year ahead.

The vast majority of businesses in accommodation and food services (86.4) as well as arts, entertainment and recreation (78.3 per cent) reported declining revenues in 2020 compared to the previous year and expectations for the new year are low.

RELATED: Victoria’s Empress named best historic hotel in Americas

Almost three-fifths (56.4 per cent) of businesses in accommodation and food services expected profitability would decrease over the next three months, a figure worse than the overall picture, which shows more than two-fifths (41.8 per cent) of all businesses expect decreasing profitability.

Nearly one-quarter of businesses in accommodation and food services (24.9 per cent) and arts, entertainment and recreation (23.3 per cent) said they could continue to operate at current revenue and expenditure levels for less than 12 months before having to consider closure or bankruptcy. By contrast, the overall figure for all businesses is 10.3 per cent.

While many retailers have shifted operations online to make up for lost in-person sales, this option is simply not available for hotels and many other types of businesses in those two sectors as they rely on in-person presence.

Businesses in those sectors pay special attention to government rules with many 43.6 per cent in arts, entertainment and recreation and 38.1 per cent in accommodation and food services considering government regulations an obstacle for the next three months.

On a more existential level, over two-fifths (42.5 per cent) of businesses in accommodation and food services expect that maintaining sufficient cash flow or managing debt would be an obstacle. Over half of businesses in this sector stated they do not have the ability to take on more debt (52.7 per cent).


Do you have a story tip? Email: vnc.editorial@blackpress.ca.

Follow us on Twitter and Instagram, and like us on Facebook.

wolfgang.depner@peninsulanewsreview.com

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

In a feature article published April 10, 2021 in The Times of London, ‘headlined British Columbia has what it takes to rival Napa Valley,’ the valley is praised extensively for its natural beauty and wine. (File photo)
From the U.K. with love: Okanagan wine, scenery receives international praise

The Times of London newspaper recently featured the valley in a wine and travel piece

FILE — In this March 31, 2021 file photo, a nurse fills a syringe with a dose of the Johnson & Johnson’s one-dose COVID-19 vaccine at the Vaxmobile, at the Uniondale Hempstead Senior Center, in Uniondale, N.Y. The U.S. is recommending a “pause” in administration of the single-dose Johnson & Johnson COVID-19 vaccine to investigate reports of potentially dangerous blood clots. In a joint statement Tuesday, the Centers for Disease Control and Prevention and the Food and Drug Administration said it was investigating clots in six women in the days after vaccination, in combination with reduced platelet counts. (AP Photo/Mary Altaffer, File)
72 new COVID-19 cases in Interior Health

This brings the total number of cases in the region to 9,666 since the pandemic began

Conservation officers caught three men over fishing bull trout in Kinbasket Lake. (Facebook)
B.C. men fined $1.7K for overfishing near Revelstoke, Golden

The seized fish were donated to the Golden Food Bank

Kootenay-Columbia MP Rob Morrison. Photo courtesy Conservative Party of Canada.
MP Morrison hopes for economic recovery plan in upcoming federal budget

Kootenay-Columbia Conservative looking for post-pandemic recovery plan in next week’s Liberal budget

The airport was one of several to receiving funding for its medevec services. (Columbia Valley Airport photo)
Fairmont airport receives $90,000 in Provincial funding

It’s one of several airports to receive provincial funding

Restaurant patrons enjoy the weather on a patio in Vancouver, B.C., Monday, April 5, 2021. The province has restricted indoor dining at all restaurants in B.C. due to a spike in COVID-19 numbers. THE CANADIAN PRESS/Jonathan Hayward
B.C.’s COVID-19 indoor dining, drinking ban extending into May

Restaurant association says patio rules to be clarified

Marylou Jensen. (Contributed)
Kelowna RCMP searching for missing senior

Marylou Jensen left her Grenfell Road home on foot at 5 p.m.

A dumpster was on fire behind a residential complex in downtown Penticton Tuesday afternoon. (Brennan Phillips Western News)
Dumpster fire extinguished in downtown Penticton

There has been a string of dumpster fires lately

Skogie’s Express Tunnel Wash on Anderson Way in Vernon. (Submitted photo)
Lawsuit dismissed after vehicle damaged while inside Okanagan car wash

Civil Resolution Tribunal dismisses driver’s claim following a collision inside Skogie’s car wash in Vernon

The future of the Eagle Pass Lookout cabin is being discussed. (File photo)
Options presented for future of former Eagle Pass fire lookout in Shuswap

Stakeholders met in 2020 to discuss the restoration, or possible removal of the cabin

(Mayor Cindy Fortin - Peachland)
Peachland mayor declines early vaccination offer

Mayor Cindy Fortin said she wants seniors, immunocompromised individuals to get the shot first

B.C. Premier John Horgan speaks at the B.C. legislature. (B.C. government)
Tougher COVID-19 restrictions in B.C., including travel, still ‘on the table’: Horgan

John Horgan says travel restrictions will be discussed Wednesday by the provincial cabinet

NorKam secondary student Karis Wilson in the outfit that got her sent home from school on Feb. 23, 2021. (Kamloops This Week photo)
Clothing that ‘detracts from learning process’ removed from SD73 student dress code

Policy change underway after student in knee-length dress, long-sleeve turtleneck sent home

A shop up on Grand Oro Road near Twin Lakes burned down on Monday. (Facebook)
Fire rips through shop in small South Okanagan town

The building was destroyed despite community efforts to fight the fire

Most Read