As communities across British Columbia welcome record numbers of visitors, the need for new hotel developments has never been more urgent. The BC Hotel Association advocates for increased hotel builds in municipalities to support growing tourism demand, create jobs, strengthen local economies, and ensure our province remains a competitive and welcoming destination for travelers from around the world.
A new report spearheaded by Destination Greater Victoria and developed through the Greater Victoria Hotel Development Working Group outlines a clear, time-sensitive path to address the region’s growing hotel room shortage. With inventory down 25% since 2016 and demand rising, the report identifies a supply gap of at least 2,000 rooms over the next decade.
Recent shifts in the real estate market, including lower land costs, have created a generational opportunity to accelerate hotel development across the region.
The Working Group brought together industry leaders, municipalities, Indigenous partners, and financial institutions, including the BC Hotel Association, represented by its President & CEO, Paul Hawes. Together, they identified six priority areas to simplify, de-risk, and advance new hotel projects.
“Addressing the hotel supply gap in Greater Victoria will require a coordinated effort by destination developers, landowners, municipal governments, Indigenous development corporations, private developers and investors, and hotel operators,” said Paul Nursey, president & CEO, Destination Greater Victoria. “This report provides a practical roadmap to support sustainable growth in our visitor economy.”
The report highlights the significant economic and community benefits of new hotel development, including over 2,700 jobs, $85 million in annual wages, and more than $100 million in annual visitor spending.
To build the 10,000 hotel rooms Vancouver urgently needs by 2050 to keep pace with growing demand, a new report released today by Destination Vancouver and the BC Hotel Association, Hotel Community Impact Assessment, outlines a clear strategy to meet this target while boosting jobs, animating neighbourhoods, and unlocking billions in economic activity.
Shifts in the real estate market—such as declining demand for office and strata developments—have created a rare window of opportunity for hotel development.
“Hotel development needs to be seen as a city-building tool, said Royce Chwin, President & CEO of Destination Vancouver. “We’re seeing unprecedented interest for investment in new hotel properties in Vancouver. There is an opening to take swift action, otherwise capital will move wherever conditions are more favourable.”
The Vancouver Hotel Development Task Force to take concrete action on the issue. Made up of representatives from industry and the City of Vancouver, the goal of the Task Force is to identify and recommend strategies to enable a sustainable and appropriate supply of new hotel development.
“This is about more than hotel rooms—it’s about building a vibrant, resilient city. Hotels are economic engines and social anchors,” said Ingrid Jarrett, co-chair of the Task Force with Chwin and the former CEO of the BC Hotel Association. “They support jobs, events, tourism, local businesses, and can enliven neighbourhoods.”
This new report was commissioned by the Task Force and was undertaken in parallel with official hotel policy updates from the City of Vancouver.
Although this report is focused on hotel development in Vancouver, both the methodology and many of the opportunities identified are likely to apply across other BC municipalities experiencing a hotel shortage.
