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

The Quesnel RCMP Detachment is one of seven northern police buildings which can now connect directly to Prince George for daily bail hearings. (Observer File Photo)
Bail hearings going virtual in B.C.’s north

A court pilot project will see virtual courtroom cameras set up in seven RCMP detatchments

FILE – Wet’suwet’en hereditary chiefs have agreed to sign a memorandum on rights and title with B.C. and Ottawa, but elected chiefs are demanding it be called off over lack of consultation. (Thom Barker photo)
Wet’suwet’en hereditary chiefs, Lake Babine Nation get provincial funding for land, title rights

Government says it’s a new, flexible model for future agreements between Canada, B.C. and First Nations.

The property on which a residential school (pictured) that was torn down years ago in Lower Post is to be the location of a cultural centre. (Indian Residential School History and Dialogue Centre photo)
Lower Post residential school building to be demolished, replaced with cultural centre

Project to be funded by federal and provincial governments, Daylu Dena Council

The Dease Lake Airport is receiving $11-million in upgrades funded by the province, Regional District of Kitimat-Stikine and mining companies. (British Columbia Aviation Council)
Major upgrades coming to Dease Lake Airport

Airport to receive $11-million from the province, regional district and mining companies

Dianna Plouffe, right, with Mayor Gladys Atrill in front of Town Hall following the announcement she will be the new CAO> (Facebook photo)
Director of corporate services named Smithers CAO

Dianna Plouffe replaces Alan Harris who is retiring at the end of April

Vancouver resident Beryl Pye was witness to a “concerning,” spontaneous dance party that spread throughout social groups at Kitsilano Beach on April 16. (Screen grab/Beryl Pye)
VIDEO: Dance party erupts at Vancouver’s Kitsilano Beach to the dismay of onlookers

‘It was a complete disregard for current COVID-19 public health orders,’ says Vancouver resident Beryl Pye

Each spring, the Okanagan Fest-of-Ale is held in Penticton. This year, as a result of the COVID-19 pandemic, the festival will not be held. However, beer is still available. How much do you know about this beverage? (pxfuel.com)
QUIZ: How much do you really know about beer?

Put your knowledge to the test with this short quiz

Lord Tweedsmuir’s Tremmel States-Jones jumps a player and the goal line to score a touchdown against the Kelowna Owls in 2019. The face of high school football, along with a majority of other high school sports, could significantly change if a new governance proposal is passed at the B.C. School Sports AGM May 1. (Malin Jordan)
Power struggle: New governance model proposed for B.C. high school sports

Most commissions are against the new model, but B.C. School Sports (BCSS) and its board is in favour

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Pall Bearers carrying the coffin of the Duke of Edinburgh, followed by the Prince of Wales, left and Princess Anne, right, into St George’s Chapel for his funeral, at Windsor Castle, in Windsor, England, Saturday April 17, 2021. (Danny Lawson/Pool via AP)
Trudeau announces $200K donation to Duke of Edinburgh award as Prince Philip laid to rest

A tribute to the late prince’s ‘remarkable life and his selfless service,’ the Prime Minister said Saturday

B.C. homeowners are being urged to take steps to prepare for the possibility of a flood by moving equipment and other assets to higher ground. (J.R. Rardon)
‘Entire province faces risk’: B.C. citizens urged to prepare for above-average spring flooding

Larger-than-normal melting snowpack poses a threat to the province as warmer weather touches down

Vancouver-based Doubleview Gold Corp. is developing claims in an area north of Telegraph Creek that occupies an important place in Tahltan oral histories, said Chad Norman Day, president of the Tahltan Central Government. (THE CANADIAN PRESS/HO)
B.C. Indigenous nation opposes mineral exploration in culturally sensitive area

There’s “no way” the Tahltan would ever support a mine there, says Chad Norman Day, president of its central government

Stz’uminus Elder George Harris, Ladysmith Mayor Aaron Stone, and Stz’uminus Chief Roxanne Harris opened the ceremony. (Cole Schisler photo)
Symbolic red dresses rehung along B.C. highway after vandals tore them down

Leaders from Stz’uminus First Nation and the Town of Ladysmith hung new dresses on Sat. April 17

A Western toadlet crosses the centre line of Elk View Road in Chilliwack on Aug. 26, 2010. A tunnel underneath the road has since been installed to help them migrate cross the road. Saturday, April 24 is Save the Frogs Day. (Jenna Hauck/ Progress File)
Unofficial holidays: Here’s what people are celebrating for the week of April 18 to 24

Save the Frogs Day, Love Your Thighs Day and Scream Day are all coming up this week

Most Read