A strong start to the tourism season could translate into a more vibrant and vacancy-free Government Street, according to the organization tasked with selling Victoria to the world.
Paul Nursey, chief executive of Tourism Victoria, believes the white-hot start to the tourism season is going to mean more investment along what has been a vacancy-riddled retail corridor and popular stroll for tourists.
“More customers mean more business opportunities,” said Nursey. “We’re seeing more visitors who are spending more and staying longer, and entrepreneurs are smart, they see where the business opportunities are.”
It appears some already have. There are still several vacancies on Government between the retail base of the street at Humboldt and as far north as Johnson Street, but it’s been trimmed considerably since the start of the year.
According to the City of Victoria, there have been eight new business licences granted for Government Street so far this year, which has led to a new T-shirt/souvenir shop, a whale-watching company and a high-end boutique along the ground level.
Nursey believes that’s just a start to a revitalized street and it’s down to a solid beginning to the tourism season in the region’s hotels.
“The last couple of years we’ve seen staggering growth, and between January and April we’ve seen a 25 per cent increase in revenue per available room and 45,000 new room-nights sold. That’s $10 million in gross revenue from hotel room sales in the off-season,” he said. “Those are meaningful numbers.”
According to figures collected by Chemistry Consulting, Victoria’s hotels have seen a 6.2 per cent increase in average occupancy through the first four months of the year with revenue per available room hitting $69 per night, up $10.46 over the same period last year. The average daily room rate has hit $112.80, up from $106.47 in 2014.
B.C. Ferries have also reported a five per cent increase in vehicle traffic and a 4.6 per cent increase in passenger traffic. Victoria International Airport has had a four per cent increase in passengers through the first four months of 2015.
Candy Mo, who opened her ProtoXtype boutique selling lightweight travel wear and baggage at 1233 Government late last summer, said her decision to open on the main tourist strip was the increase in activity she saw last year.
“Government has the most tourists. There are so many people here in the summer time and the downtown is the busiest area in Victoria. I want to be in front of a lot of people,” she said. “We wanted people to know about us, so I thought it would be a great place to open up first.”
While Mo took the chance the traffic would be strong, the chief executive of the Greater Victoria Chamber of Commerce said it may take other entrepreneurs more time.
“The challenge I see with Government is it may take a more prolonged period of positive economic activity to draw tenants who will make a greater investment,” said Bruce Carter. He noted some retailers are gun shy after five or six years of poor returns. “It was a good year last year, but many businesses will look to see two good years in a row, a second strong tourism season, to get out of the hole from those other years before they consider investing.
“I’m keen to see those Government Street businesses filled, but it may not be until next year.”
Victoria Mayor Lisa Helps said Government Street is one of her top priorities and has commissioned a small task force to develop a 12-month action plan, with a checklist, to take on the issue. “Nothing will happen unless we make a plan,” Helps said. “If we can solve this nut, we can solve anything.”
That team is separate from the Mayor's Task Force on Economic Development and Prosperity, launched in April with a goal of bridging the gap between City Hall and the business community.
The task force has already met three times and will file a final report by mid-July.
Helps said some initial feedback the economic development group has offered includes cutting red tape and changing the culture at City Hall to remove barriers for business hoping to set up and grow in Victoria.
