Olympic Games Brings Success to Vancouver’s Hotel Industry
Recent analysis by Deloitte, the business advisory firm, has found that revenue per available room (revPAR), a key performance indicator for the hotel industry, jumped 157.5 percent to CAD$202 in Vancouver during the month of February when it hosted the 2010 Winter Olympic Games.
Marvin Rust, Global Managing Partner of Hospitality at Deloitte, commenting on the results, said: “Although average room rate growth during an Olympic month is normally over 100 percent in the host city, average room rates increased just short of this at 86.9 percent in Vancouver. With a corresponding 37.7 percent jump in occupancy however, revPAR increases were comparable to other Olympic host cities.”
He continued: “Increased profile is part of the legacy that an event like the Olympic Games leaves on the host country. The exposure that Vancouver received during the Games came at the perfect time after 18 months of revPAR declines due to the economic crises. The event should certainly act as a catalyst to strengthen the recovery process along the West coast of Canada.”
Now that the baton has been passed to London for the Olympic and Paralympic Games in 2012, Heather Hancock, lead partner at Deloitte for London 2012, commented: “There is little doubt that the London 2012 Games will play an integral part in helping to attract visitors, elite athletes, esteemed guests and delegates from around the world to the city. As we draw closer to the start of the Olympic and Paralympic Games, it is hoped that the increased interest in London, and the UK as a whole, will help to create positive and longer term growth and sustainability within the tourism, hospitality and leisure industry.”
Hotel performance in host cities during Olympic Games in local currency
Host city | Date | Occupancy (%) | Occupancy change (%) | Average room rates | Average room rates change (%) | RevPAR | RevPAR change (%) |
|---|---|---|---|---|---|---|---|
|
Vancouver |
Feb-10 |
86.0 |
37.7 |
234 |
86.9 |
202 |
157.5 |
|
Whistler |
Feb-10 |
81.0 |
9.6 |
569 |
94.2 |
461 |
112.8 |
|
Beijing |
Aug-08 |
57.7 |
-18.7 |
2,748 |
249.8 |
1,585 |
184.4 |
|
Turin |
Feb-06 |
82.7 |
35.1 |
196 |
112.6 |
162 |
187.1 |
|
Athens |
Aug-04 |
84.7 |
64.1 |
394 |
258.8 |
334 |
488.8 |
|
Salt Lake City |
Feb-02 |
87.4 |
26.6 |
182 |
124.1 |
159 |
183.8 |
|
Sydney |
Sep-00 |
84.5 |
12.1 |
317 |
100.3 |
268 |
124.5 |
Source: Smith Travel Research & STR Global
Notes:
All analysis in local currency
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