Province says World Cup is boosting B.C. economy, but some businesses report softer demand

Restaurants near fan zones report strong sales as some hotels say the expected World Cup surge never arrived

With two FIFA World Cup matches left to play at Vancouver's B.C. Place, the province is touting the economic benefits of hosting the games, but some local businesses say the boost has been uneven.

At a news conference on Granville Island on Monday, B.C. Tourism Minister Anne Kang said the tournament has brought immediate benefits to bars, restaurants, retailers and communities across the province.

"Right now people are packing local bars and restaurants, not just in Vancouver, but throughout British Columbia," Kang said. "We know that thousands of people are walking in their neighbourhoods and taking public transit, adding to the foot traffic that retail stores rely on."

The province says more than 330,000 people attended the FIFA Fan Festival in Vancouver between June 11 and 28.

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It says businesses throughout Vancouver are seeing significant increases in sales, particularly on match days, with some restaurants and bars reporting increases as high as 40 per cent.

Ian Tostenson, president of the B.C. Restaurant and Foodservices Association, said he is hearing the same thing from many restaurants, especially those concentrated around the Granville Street pedestrian zone and fan areas.

"We've heard of sales even doubled," Tostenson said. "The incredible intensity of [the games] is just great. It brings people out and puts them in a good mood … so it has been a real boost."

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Still, Tostenson says restaurants outside the busy areas have had to draw fans through special menus or promotions.

"If you're in the fringes, then you have to work at it harder," he said. "But the business is still there and so many people are out all over the place."

Tostenson said some restaurants outside the downtown core are also seeing business from visitors staying in Airbnbs across the region.

Some businesses 'unbelievably quiet'

On Granville Island, where a World Cup watch party has been set up, some merchants say the crowds have not translated into spending at their shops.

Hilary Morris, a local artist who runs Beaver Pond Creative next to the fan zone, said this is normally one of the busiest times of year on Granville Island, but the past few weeks have been "unbelievably quiet."

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"What I didn't expect to happen was that people who shop at Granville Island regularly would avoid the place like the plague, which appears to be the case," she said.

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Before the World Cup, industry groups and hotel developers warned Vancouver could face a shortage of hotel rooms during the tournament.

The British Columbia Hotel Association has blamed flawed "messaging" for vacancies heading into the World Cup that left tourists with the false impression no rooms were available.

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Rhian Charette, general manager at Hostelling International Canada's downtown and Jericho Beach locations, which cater to budget travellers, said demand has been far below normal.

"Typically we find ourselves at about 90-92 per cent at this time of the year," she said. "We are really struggling to reach about half of that this year."

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Charette said budget travellers may have decided to avoid Vancouver during the tournament because of high costs.

Bek Shamsiev, general manager of AZUR Legacy Collection Hotel, said his luxury hotel is also about 20 to 25 per cent behind its normal June occupancy.

He said part of the reason is because this World Cup is being hosted across three countries and 16 cities.

"So the business or the volume of the business is diluted," he said.

Kang said the province has heard that many soccer fans are behaving differently than expected and are instead staying with friends and family, in RVs or at campsites.

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Asked whether the government overpromised the tournament's economic impact, Kang said hosting the World Cup is part of a longer-term tourism strategy with the province expecting returns in the years ahead.

She said over the five years following the tournament, B.C. is expected to benefit from an estimated one million additional out-of-province visitors and more than $1 billion in additional visitor spending.

With files from The Early Edition, On The Coast and The Canadian Press