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

Sunshine Valley’s Ashley Pater appears in her new music video “Stuck on You.” Pater has been hard at work creating new music and participating in virtual events and tours. (Screenshot/Ashley Pater)
Sunshine Valley’s Ashley Pater releases new single

‘Stuck on You’ has been viewed more than 20,000 times

Chilliwack’s historic Royal Hotel is offering COVID-style wedding packages for two weeks in June. (Facebook/ Royal Hotel Chilliwack)
Chilliwack hotel offers pop-up, COVID-style weddings for 2 weeks this June

‘Weddings can still happen, albeit in a different fashion,’ says Laura Reid of Royal Hotel

Nick Warmerdam and his dog Diesel are inviting locals to check out the Lakeland Farm U-pick Flower Farm this spring. (Ben Lypka/Abbotsford News)
VIDEO & SLIDESHOW: Abbotsford’s Lakeland Flowers opens for spring

Tulip farm attraction opened on April 14, open to the public daily seven days a week

A man holds a child while speaking with RCMP following an erratic driving incident on Highway 1 in Chilliwack on Friday, April 16, 2021. The child and a woman (but not this man) were in this Jeep Grand Cherokee which hit a barrier and a parked car on Highway 1 and continued driving. The vehicle finally exited the highway at Yale Road West and came to a stop. (Jenna Hauck/ Chilliwack Progress)
Video captures woman driving erratically with child after hitting barrier, car on Hwy 1 in Chilliwack

Smoke seen coming from SUV as it continues to travel eastbound of shoulder of highway

An undated picture of the Hope Station House. (Photo/Save The Hope Station House)
Hope council must consider all options for Station House: B.C. Ombudsperson

Investigation ‘revealed flaws in District’s process,’ statement said

Rainbow trouts thrashing with life as they’re about to be transferred to the largest lake of their lives, even though it’s pretty small. These rainbows have a blue tinge because they matched the blue of their hatchery pen, but soon they’ll take on the green-browns of their new home at Lookout Lake. (Zoe Ducklow/News Staff)
VIDEO: B.C. lake stocked with hatchery trout to delight of a seniors fishing club

The Cherish Trout Scouts made plans to come back fishing soon

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

Local carpenter Tyler Bohn embarked on a quest to create the East Sooke Treehouse, after seeing people build similar structures on a Discovery Channel show. (East Sooke Treehouse Facebook photo)
PHOTOS: B.C. carpenter builds fort inspired by TV’s ‘Treehouse Masters’

The whimsical structure features a wooden walking path, a loft, kitchen – and is now listed on Airbnb

The Attorney General’s Ministry says certain disputes may now be resolved through either a tribunal or the court system, pending its appeal of a B.C. Supreme Court decision that reduced the tribunal’s jurisdiction. (AP Photo/Mark J. Terrill)
Court of Appeal grants partial stay in ruling on B.C. auto injuries

B.C. trial lawyers challenged legislation brought in to cap minor injury awards and move smaller court disputes to the Civil Resolution Tribunal

An Extinction Rebellion Vancouver Island (XRVI) climate change event in 2019 saw a large crowd occupy the Johnson Street bridge. Black Press File Photo
‘In grief for our dying world’: B.C. climate activists embark on 4-day protest

Demonstrators will walk through Vancouver for the first two days before boarding a ferry Sunday morning

Most Read