As the countdown to the FIFA World Cup begins, anticipation is building across Canada, particularly in Vancouver and Toronto, where matches will be held from June 12 through July 7. With the influx of fans expected to fill the cities, short-term rental hosts had hoped to capitalise on the excitement. However, many are finding their properties largely overlooked, resulting in an unexpected downturn for those anticipating a financial boon.
Short-Term Rental Hosts Left Disappointed
For many Airbnb hosts, the impending World Cup was seen as an opportunity to cash in on the anticipated flood of visitors. Yet, as the event approaches, it appears that the reality is far from the expectations. May Chu, who has been renting her two-bedroom suite in Vancouver for three years, expressed her disbelief at the lack of interest. “It is incredibly strange how there are no bookings. Back in December, my pricing software estimated $2,000 per night. Now, it keeps going down,” she lamented. Despite her moderate pricing of £440 per night, her suite remains vacant, which is a stark contrast to the usual demand she experiences during this time.
Similarly, Shelby Lim, who owns a condo close to BC Place stadium, is baffled by the absence of bookings. “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 £1,000 and £1,500 a night during the World Cup but is now renting for less than £500, leading her to fear financial losses.
Toronto Hosts Face Similar Challenges
In Toronto, the story is much the same. Matthew Collins, a new Airbnb host in the Mimico neighbourhood, listed his one-bedroom apartment just steps from BMO Field, expecting a bustling demand. However, he, too, has faced disappointing results. “My rates are below what seems to be competitive. I think the market’s just flooded,” he said, highlighting the additional burden of a £390 municipal registration fee that all short-term rental hosts must pay.
In an effort to encourage listings, Airbnb recently announced a £1,000 incentive for North American hosts in World Cup cities who secured bookings before the end of July. The company reported a surge of approximately 4,000 new hosts registering in Vancouver and Toronto since October. Yet, according to Matt McNama, a spokesperson for Airbnb Canada, around 80% of listings in Toronto and 70% in Vancouver are still available at prices below £500 a night.
Hotels Also Struggle with Vacancies
The challenges facing short-term rentals are mirrored in the hotel industry. Destination Vancouver reported a 20% decline in hotel bookings compared to the previous year, with many properties struggling to fill rooms. CEO Royce Chwin acknowledged the slower-than-expected demand but expressed optimism for an increase in reservations as the tournament draws nearer. “It is a little slower than expected, but we are starting to see a little bit of pickup,” he stated.
However, the current demand is nowhere near that of past events, such as Taylor Swift’s Eras Tour, which saw hotel prices soar to £1,000 a night for prime downtown locations. According to Expedia, average room rates for the World Cup are ranging from £600 to £800, suggesting that many fans may not be staying in Vancouver throughout the tournament. Chwin pointed out that supporters are likely to follow their teams to various locations, further complicating the local accommodation landscape.
The Broader Picture: Impacts of Cancellations
Sara Anghel, president of the Greater Toronto Hotel Association, noted a “softer demand for room nights during the games than anticipated,” attributing this to FIFA’s cancellation of numerous hotel bookings, as well as rescheduling of conferences and events in light of the World Cup. Andrew Weir, CEO of Destination Toronto, believes it is crucial to view the event from both short-term and long-term perspectives. “FIFA hosting this event is just an enormous opportunity for our city,” he asserted, while acknowledging the uncertainty surrounding whether this World Cup will surpass previous June demand.
As the matches draw closer, the situation remains fluid, with many hoping for a last-minute surge in bookings.
Why it Matters
The disappointment among accommodation hosts in Vancouver and Toronto reflects a broader narrative about the economic impact of major sporting events. While the potential for financial gain looms large, the reality often involves complex market dynamics that can leave many in the local hospitality sector grappling with unexpected vacancies. The World Cup is not just a sporting event; it represents a unique opportunity for cities to showcase their culture and hospitality. How well they manage this moment could have lasting implications for their economies and reputations on the world stage.