Toronto hotels see empty rooms pre-Pan Am

mississauga.com
July 6, 2015
By Michelle Mark

Toronto hotels were prepared for an onslaught of July bookings during the Pan Am Games, but some may end up checking in even fewer guests than last July.

With the Games one week away and ticket sales still well below the total 1.4 million available, hoteliers across the city have become increasingly concerned about vacant rooms throughout the month. Some are lowering rates or switching advertising tactics to attract tardy bookers.

Maged Girges, general manager at Town Inn Suites, said rooms throughout July have started to fill up in the past week, but only slowly. The hotel's bookings have fallen far short of expectations during a month that was supposed to draw 250,000 visitors to the Toronto area.

Girges said his hotel is booked throughout the month at a 53 per cent capacity, when a typical rate hovers around 60 per cent. He said it's clear the Pan Am Games haven't had the anticipated effect on room bookings.

"The ticket sales haven't been doing too great, and I think it's all the hype - there was a lot of hype about these Games," he said.

But Girges said he hasn't started to panic just yet. Town Inn Suites didn't raise its rates in anticipation of the Games as much as some competitors did, he said, and his hopes remain pinned on visitors making last-minute bookings as the Games draw closer.

Terry Mundell, president and CEO of the Greater Toronto Hotel Association, said the story is largely the same across the city. Occupancy rates are finally starting to rise, but they aren't as high as they should be - particularly in the downtown core. He said while some hotels are faring better than others, most are approaching the Games with cautious optimism that bookings will spike just before the Games begin.

"I think they're nervous," he said. "The biggest issue here is that booking patterns, as well as the consumers, have changed dramatically. You can see that in the purchase of tickets. They tend to be more of a last-minute booker."

Mundell said last July yielded an approximate 80-per-cent occupancy rate for most of Toronto's hotels, and this year's target was similar. Anything lower than 70 per cent during the summer months could throw hotels off their yearly projections.

"We're still hopeful that we'll get to where we need to be, but we're not there yet," he said.

Heather Irwin, a spokeswoman for the Pan Am Games, wouldn't comment on the lack of hotel bookings, but confirmed almost 750,000 tickets have been sold. The number rose from 400,000 sold earlier in June, but about half of the total tickets available remain unsold.

"Regarding ticket sales, we're thrilled with the momentum we've seen in the last month," Irwin said in a statement. "We're selling three or four times what we were selling a month ago."

Mundell speculated that some of the reluctance to book hotel rooms may stem from visitors' uncertainty about the logistical aspects of the Games. Unclear or hard-to-reach venues, or fears of hitting traffic congestion may have made visitors hold off on making hotel decisions. As people start to get a better sense of access to the Games, he said, the room bookings could surge.

"It would be very, very useful if we could remind people of the great opportunity there is here, and what a great summer it's going to be in Toronto," he said. "And you actually can get into the city. And there is room available."