As excitement builds for the upcoming FIFA World Cup, with matches scheduled in both Vancouver and Toronto, many local hosts were anticipating a rental windfall. However, contrary to expectations, short-term rental bookings have failed to materialise, leaving numerous property owners perplexed and concerned.
Unforeseen Booking Drought
From June 13 to July 7, Vancouver will host seven World Cup matches, while Toronto will see six matches from June 12 to July 2. Despite the influx of fans expected to flood these cities, local Airbnb hosts are reporting a surprising lack of interest in their properties. May Chu, who has been renting out her two-bedroom suite in Vancouver for three years, expressed her disbelief at receiving no bookings for the World Cup period. “It’s incredibly strange how there are no reservations. My pricing software had estimated $2,000 per night back in December, but now it keeps dropping,” she stated, noting her current rate of £440 per night.
This stark contrast to past June bookings has left Chu puzzled. In previous years, her suite was consistently filled throughout the month, but this time, even with a competitive price, she finds her property empty. Similarly, Shelby Lim, another Vancouver host whose condo is near BC Place stadium, has seen a drop in interest. “I was fully booked leading up to the World Cup and expect to be booked again in July, but right now, I’m at a loss,” she said. Lim had hoped to charge between £800 and £1,200 per night for her unit during the tournament but is now struggling to attract guests even at a lower price point.
Similar Trends in Toronto
Toronto hosts are experiencing a parallel predicament. Matthew Collins, a first-time Airbnb host in the city’s Mimico neighbourhood, recently listed his one-bedroom apartment just a short walk from BMO Field. However, his hopes of a lucrative staycation through World Cup rentals have fizzled out, with minimal interest thus far. Collins expressed disappointment over the £390 registration fee he incurred to list his property, remarking, “My rates are competitive, yet the market seems flooded.”
In February, Airbnb introduced a £1,000 incentive for North American hosts in World Cup cities to encourage listings, which has led to approximately 4,000 new properties being registered in Vancouver and Toronto since October. Matt McNama, a spokesperson for Airbnb Canada, highlighted that about 70 per cent of listings in Vancouver and 80 per cent in Toronto remain available and are priced under £500 a night.
Hotel Industry Faces Challenges
The situation is not confined to short-term rentals; hotels in both cities are also reporting vacancies. According to Destination Vancouver, hotel bookings are down by 20 per cent compared to the same time last year. CEO Royce Chwin believes that while bookings are slower than anticipated, he expects a surge in reservations as the tournament draws nearer. He remarked, “It’s a little slower than expected, but we are starting to see a bit of a pickup.”
In contrast to the high demand during major events like Taylor Swift’s Eras Tour, hotel room prices for the World Cup have not seen the same spike. For example, downtown hotel rates for the opening match on June 13 are averaging between £600 and £800, significantly lower than the inflated prices during Swift’s concerts, where rooms were going for as much as £1,000.
Impact of FIFA on Local Tourism
The softer demand for accommodations has been attributed to various factors. Sara Anghel, president of the Greater Toronto Hotel Association, noted that FIFA’s decision to cancel thousands of hotel bookings in the city has contributed to the decline in reservations. Additionally, the scheduling of conferences and other events has also influenced the availability of hotel rooms during the World Cup.
Andrew Weir, CEO of Destination Toronto, urged a broader perspective on the World Cup’s impact, emphasising its potential long-term benefits for the city. “FIFA hosting this event is an enormous opportunity for our city. While we may not surpass previous Junes in terms of bookings, there is still a significant amount of activity we expect to fill in,” he asserted.
Why it Matters
The current booking struggles faced by hosts and hotels during a globally anticipated event like the FIFA World Cup highlight underlying market dynamics and the unpredictability of tourism trends. While the immediate outlook may appear bleak, this situation serves as a reminder of the complex interplay between major sporting events and local economies. The way these cities adapt and respond in the coming weeks could shape their tourism landscapes for years to come, making it crucial for stakeholders to continue evaluating their strategies and offerings.
