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'They're doing stuff for free': Slow tourism for Okanagan, despite steady visitors

While airport traffic and hotel bookings show tourists are travelling to Kelowna this summer, whether they're spending money there is another story
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The City of Kelowna. (Photo/Tourism Kelowna)

It hasn't been the peak tourism season Frank Fraser was hoping for. 

The co-owner of Sagebrush Tours, which offers interactive wine excursions throughout the Okanagan, said there were high hopes that this summer would be a bounce-back from last year when tourism was significantly down, largely as a residual effect from the 2023 Grouse Complex wildfires that produced widespread smoke and travel advisories. 

With skies in the Okanagan mostly clear this summer, Fraser said there was "a lot of optimism" that it would be a strong tourism season across various sectors — but that hasn't materialized for Sagebrush.

"We are disappointed, for sure, because we've had a pretty good summer, and as far as smoke goes, it's been minimal. As far as a heat dome, there hasn't been one," Fraser told Capital News Friday. 

The slow season for wine tours comes despite some strong indicators that tourists are, in fact, flocking to the Okanagan. 

On Aug. 14, Lindsay Kelm, spokesperson with Tourism Kelowna, said there are positive trends, as passenger volumes through Kelowna International Airport "point to a robust summer." She also highlighted that Booking.com is reporting a 61 per cent year-over-year increase in interest for Kelowna hotel stays. 

"While full visitation data will arrive later this year, early travel insights and seasonal booking patterns show our region competing strongly as one of Canada’s most sought-after destinations," Kelm said. 

But while the Okanagan remains a top choice for summer leisure travel, the question remains: are tourists opening their pocketbooks during their stay? 

Fraser said from his perspective in the wine tour industry, tourists are keeping their credit cards in their wallets where they can. 

He pointed out that wine tours fall under the category of discretionary spending, which he thinks is where a lot of people are cutting back in order to still be able to afford an Okanagan summer holiday. 

"There's a fair amount of tourists in the valley, but they're doing stuff for free. They're going to the beach and they're going swimming, or they're going to dine out only once or twice instead of every night. So all of that has had a dramatic impact," he said. 

Fraser said there's been "peaks and valleys" when it comes to wine tour bookings this summer, with weekends still tending to be pretty strong and weekdays, "where we used to see quite a lot of activity," being much slower. 

He said he thinks the economy has chilled spending this year, and past challenges such as wildfires and the Summerland, Highway 97 landslide in 2023, have taken a good chunk of revenue out of the most critical time for his business. This year, people "hedging their bet," he said, leaving bookings until the last minute while they see how the weather and smoke situation pans out, making it hard for his business "to gauge how to react."

"You kind of have to pivot constantly as to sort of what the on-the-ground intel is telling you," he said. 

While hotel bookings are looking strong, it could be a reflection of short-term rental restrictions that have put a freeze on many alternative types of accommodations. Fraser claimed those restrictions are impacting tourism in the valley. 

"If people don't have reasonably priced accommodations or a variety of types of accommodations available to them, then that's sometimes a way not to come," he said.

Many were hoping that the call to support local, spurred on by the incendiary 51st state rhetoric and tariff policy of U.S. President Donald Trump, would result in more Canadians finding local tourism destinations to bring their dollars to. That includes the newly elected chair of the Thompson Okanagan Tourism Board, Sandra Oldfield, who she hoped Canadians' anger towards the situation south of the border would translate into more Canadians checking out their backyard. 

Fraser said that while Sagebrush Tours has seen many repeat customers coming back for the "VIP" experience they offer, he isn't experiencing as many new Canadian clients as he was hoping â€” "not in a dramatic way, not in an appreciably vigorous way where sales are back to normal or above. We're still below normal."

Sagebrush Tours started out in 2017, and "normal," for Fraser, means pre-pandemic. He stated that "nothing's been the same" since COVID, including this year. 

He said he wouldn't be surprised if restaurants are struggling, too, based on what he's heard. 

"Just talking to friends in various businesses, I say, 'How are you spending your summer?' And pretty well everybody's telling me, 'I can't afford to go out for dinner. I'd like to, but I look at the price and I feel like I can't afford it.'"

One popular restaurant situated in the middle of the city's Meet Me on Bernard summer program that closes Kelowna's main street between the 200 and 300 blocks from May 16 to Sept. 14, is feeling some effects of a flat tourism season, despite its advantageous location. 

Cantina del Centro supervisor Theo Mackenzie told Capital News that the restaurant has seen a slightly busier summer than last year, which was "a bit of a bust," likely due to memories of the smoke from the year previous.

But Mackenzie said this year's peak season "has been a little soft. I think that might just be the times."

Weekends have been strong and Sunday brunch has been bustling, but it's falling short of expectations. Mackenzie moved to Kelowna last winter and was expecting to see the "crazy Kelowna tourism" that is often talked about, which hasn't come to pass. 

"It's still very busy ... but not nearly as busy as it could be," Mackenzie said. 

Fraser blames, in part, poor messaging from the province, specifically when, amid the 2023 wildfires, the province told tourists not to come to the area.

"There were many areas of the valley that were still perfectly suitable for tourism, there were just localized areas where you shouldn't come, but the problem is they just said 'don't come,' and we couldn't believe it," Fraser said. "Tourism is a huge part of the economy, and for the government to tell our clients, don't come, I mean — there was no consultation with us, with industry, before they made the announcement. They just went ahead and did it."

Fraser has also been amazed to see that many American tourists don't realize their dollar is worth more in Canada until they get here, leaving room for improvement when it comes to tourism messaging south of the border. 

According to Destination British Columbia's tourism industry dashboard, overnight arrivals from the U.S. were down 9.6 per cent in May, and 4.5 per cent overall that month. It's a stark contrast from January, when total U.S. arrivals were up 28 per cent, suggesting the spike that coincided with Trump's inauguration is running out of steam. 

Yet, there remains some optimism in the region. Paula Quinn, executive director of the Downtown Kelowna Association, said that the streets and beaches of the city are still bustling as per usual. 

"I have seen for myself the upbeatness (sic) of people down here, and their ability to be able to eke out whatever it is that they have, and make as much enjoyment as they possibly can," she said. "Memories are made in the summertime, and this is still the place to do that."

Quinn added that the downtown may need to adapt to shifting tourism patterns. 

"I think the days of opening at nine and closing at five, maybe it's something that we all need to look at."

 

 



Brendan Shykora

About the Author: Brendan Shykora

I started at the Morning Star as a newspaper carrier at the age of 8. I went on to pursue a Master of Journalism at Carleton University and have been a journalist in Vernon since 2019.
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