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Loonie drop benefits tourism

Strength of US dollar results in more American visitors to Powell River
Paul Kamon
HERE THEY COME: Paul Kamon, executive director of Tourism Powell River, expects a huge increase in visitors from the United States. Dave Brindle photo

The precipitous drop in the value of the loonie against the US dollar in the last two years has been a boon to Powell River tourism, according to those in the tourism and hospitality industries.

Many businesses that have seen increases to their bottom lines over the last two years because of the exchange rate are projecting an even better season ahead. That optimism is based primarily on an upward trend in the number of overnight stays; a trend in tourism that can be directly linked to the strength of the US dollar.

“Traditionally, when the Canadian dollar drops, tourism benefits. We see a huge increase in US visitors,” said Paul Kamon, executive director of Tourism Powell River.

The Canadian dollar started to plummet in 2014 because of the bottom falling out of the price of oil. As a result, the weakening of the Canadian dollar, along with the strengthening US dollar last year, led to an 11 per cent increase in the number of total visitors to Powell River, according to a statistic from Destination BC, the government crown corporation responsible for tourism.

Destination BC only reports on past data, it does not provide anything on summer projections, but some Powell River hotels are booking almost 50 per cent above last year’s increase.

“When you’re looking for tourism indicators, particularly for the Sunshine Coast, the most important one is accommodations. It’s room night bookings,” said Kamon.

Co-owner of the Old Courthouse Inn Kelly Belanger said his business is looking at a 20 per cent jump in reservations from the United States over last year.

“It’s freaking us out,” said Belanger. “It’s like, holy, we’re going to be taken over; it’s a good thing.”

While some hotels are already looking at no vacancies, other hotels won’t bet the bank yet. Beach Gardens Resort and Marina manager Joan Barszczewski is anticipating a good year, but also said “it’s still too early to say.”

Americans are the largest foreign group to visit the province on a whole, but Powell River sees tourism dollars from every corner of the globe; including Europe, Australia and increasingly from China.

The high season lasts from June through September. In 2015, the month of June recorded the biggest jump in total summer visitors, 41 per cent more than the previous year.

June is also when operators see a large influx of Europeans, according to Jan Fu, manager at Desolation Sound Resort.

“I know European bookings are higher than last year,” said Fu.

It is not only the value of the US dollar making Powell River an increasingly attractive destination for Americans. More than that, word is getting out about Sunshine Coast Trail, Desolation Sound, the sandy beaches of Savary Island, the broadening of aboriginal tourism by Tla’amin Nation, the festivals and sporting events.

Many tourists come to Powell River for the outdoor experience; kayaking, hiking, cycling and fishing.

Established tour companies like TerraCentric Coastal Adventures in Lund have seen continued growth year after year and changes from where people are coming from.

“I’m anticipating definitely a good summer, just based on the ability for Americans to travel up here cheaply,” said TerraCentric manager Christine Hollman. “It will also encourage people in Canada to travel more locally and stay regionally as well.”