Tariff turmoil with the U.S. has done little to slow American visits to Victoria, but a surge of nationalism and a weak Canadian dollar are keeping Canadians close to home.
Ryan Burles, president of Black Ball, which operates the Coho vehicle ferry between Victoria and Port Angeles, Washington, said fewer Canadians are getting on the boat.
He estimates American travel numbers to Victoria are up a bit this year, but overall, the company is down 15 per cent because of snowbirds staying in Canada and fewer leisure travellers heading south.
Mark Collins, chief executive of FRS Clipper, which operates passenger ferry service between Victoria and Seattle, said the first few weeks of the season have been a challenge.
The Clipper, which has only been in service three or four days a week for the last month after being in drydock in January and February, said so far, Victoria-originating traffic is down about 30 per cent from the same period last year, while Seattle-originating traffic is about even with last year’s numbers.
“We were expecting growth in [Seattle-originating traffic] this year of between three to five per cent, and we’re not seeing that,” said Collins.
But the bigger concern is the challenging year ahead for traffic out of Victoria, which represents only 15 per cent of the business, but is still a significant piece, Collins said. “The Canadian market is very, very important to us, even if it is a small proportion.”
Collins said the exchange rate is playing a role in the drop in Canadian traffic — the Canadian dollar traded for US$.698 on Wednesday. But the company is laying most of the blame on the geopolitical situation.
“I’ve never seen such a surge of national pride in my time on this planet, and it really is almost un-Canadian, but it’s very understandable,” said Collins, a Canadian who was formerly chief executive at B.C. Ferries.
“We have four Canadian flags at our terminal right now, and we’ve got two more on the boat.
“This has really struck a chord with Canadians. It’s unjustified, it’s betrayal, it’s a friend kicking you in the teeth when all you’ve done is stand by them.”
Paul Nursey, chief executive of Destination Greater Victoria, said early indications are that American visits are not being adversely affected by politics and trade policy.
“U.S. [leisure] travellers still seem to be booking at the same pace as last year,” Nursey said.
And Victoria is seeing an increase in Canadian visitors, he said. “Canadians are travelling more domestically. Canadians don’t spend as much, but they can provide volume, kind of like during COVID.”
Bill Lewis, general manager of the Magnolia Hotel and chair of the Hotel Association of Greater Victoria, said spring break has been busier than usual.
“We’re seeing both sides of the border travelling in larger-than-normal numbers this time of year,” he said, adding summer bookings suggest an increase in American business this year.
“Aside from the political tensions, the dollar exchange is making it really prohibitive to go south for Canadians. And then it’s making it a screaming deal for [Americans] to come north, so we’re seeing really strong trends on bookings in Victoria.”
The Magnolia is nearly full for spring break and other large properties like the Victoria Marriott are also reporting strong numbers.
Reid James, general manager of the Hotel Grand Pacific, said the hotel’s occupancy will be higher than last March due to meeting and conference business in the first half of the month, followed by a normal spring break.
James called the hotel’s American and Canadian business “essentially the same as last year.”
Lewis said he doesn’t anticipate any slowdown in American visits, given that tourists from Victoria’s main U.S. markets — Washington, Oregon and California — are still travelling.
Nursey said the Greater Victoria tourism industry’s health this year is tied to a solid foundation of conference business, which has picked up since the trade war erupted.
“We’re actually getting some Canadian programs that are repatriating back to Canada [from the U.S.] and Victoria’s winning a few last-minute ones,” he said, noting the city is trying to “shoehorn” into its packed schedule a few more conferences that have decided to switch to a Canadian host city.
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