Victoria’s Fairmont Empress hotel closed for three months in late 2020, early 2021, to undergo renovations in leveraging slower hotel traffic because of COVID-19 restrictions. A new report from Statistics Canada find many businesses in the accommodation and food services sector are bracing for another tough year. (Courtesy of Fairmont Empress hotel)

Victoria’s Fairmont Empress hotel closed for three months in late 2020, early 2021, to undergo renovations in leveraging slower hotel traffic because of COVID-19 restrictions. A new report from Statistics Canada find many businesses in the accommodation and food services sector are bracing for another tough year. (Courtesy of Fairmont Empress hotel)

Survey finds Canada’s hospitality industry has low expectations for year ahead

Almost 87 per cent of businesses in accommodation and food services report lower revenues in 2020

More than half (51.3 per cent) of Canadian business owners surveyed did not know how long they could continue to operate at their current level of revenue and expenditures before considering closure or bankruptcy.

That figure appears in a survey by Statistics Canada asking businesses about expectations moving forward and the ongoing impact of the pandemic.

The picture appears especially grim for accommodation and food services, where businesses are bracing for a tough year ahead.

The vast majority of businesses in accommodation and food services (86.4) as well as arts, entertainment and recreation (78.3 per cent) reported declining revenues in 2020 compared to the previous year and expectations for the new year are low.

RELATED: Victoria’s Empress named best historic hotel in Americas

Almost three-fifths (56.4 per cent) of businesses in accommodation and food services expected profitability would decrease over the next three months, a figure worse than the overall picture, which shows more than two-fifths (41.8 per cent) of all businesses expect decreasing profitability.

Nearly one-quarter of businesses in accommodation and food services (24.9 per cent) and arts, entertainment and recreation (23.3 per cent) said they could continue to operate at current revenue and expenditure levels for less than 12 months before having to consider closure or bankruptcy. By contrast, the overall figure for all businesses is 10.3 per cent.

While many retailers have shifted operations online to make up for lost in-person sales, this option is simply not available for hotels and many other types of businesses in those two sectors as they rely on in-person presence.

Businesses in those sectors pay special attention to government rules with many 43.6 per cent in arts, entertainment and recreation and 38.1 per cent in accommodation and food services considering government regulations an obstacle for the next three months.

On a more existential level, over two-fifths (42.5 per cent) of businesses in accommodation and food services expect that maintaining sufficient cash flow or managing debt would be an obstacle. Over half of businesses in this sector stated they do not have the ability to take on more debt (52.7 per cent).


Do you have a story tip? Email: vnc.editorial@blackpress.ca.

Follow us on Twitter and Instagram, and like us on Facebook.

wolfgang.depner@peninsulanewsreview.com

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Photo: pixabay.com
Morning Start: Why do dogs like squeaky toys?

Your morning start for Tuesday, April 20, 2021

People are shown at a COVID-19 vaccination site in Montreal, Sunday, April 18, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
211 new COVID-19 cases in Interior Health over the weekend

Currently, there are 875 active cases of the virus in the region

A nurse prepares a dose of the COVID-19 vaccine in Kelowna on Tuesday, March 16. As of April 19, more than 230,000 doses have been administered across the Interior Health region. (Phil McLachlan/Black Press)
More than 230K doses of COVID-19 vaccine administered across Interior Health

A total of 220,216 first doses and 13,775 second doses have been given to residents across the B.C. Interior

A new non-profit after school program starts in Revelstoke. The Revelstoke Afterschool Society focuses on spending time outside. school (Liam Harrap/Revelstoke Review)
Columbia Basin Trust doles out funds for child care providers

Sixteen Revelstoke providers received money

In this image from NASA, NASA’s experimental Mars helicopter Ingenuity lands on the surface of Mars Monday, April 19, 2021. The little 4-pound helicopter rose from the dusty red surface into the thin Martian air Monday, achieving the first powered, controlled flight on another planet. (NASA via AP)
VIDEO: NASA’s Mars helicopter takes flight, 1st for another planet

The $85 million helicopter demo was considered high risk, yet high reward

University of Victoria rowing coach Barney Williams is photographed in the stands during the Greater Victoria Invitational at CARSA Performance Gym at the University of Victoria in Victoria, B.C., on Friday, November 29, 2019. The University of Victoria says Williams has resigned effective immediately. (THE CANADIAN PRESS/Chad Hipolito)
University of Victoria women’s rowing coach resigns by mutual agreement

Lawsuit filed last summer accused Barney Williams of verbal abuse

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Former B.C. premier Christy Clark. (Black Press Media files)
Former B.C. premier to testify at money laundering hearing today

Attorney General David Eby has been added to the witness list as well

Selina Robinson is shown in Coquitlam, B.C., on Friday November 17, 2017. British Columbia’s finance minister says her professional training as a family therapist helped her develop the New Democrat government’s first budget during the COVID-19 pandemic, which she will table Tuesday. THE CANADIAN PRESS/Darryl Dyck
B.C. to table budget that’s expected to deal with COVID-19 pandemic and beyond

Robinson released a fiscal update last December that said the impact of the pandemic on B.C.’s economy was uncertain

Paramedic Matthew Schlatter of Victoria is living a fuller life today due to the double lung transplant he received in 2019. He encourages B.C. residents to register as an organ donor and let their families know their wishes. (Instagram/Matthew Schlatter)
B.C. man living a full, active life after double-lung transplant

Matt Schlatter encourages people to register as an organ donor to help others live

(Photo by Mojpe/Pixabay)
Canadian kids extracting record amounts from Tooth Fairy

Our neighbours in the U.S. receive slightly less from Tooth Fairy visits

A strange odour at a West Kelowna apartment building prompted the evacuation of 150 residents on Sunday morning, April 18. (Aaron Hemens - Capital News)
‘Do not occupy’ order lifted, residents of West Kelowna apartment allowed to return home

The building was evacuated early Sunday morning due to a strange smell

Most Read