As the FIFA World Cup draws near, excitement is palpable across Canada, particularly in Toronto and Vancouver, which are set to host a total of 13 matches between June 12 and July 7. However, contrary to expectations of a bustling tourism boom, many short-term rental hosts are reporting a surprising lack of bookings, raising questions about the anticipated influx of football fans.
A Surprising Lack of Demand
May Chu, who has been an Airbnb host in Vancouver for three years, expressed her bewilderment at the lack of reservations during such a significant event. Despite her two-bedroom suite typically being fully booked in June, she has received no inquiries for the World Cup period. “It is incredibly strange how there are no bookings. Back in December, my pricing software was estimating $2,000 per night. Then, it keeps going down,” she remarked.
The situation is similarly concerning for other local hosts. Shelby Lim, who owns a condo near BC Place stadium, has seen her rental bookings dry up just as the tournament approaches. “I have bookings all the way up to the day before FIFA starts. Then, I start being booked solid again in July,” she noted, adding that she had hoped to charge between £1,000 and £1,500 per night during the World Cup but is now renting for less than £500.
Toronto Hosts Face Similar Challenges
In Toronto, hosts are grappling with a similar scenario. Matthew Collins, a first-time Airbnb lister in the Mimico neighbourhood, anticipated his one-bedroom apartment would attract significant interest due to its proximity to BMO Field. However, after listing his property three weeks ago, he has found the market unresponsive. “My rates are below what seems to be competitive. I think the market’s just flooded,” Collins shared, noting the additional burden of a £390 municipal fee for short-term rental registration.
Airbnb had previously incentivised hosts to list their properties in World Cup cities, offering a £1,000 reward for bookings secured before July 31. Despite this, Matt McNama, a spokesperson for Airbnb in Canada, revealed that around 80 per cent of listings in Toronto and 70 per cent in Vancouver remain available at rates under £500 a night.
Hotels Also Feeling the Pinch
The struggles are not confined to short-term rentals; hotels in both cities are also reporting vacancies. Destination Vancouver indicated that hotel bookings have decreased by 20 per cent compared to last year. CEO Royce Chwin acknowledged that while initial reservations have been slower than anticipated, he remains hopeful for an uptick in the coming weeks. “It is a little slower than expected, but we are starting to see a little bit of pickup,” he stated.
Chwin pointed out that many tourists may choose to travel to different locations following their teams, rather than staying in one city for the duration of the tournament. This sentiment echoes the experience of last year’s Taylor Swift concerts, where hotel prices spiked dramatically due to overwhelming demand.
Sara Anghel, CEO of the Greater Toronto Hotel Association, noted a “softer demand for room nights during the games than anticipated.” She attributed this trend partly to FIFA officials previously booking and then cancelling hotel rooms, alongside rescheduling of conferences and events due to the World Cup.
A Long-Term Perspective on Opportunity
Andrew Weir, CEO of Destination Toronto, emphasised the importance of viewing the World Cup through both immediate and long-term lenses. “FIFA hosting this event is just an enormous opportunity for our city,” he stated, recognising the potential for future tourism growth. While current figures may not surpass previous years, there remains optimism that the tournament will bring lasting benefits to the region.
Why it Matters
The unexpected lack of bookings for accommodations during the FIFA World Cup highlights a disconnect between major sporting events and the anticipated economic boost for host cities. As short-term rentals and hotels grapple with lower-than-expected demand, it raises questions about how future events will be marketed to attract tourists. Understanding these dynamics is crucial for local economies that rely on tourism, especially during global spectacles that could otherwise bring significant financial gains.
