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As the FIFA World Cup looms on the horizon, hosting cities Vancouver and Toronto are experiencing an unexpected downturn in accommodation bookings. In a surprising twist, many short-term rental hosts are grappling with vacancies, despite a flood of football fans anticipated to descend upon both cities. With the tournament set to kick off, these hosts are left wondering why their properties have not been snatched up as expected.
A Surprising Vacancy Crisis
Between June 13 and July 7, Vancouver will host seven World Cup matches, while Toronto will welcome six matches from June 12 to July 2. Many property owners anticipated a booming market for short-term rentals, urging them to list their accommodations on platforms such as Airbnb. However, the reality has been starkly different. May Chu, an Airbnb host in Vancouver for three years, expressed her disbelief at receiving no reservations during the tournament period. “It is incredibly strange how there are no bookings,” she remarked, noting that her pricing software had previously predicted nightly rates of up to £1,600. Now, with a modest price tag of approximately £440, she remains empty-handed.
The situation is similarly perplexing for other hosts. Shelby Lim, who manages a condo near the bustling BC Place stadium, shared her frustrations. “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 charge between £800 and £1,200 per night during the World Cup, but her current rate is less than £500, leaving her with a substantial financial loss looming.
The Flooded Market
Hosts in Toronto are echoing similar concerns. Matthew Collins, a resident from the Mimico neighbourhood, recently listed his one-bedroom apartment just steps from BMO Field, but he has seen little interest. With a municipal fee of £300 to register as a short-term rental host, Collins is disheartened. “My rates are below what seems to be competitive,” he stated, suggesting that the market may simply be oversaturated with options.
In a bid to stimulate interest, Airbnb announced an incentive programme offering up to £800 for property owners in World Cup host cities who secure bookings by July 31. Despite this effort, the reality remains stark: approximately 80% of listings in Toronto and 70% in Vancouver are still available and priced under £500 a night, according to Airbnb spokesperson Matt McNama.
Hotels Feel the Pinch
The challenges are not confined to Airbnb hosts. Hotels in both cities are also struggling with lower than expected occupancy rates. Destination Vancouver reported a 20% drop in hotel bookings for June compared to the previous year. CEO Royce Chwin expressed cautious optimism, suggesting that while the initial response has been slower than anticipated, he expects an uptick in reservations as the tournament approaches.
In stark contrast, during the last major event in Vancouver—the final shows of Taylor Swift’s Eras Tour—hotel bookings surged, with some rooms going for £800 a night, compared to current averages of £500-£700 for the World Cup. Chwin pointed out that many fans might be travelling to follow their teams rather than staying put in one city throughout the tournament, complicating the demand for accommodations.
Factors Behind the Decline
Sara Anghel, CEO of the Greater Toronto Hotel Association, acknowledged the weaker demand for hotel rooms during the World Cup, attributing this to several factors. Notably, FIFA officials had previously booked and then cancelled numerous hotel rooms in the city, while other conferences and events were rescheduled around the tournament dates, further complicating the landscape for potential guests.
Andrew Weir, CEO of Destination Toronto, emphasised the importance of viewing the World Cup through both immediate and long-term perspectives. “FIFA hosting this event is just an enormous opportunity for our city,” he stated, suggesting that while current figures may not meet expectations, the long-term benefits of global exposure could be substantial.
Why it Matters
The unexpected downturn in bookings for short-term rentals and hotels during the FIFA World Cup raises critical questions about the dynamics of tourism in major events. While the tournament promises to showcase Toronto and Vancouver on a global stage, the current vacancy crisis signals deeper issues within the hospitality sector and highlights the need for adaptive strategies in an increasingly competitive market. As cities navigate the fallout from these vacancies, the lessons learned could shape the future of tourism and event hosting in Canada.
