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As the FIFA World Cup approaches, excitement is building in both Vancouver and Toronto, where matches are set to take place from June 12 to July 7. However, many local hosts on platforms like Airbnb are finding themselves in an unexpected predicament, with a significant lack of bookings for the tournament. Despite the anticipation of an influx of fans seeking accommodations, numerous short-term rental owners are grappling with the harsh reality of vacant properties.
Empty Promises for Short-term Hosts
May Chu, a seasoned Airbnb host in Vancouver, has seen her two-bedroom ground-level suite go unbooked during a period that she expected would be bustling with guests. “It is incredibly strange how there are no bookings,” she expressed, recalling a time when her pricing software predicted nightly rates of up to £1,600. Despite lowering her rates to a more modest £440, Ms. Chu has yet to receive any interest for the critical June dates, a sharp contrast to her previous experiences where her suite was consistently occupied.
Similarly, Shelby Lim, who operates a condo near BC Place stadium, is perplexed by the lack of demand. “I have bookings all the way up to the day before FIFA starts. Then, I start being booked solid again in July,” she noted. Lim had hoped to charge between £800 to £1,200 a night during the World Cup but is now compelled to lower her expectations significantly due to minimal interest.
The Ripple Effects in Toronto
In Toronto, the situation mirrors that of Vancouver. Matthew Collins, a first-time Airbnb host in the Mimico neighbourhood, had high hopes for the tournament. He envisioned using the revenue from renting out his one-bedroom apartment to fund a staycation. Unfortunately, his optimism has been met with disappointment as he struggles to attract bookings, even with competitive pricing. Adding to his woes is a municipal fee of £300 required for short-term rental registration, further complicating his financial calculations.
Airbnb recently announced a £800 incentive for property owners in World Cup host cities, aiming to encourage listings ahead of the event. Despite this, local representatives report a staggering percentage of listings remaining available, with around 80% in Toronto and 70% in Vancouver priced below £400 per night.
Hotels Also Feeling the Pinch
The challenges facing short-term rental hosts are not isolated. Hotels in both cities are also experiencing lower than expected bookings. According to Destination Vancouver, hotel occupancy is down 20% compared to last year for June. CEO Royce Chwin remains hopeful, anticipating an uptick in reservations as the tournament date draws near. However, the current figures fall short of the demand witnessed during other major events, such as the Taylor Swift concerts last December.
For context, hotel prices soared during the Eras Tour, with rooms in downtown Vancouver reaching rates of £800 per night. In contrast, the average cost for a hotel room during the World Cup is estimated to be between £500 to £600, leaving many industry experts scratching their heads over the apparent lack of interest.
Factors Behind the Booking Drought
Several factors contribute to the subdued demand for accommodations during the World Cup. One significant challenge is the behaviour of fans, many of whom may opt to travel to various locations to follow their teams rather than stay in one city. This trend was noted by Chwin, who explained that the audience is likely to disperse to match venues rather than remain in Vancouver for the duration of the tournament.
In Toronto, Sara Anghel, president of the Greater Toronto Hotel Association, pointed to the unexpected cancellation of hotel bookings by FIFA officials as a key issue, exacerbating an already soft demand. Additionally, other major conferences and events have shifted schedules to accommodate the World Cup, further complicating the landscape for local hosts and hoteliers alike.
Why it Matters
The hosting of the FIFA World Cup represents a significant opportunity for cities like Vancouver and Toronto, not just in terms of immediate economic benefits but also for long-term tourism prospects. However, the unexpected downturn in bookings for both short-term rentals and hotels raises serious questions about the preparedness and appeal of these cities as global destinations. As hosts face the prospect of empty properties and lost revenue, the wider implications of this situation may impact not just the local economy but also the long-term perceptions of these regions as viable hosts for international events.
