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International visitors help to put Victoria tourism on record pace

Victoria’s tourism industry is on a record pace for 2016, with a big push from international visitors, according to industry experts. Numbers released Wednesday by Statistics Canada show the province saw a 12.
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Tourists and residents rub shoulders on Government Street this year on Aug. 1 for B.C. Day festivities.

Victoria’s tourism industry is on a record pace for 2016, with a big push from international visitors, according to industry experts.

Numbers released Wednesday by Statistics Canada show the province saw a 12.2 per cent increase in international visitors through the first 10 months of the year.

“I think Victoria got more than its share of that,” said Bill Lewis, chair of Tourism Victoria’s board of directors and general manager of the Magnolia Hotel.

“What we’ve seen is Canada as a nation is a hot tourism market right now. Part of that is Canada is viewed as an interesting place, but it’s also a safe destination. And with what is going on in Europe, that influences some travel buys.”

Lewis said that in Victoria, that has translated to a significant increase in American visitors and solid growth from China.

“Hotels have had another good year here. And I think when we see the final tally, it will be a second consecutive record year for tourism hotel numbers,” he said, noting that means average occupancy in the range of 70 to 71 per cent.

Data from the national number cruncher were not available for the Victoria market, but they did show that B.C. welcomed nearly 4.9 million international visitors through the end of October. That’s more than the province got in all of 2015.

So far this year, B.C. has seen a 9.4 per cent increase in visits from the U.S., to more than five million people, a 14.4 per cent increase in Asian traffic to 1.06 million, and a 13.8 per cent increase from Europe to 494,000.

At the same time, the entire country has seen an 11 per cent increase in international traffic to 17.7 million people this year.

Hospitality Industry consultant Frank Bourree said hotels, restaurants and beverage outlets got a big boost this year, and Victoria is now considered to be the busiest cruise ship terminal on the West Coast.

“We are at record hotel rates, both in terms of occupancy levels and room rate,” said Bourree, the principal of Chemistry Consulting. “Things are looking up.”

According to Destination B.C., which markets the province to the world, improved air access from such places as Australia, Mexico, the U.K. and China has contributed to the increase in international visits.

So far this year, visits from Australia are up by 45.3 per cent, China by 23.2 per cent, Mexico by 23 per cent and the U.K. by 22.8 per cent.

Marsha Walden, chief executive of Destination B.C., said they also have seen a bump in shoulder-season traffic.

“To complement peak-season demand, we’ve also worked hard to promote off-peak travel, pushing travellers to every corner of this province year-round,” she said.

A lot of focus is being put on the Chinese market. But unlike past years, when the strategy focused on tour groups, it’s being altered to target the individual traveller.

Tourism Victoria chief executive Paul Nursey said officials intend to build on the 20 per cent growth they’ve seen from that market each year.

“We have a great brand and a great product,” Nursey said in an earlier interview. “But we are being more deliberate in targeting overnight stays.”

Given the growing Chinese middle class, Tourism Victoria has altered its sales force and strategy — using a digital approach and conversing in the local language — to appeal to the individual traveller.

“It’s a good strategy,” said Bourree, noting that Victoria should take a page from Australia’s book.

He said Australia ran into trouble with the Chinese market by appealing to tour operators, which meant low-end tourists in tour buses filling budget hotel properties.

“Australia changed its focus to the high-yield, high-end Chinese market, and it’s starting to have some effect,” he said.

Victoria is expecting another strong year next year.

Lewis said all the early indicators, such as early booking and conference commitments, suggest Victoria will maintain the growth momentum in 2017.

He cited a weak Canadian dollar compared with the U.S. greenback as a factor in growing American visits in 2017, while Europe is growing steadily and Mexico is expected to surge again.

“We expect another strong year. All the fundamentals are pointing in the same direction.”

Bourree said that with Tourism Victoria now responsible for marketing the Victoria Conference Centre, the facility should get a needed shot in the arm.

aduffy@timescolonist.com