Whistler shows signs of resiliance in slower economic times. Tourism Whistler released its December numbers on Wednesday, and while they were well down compared to last year they were also better than forecast.
According to Jeff McDonald, manager of public and member communications for Tourism Whistler, there is room for optimism as well as caution in the current economic climate.
“Based on what we’ve seen, there is reason to be optimistic that bookings will be higher than current pace reports indicate,” he said.
Paid room nights in December 2008 were down 11 per cent compared to December 2007, which was a record December for the resort. Compared to the December average for the last five years, however, Tourism Whistler expects to be down just two or three per cent.
January 2009 room nights are also pacing a little more than 10 per cent behind January 2008, “but we are seeing week over week increases and are now only pacing three per cent behind the same period two years ago in January (January 2007), to put it into perspective.”
McDonald says the usual method for forecasting visitor numbers is not as reliable, as most reports are made 120 days out and many people are booking much closer to the dateAt the start of the season, Tourism Whistler warned that the worst case scenario for the resort was a decline of 12 per cent over the last year, while the best case was five per cent – on par with the winter of 2003-2004 when people stayed away because of the lack of snow.
Challenges this year include the economic crisis and a low snowpack. However some factors, like a lower Canadian dollar and lower gas prices, are also helping the resort’s bottom line. The Olympics and Peak 2 Peak Gondola also generated additional publicity for the resort, while also bringing competitions like World Cup test events to the region. (Pique Newsmagazine Jan 22, 09) Learn more about Whistler Resort.
Canada’s central bank says it expects the current recession will be deep and painful but relatively short-lived.
“We expect that this recession won’t be as long as former recessions, for instance the recession in the 1990s,” Bank of Canada governor Mark Carney said Thursday . There are several reasons for this, he added.
“First of all, the extraordinary easing up on monetary policy and monetary and budgetary policies which are extremely significant and, thirdly, the way our currency has reacted,” Carney said in French during a televised press conference.
Canada’s dollar has fallen dramatically in recent months, trading on Thursday at about 79 cents US – down from about 94 cents at the beginning of October – while the Bank of Canada and commercial banks have lowered interest rates sharply over the same time.
“And it should be said there is flexibility in the Canadian market and this is very important. Our level of indebtedness is far less than in other countries and our budgetary wiggle room of the federal government and provincial governments is much better than before.”
U.S. President Barack Obama was sworn into office Tuesday determined to spend the American economy out of the hole with a massive package worth close to a trillion dollars US.
In Canada, Prime Minister Harper has suggested Ottawa’s package would be in the $20-$30 billion range.
But before the rebound, Canada is in for quick if short fall.
The central bank says preliminary numbers suggest the last three months of 2008 saw the economy contract at an annualized rate of 2.3 per cent, following a surprisingly strong 1.3 per cent growth rate in the third quarter.
But the Bank of Canada predicts the first three months of this year will see the economy shrink at an annualized rate of 4.8 per cent, before the rate of decline slows to one per cent in the second quarter.
But then things start looking up, as recoveries in the U.S. and around the world – in combination with domestic factors such as the lower dollar, low interest rates and government stimulus – begin to restart the engines of the Canadian economy.(Canadian Press-January 22, 2009)
davebrownrealtor
