Canada -  Victoria

VICTORIA, the capital of British Columbia, is heavily reliant on the public sector, which supports one-third of jobs in the region and contributes to one-fourth of economic activity. The economy is nevertheless well diversified, supported by the manufacturing and high-tech sectors, as well as the tourism industry. From 2007 to 2009, tourism was negatively affected by travel restrictions and new formalities regarding US passports—a passport became mandatory for all US citizens coming to Canada. The Victoria market was also negatively affected in 2010 when Vancouver hosted the Olympic Games and finished the expansion of its convention centre.

After average annual GDP growth of only 1.1% between 2010 and 2014, the economy strengthened in 2015 thanks to an increase in air capacity, the weakening of the Canadian dollar, and the elimination of visa requirements for Mexican travellers.

Since 2015, the market-wide ADR has been increasing at a strong pace. The strongest increase of 11.0% was registered in 2018. The strong rate growth has had no negative effect on the occupancy performance, as demand has remained flat while the room supply has decreased. The 180-room Harbour Towers Hotel closed in late 2017, and no new supply is expected to enter the market to compensate for the loss of rooms over the rest of the period until 2021. Demand growth is also expected to be flat for the next three years. In this context, the occupancy is expected to remain stable and the RevPAR is projected to increase, supported by rising room rates. In 2021, the market-wide RevPAR is projected to be at the highest level since 2005.

The outlook is positive for this market. The per-room value is estimated to be $184,563 in 2018, and it is projected to reach $273,346 in 2021. Since 2013, the market has sustained value growth of roughly 10% per year, aside from stronger growth of 16.0% in 2016, and much stronger growth of 20.8% is projected for 2018. The index is expected to rise above 2 in 2019, meaning that a hotel room in Victoria will be worth more than twice as much as a hotel room in Canada was worth in 2005. The Victoria market is projected to have the fourth-highest per-room value in the rankings in 2021, up two places from 2017.

Change In Value For Market: ($CAD)

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Victoria RevPAR Change ($CAD)

Victoria RevPAR ($CAD)

Year RevPAR
2006 $84.94
2007 $91.44
2008 $87.64
2009 $78.66
2010 $76.15
2011 $75.30
2012 $73.62
2013 $80.76
2014 $88.98
2015 $96.83
2016 $107.22
2017 $116.65
2018 (f) $133.22
2019 (f) $141.21
2020 (f) $146.86
2021 (f) $151.26

For more information, please contact:

Carrie Russell, AACI, MAI, RIBC, ISHC
[email protected]
  • +1 604 988-9743 (w)