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As the FIFA World Cup approaches, excitement is palpable in Vancouver and Toronto, with both cities set to host a significant number of matches. However, contrary to expectations, many short-term rental hosts are facing a lack of bookings, raising concerns about the economic impact of this global event. With hundreds of thousands of fans anticipated to arrive, the reality on the ground is proving far less promising for local hosts.
Booking Blues for Hosts
The FIFA World Cup is traditionally seen as a boon for local businesses, particularly those in the hospitality sector. Yet, for some Airbnb hosts, the anticipated influx of visitors is not translating into bookings. May Chu, who has been an Airbnb host in Vancouver for three years, has found herself in an unprecedented situation—her two-bedroom suite remains completely unbooked during the tournament, despite a competitive rate of £440 per night.
“Back in December, my pricing software predicted I could charge £2,000 a night,” she shared, illustrating the stark contrast between expectations and current reality. “Now, I’m struggling to find even a single guest.”
Similar sentiments are echoed by Shelby Lim, who owns a condo near BC Place stadium. She had hoped to capitalise on the World Cup by offering her space at a rate of £1,000 to £1,500 per night but now finds herself renting it for less than £500. “I spent quite a bit on upgrades, and at this rate, I’m going to incur losses,” she lamented.
Toronto Hosts Face Similar Challenges
The situation in Toronto mirrors that of Vancouver, with many hosts experiencing a frustrating lack of interest. Matthew Collins, a first-time Airbnb host in the city’s Mimico neighbourhood, listed his one-bedroom apartment just steps from BMO Field weeks ago but has yet to secure a booking.
He noted the added burden of a £390 municipal fee required for short-term rental registration, which only compounds his disappointment. “My rates are below market, but it seems like the market is flooded,” he remarked, voicing concerns shared by many landlords looking to benefit from the event.
Wider Economic Implications
The challenges facing short-term rentals extend beyond individual hosts. The hotel sector is also seeing a drop in reservations. According to Destination Vancouver, hotel bookings are down by 20% this June compared to last year. CEO Royce Chwin remains hopeful, stating, “While it is slower than expected, we are starting to see some pick-up.” However, with less than two weeks until the World Cup kicks off, hotel occupancy remains far from the levels seen during other major events, such as the recent Taylor Swift concerts where room rates soared.
Chwin attributes part of the sluggish demand to the nature of the World Cup audience, which may not feel inclined to stay in one city for the duration of the tournament. “Fans tend to follow their teams, potentially flying to various locations,” he explained.
The Impact of FIFA’s Decisions
Compounding the issue for Toronto is the cancellation of numerous hotel bookings by FIFA officials ahead of the tournament. Sara Anghel, CEO of the Greater Toronto Hotel Association, acknowledged the “softer demand” for accommodations and linked it to these cancellations, alongside other events rescheduling around the World Cup.
Andrew Weir, president of Destination Toronto, emphasised the need to view the World Cup as both a short-term challenge and a long-term opportunity. “Hosting such a significant event is a tremendous opportunity for our city,” he said, stressing that while immediate figures may be disappointing, the overall potential for tourism and local business growth is substantial.
Why it Matters
The struggles of accommodation providers ahead of the FIFA World Cup illustrate a broader trend in the hospitality sector, signalling potential challenges for cities relying on major events to boost their economies. As local hosts navigate a landscape marked by unexpected vacancies, the implications extend beyond individual financial losses; they reflect a need for better planning and alignment of expectations within the tourism and hospitality industries. The World Cup could serve as a vital catalyst for growth and visibility, but only if stakeholders can adapt to the realities of an evolving market.