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As anticipation builds for the FIFA World Cup, with matches scheduled in Vancouver and Toronto from June 12 to July 7, many accommodation hosts are grappling with an unexpected reality: a significant lack of bookings. Despite forecasts predicting an influx of hundreds of thousands of fans, many property owners are left bewildered as their listings gather dust.
Unmet Expectations for Hosts
May Chu, who has been renting her two-bedroom suite in Vancouver for three years, is experiencing a stark contrast to previous years. “It is incredibly strange how there are no bookings,” she remarked, noting that her pricing software initially suggested a nightly rate of £2,000 for the event. However, as the tournament approaches, her rates have plummeted, yet interest remains non-existent. Chu has set a moderate price of £440 per night, but still finds her property unbooked during a peak time that previously guaranteed steady income.
Similarly, Shelby Lim, who owns a condo in close proximity to BC Place stadium, also expressed confusion over the current lack of interest. “I have bookings all the way up to the day before FIFA starts. Then, I start being booked solid again in July,” she explained. Lim had hoped to command between £1,000 and £1,500 per night for her unit during the World Cup but is now reluctantly offering it for less than £500. “I spent quite a bit of money upgrading. I am going to be losing money at this point,” she lamented.
A Flooded Market
Toronto hosts are echoing similar sentiments. Matthew Collins, a newcomer to the Airbnb landscape, anticipated an influx of guests keen to stay in his one-bedroom apartment near BMO Field. Listing his space just weeks ago, Collins expected to capitalise on the World Cup buzz. However, he has faced disappointing results, with minimal inquiries despite his competitive rates. “I think the market’s just flooded,” he commented, especially in light of the hefty £390 municipal fee associated with short-term rental registration.
In an effort to stimulate listings, Airbnb announced a £1,000 incentive for hosts in World Cup cities who secured bookings prior to July 31. Since October, approximately 4,000 new hosts have registered in Vancouver and Toronto. However, according to Matt McNama, a spokesperson for Airbnb in Canada, around 80 per cent of Toronto listings and 70 per cent of Vancouver listings remain available and priced below £500 a night.
Hotel Industry Feeling the Pinch
The struggles are not exclusive to short-term rentals. Hotels in both cities are witnessing a concerning trend of vacancies as well. Destination Vancouver reports a 20 per cent decline in hotel bookings for June compared to the previous year. Chief Executive Royce Chwin acknowledges the slower-than-expected pace but remains optimistic, anticipating an uptick in reservations as the tournament approaches. Despite this optimism, current demand pales in comparison to the frenzy observed during the final shows of Taylor Swift’s Eras Tour, which saw hotel prices soar.
While hotel prices for downtown rooms on the day of Vancouver’s first match average between £600 and £800, this is still a far cry from the £1,000 prices observed during Swift’s concerts. Chwin suggests that many fans may not be inclined to stay in one city throughout the tournament, as they are likely to follow their teams across various locations.
External Factors Impacting Bookings
Sara Anghel, CEO of the Greater Toronto Hotel Association, acknowledged the “softer demand for room nights during the games than anticipated.” She attributes this unexpected downturn partly to FIFA officials’ last-minute cancellations of hotel bookings and the rescheduling of conferences and events coinciding with the World Cup.
Andrew Weir, CEO of Destination Toronto, encourages a broader perspective on the event’s impact. “FIFA hosting this event is just an enormous opportunity for our city,” he stated, suggesting that while immediate bookings may be sluggish, the long-term benefits of hosting such a prestigious tournament could be substantial.
Why it Matters
The current accommodation crisis surrounding the FIFA World Cup in Vancouver and Toronto highlights a significant disconnect between expectations and reality in the hospitality sector. As hosts grapple with unexpected vacancies, the economic implications ripple through local communities, potentially dampening the anticipated influx of revenue from one of the world’s most-watched sporting events. The situation serves as a crucial reminder of the complexities within the tourism and rental markets and the need for strategic planning and adaptability in the face of evolving circumstances.
