HOTELS TALLY $125 MILLION IN SARS DAMAGE

<<< Back to main page

Torontonians Called On To Be Tourism Ambassadors

TORONTO � At the height of the impact from this spring�s SARS crisis, downtown Toronto hotels sat two-thirds empty, according to figures released today by the Greater Toronto Hotel Association (GTHA). The GTHA estimates the economic damage on the city�s hotel community to be $125 million � and rising.

�Economicolly, this is far worse than the fallout from the 9/11 terrorist attacks,� said GTHA President Rod Seiling. �After 9/11 our occupancy went down, but soon started to climb again. With SARS, occupancy went down, then kept going down.� On average across the Greater Toronto Area, hotels experienced a drop in occupancy of more than 21% in April compared to the same month last year. Occupancy figures show steep declines in each of the GTA�s three main hotel markets:

Location
APRIL 2003 Occupancy
Change from APRIL 2002

Downtown 43.8% � 27.1%

Airport/West 52.2% � 14.8%

East/North 39.6% � 20.5%

GTA Overall 46.7% � 21.4%

�We hit rock bottom during the week of April 27. Occupancy in downtown Toronto hotels was 29% that week � 62% lower than it was a year ago,� Seiling said.

The GTHA estimates the cancellations cost the city�s hotels $125 million in lost revenue. This has caused thousands of layoffs from Toronto-area hotels, at both the staff and management levels. Reduced work opportunities have also had an impact on thousands of other hotel employees.

�SARS has obviously been devastating from a business perspective, but the human impact is even more worrisome. We need immediate action, especially from the federal government, to provide employee relief through initiatives such as Employment Insurance and Workshare programs.�

Seiling warned that the crisis may not be over for hotels. Despite some modest improvement in business travel anticipated in May and June, the GTHA remains deeply concerned that leisure travel will continue to decline throughout the summer.

(more)

�Traditionally there is not as much business travel in July and August, so we depend on leisure dollars coming to the city,� Seiling said. �Unfortunately, many tourists made their summer travel plans during the SARS crisis, and have chosen to go elsewhere. It�s going to take a massive, sustained effort to get them to reconsider Toronto.�

As part of the province�s long-term, $128 million recovery program, destination marketing initiatives are being implemented to attract visitors to Toronto. In the short-term, Toronto-area hotels are augmenting this outreach with special deals and other incentives.

Seiling called on everyone in Toronto to participate in the recovery effort.

�The best ambassadors to get Toronto back on its feet are Torontonians,� he said. �Tell your friends, tell your family, tell your business associates to come to Toronto. We need to show the world that this is still a good, safe place to visit.�

The voice of Toronto�s hotel industry, the Greater Toronto Hotel Association represents 145 hotels, with approximately 34,000 guest rooms and more than 32,000 full time jobs. Founded in 1925, the GTHA enables competing hotels to work together on issues of public policy and charitable ventures, provides information and service to its members, and advocates to raise their profile and prosperity as a vital component of Toronto�s tourism industry.

Contact:
Rod Seiling, President
Greater Toronto Hotel Association
(416) 351-1276

TORONTO HOTELS WELCOME RECOVERY PLAN
Statement from Rod Seiling
President, Greater Toronto Hotel Association

April 30, 2003

On behalf of the 145 hotels who make up the Greater Toronto Hotel Association � and the more than 30,000 people they employ � I want to express sincere thanks to Premier Ernie Eves and the Government of Ontario for their commitment to a SARS recovery strategy, and particularly measures to help revitalize Toronto�s tourism industry.

The SARS crisis has been even more devastating to Toronto�s hotel community than the aftermath of the September 11 terrorist attacks in 2001. At that time, we believed things couldn�t get worse. We were wrong.

This is worse because it is affecting us alone. After 9/11, tourism around the world declined. Yes, we felt the impact, but so did our competitors, so at least it was a level playing field from a business perspective. The SARS outbreak, exacerbated by the World Health Organization�s travel advisory against visiting Toronto, was singularly damaging to our city.

Even before the SARS crisis, Toronto�s hotels were struggling. Tourism in our city has been declining, and we have lost significant market share in recent years. Now, with the impact of SARS � on top of the war in Iraq and some resentment in the U.S. about Canada�s non-participation in it � we are facing what is undoubtedly one of the most difficult periods Toronto hotels have ever experienced.

That is why we are grateful to the provincial government for recognizing the severity of the situation, and taking steps to address the challenges ahead as we try to recover.

Getting over this crisis will not be easy, or quick. We are thankful that health concerns have been resolved, and that the WHO has withdrawn its travel advisory. But the damage is done. A few advertisements or standard marketing approaches wouldn�t repair it, and we applaud Premier Eves for recognizing the need for a more comprehensive, longer-term recovery plan.

Toronto�s hotels will do everything possible over the next two years to take advantage of the funding and programs being offered by the provincial government. We implore the federal and municipal governments to also provide assistance, in a true community-wide effort to overcome the SARS setback.

If there is a silver lining to this dark cloud, it is the recognition that Toronto needs to do a better job of marketing itself as a tourist destination. Hopefully, when we see the results of the SARS recovery efforts over the next two years, it will demonstrate just how successful effective marketing can be.

The provincial government�s recovery package is a major step forward. Toronto�s hotels, working with Tourism Toronto and other partners, are committed to ensuring that it succeeds in attracting visitors back to our great city � in the short term, and for many years to come.

Contact:
Rod Seiling, President
Greater Toronto Hotel Association
(416) 351-1276

Back to top of Document