Tourism Kelowna's 2023 Report to the Community

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2023 REPORT TO THE COMMUNITY

LAND ACKNOWLEDGEMENT

Tourism Kelowna would like to thank Westbank First Nation and Okanagan Indian Band for the privilege to live, work, and play on the tmx ʷúlaʔx ʷ (land), that is the unceded and traditional territory of the syilx Okanagan people, the original stewards of these lands and to whom we give thanks to as our hosts.

MESSAGE FROM THE PRESIDENT & CEO

2023: Strength Amidst Adversity

In the first unrestricted year post-pandemic, Kelowna’s tourism industry continued its recovery, with 2023 starting off strong and all indicators pointing to a promising year ahead. However, the devasting wildfires in August tested our community’s strength while significantly affecting the local tourism industry during its peak season.

Though the wildfires posed unexpected hurdles, residents and tourism businesses united to support each other. Tourism Kelowna once again relied on collaboration as a keystone to recovery, partnering and leveraging funds to promote Kelowna regionally and nationally. Although the third quarter of the year saw a drop in hotel occupancy—which had been strong and pacing ahead of previous years during the first and second quarter—things stabilized during the year’s final quarter. The adaptability and resolve of our tourism sector, which perseveres to continue delivering the renowned Okanagan visitor experience, is unmatched.

Tourism Kelowna collaborates with tourism businesses in the region, including its close to 400 members and advertisers, to create a tourism economy that is sustainable and welcoming for both visitors and residents. Our team also works in conjunction with tourism industry associations and partners, local business and economic development agencies, and area municipalities to strengthen the long-term resiliency of our destination.

It is this brand promise that will ensure the Okanagan Valley’s appeal as a destination of choice. Our recently released Economic Impact Study, highlighted at the end of this report, shows that tourism in and around Kelowna has grown to a $2.4 billion industry, with visitors spending $540 million in the region. These contributions not only bolster the economy but also enable the region’s enviable quality of life, where residents have access to diverse amenities and experiences thanks partly to the region’s vital tourism industry.

Through this 2023 Report to the Community, we proudly showcase our team’s work during this challenging year. Our services focus on four strategic pillars: seasonality, destination management, organizational excellence, and stakeholder collaboration. We recognize these achievements would not be possible without the vision and trust of the Tourism Kelowna Board, our members, advertisers, volunteers, industry partners, and stakeholders, whose unwavering commitment and support continue to propel our industry forward.

From our team to yours, thank you.

“On behalf of the Kelowna Hotel Motel Association, we thank Tourism Kelowna’s team for their efforts in 2023. Timely and effective communication with our stakeholders and area visitors was paramount in navigating the landscape and recovery for our hotels amidst the summer wildfires. Tourism Kelowna’s continued efforts to strengthen shoulder-season business and showcase the year-round appeal of our destination are appreciated and welcomed by our KHMA members. Our group of hotel leaders is looking forward to future collaborations with Tourism Kelowna, showcasing our region as a top destination of choice in Canada.”

Edan Fay, President | Kelowna Hotel Motel Association

INDUSTRY PERFORMANCE

Through most of 2023, Kelowna’s tourism industry performed well, poised for a successful year. However, August’s devastating wildfires impacted tourism in late August and early September. By the end of the year though, several industry indicators were on-par or nearing those of 2022, which approached benchmarks indicators achieved in 2019.

Shining Moments in 2023

¡ Major events returned in full force this year, with BreakOut West and the Pan Continental Curling Championships taking place in the fall of 2023.

¡ Curling Canada announced that the 2025 Montana’s Brier would be hosted in Kelowna.

¡ For the second year in a row, Kelowna made it on Leading Places’ 100 Most Loved Destinations list, moving up from spot 96 in 2022 to spot 84 in 2023.

¡ The Kelowna International Airport exceeded two million passengers, welcomed new routes to its schedule, and kicked off the first phase of its Airport Terminal Building Expansion Project.

¡ The Government of BC announced $44.8 million in funding for the new Centre for Food, Wine and Tourism at Okanagan College’s Kelowna campus.

2023 DESTINATION INDICATORS AT A GLANCE

2.2M ESTIMATED TOTAL TRIPS TO KELOWNA*

2M PASSENGERS THROUGH KELOWNA INTERNATIONAL AIRPORT (YLW)**

60%

AVERAGE HOTEL OCCUPANCY8

$171M ESTIMATED ROOM REVENUE***

$180 HOTEL AVERAGE DAILY RATE (ADR)8

* Data provided by Intervistas

$113 HOTEL REVENUE PER AVAILABLE ROOM (REVPAR)8

** Kelowna International Airport (YLW) Facts & Statistics

*** BC Stats Data, Tourism, Room Revenues and Property Counts

8 Hotel data provided by: 2023 STR, LLC / STR Global, Ltd. trading as “STR.” Republication or other re-use of this data without the express written permission of STR is strictly prohibited.

Manteo at Eldorado Resort Credit: Okanagraphy Pan Continental Curling Championships 2023 Credit: World Curling Federation/Steve Seixero

KEY RESULTS & ACCOMPLISHMENTS

Seasonality | Establish

Kelowna and the Central Okanagan as a four-season travel destination

■ Exceeded 2023 Business Development targets for meetings conferences, sports, and major events, securing 174 leads and more than 49,000 future room nights, for a combined estimated economic impact of over $34M.

■ Secured more than $850,000 in value-in-kind (bonus) advertising for the destination.

■ Garnered over 51 million impressions across Tourism Kelowna’s social media channels, and close to 1.9 million sessions and over 3.1 million pageviews on tourismkelowna.com.

■ Resumed Tourism Kelowna’s Travel Media Program at full capacity, showcasing the region at the Travel Media Association of Canada 2023 Conference, and inviting journalists, content creators, and influencers to come experience the best of Kelowna, resulting in the publication of 375 articles across various publications and online channels.

■ Continued our partnership with the Central Okanagan Economic Development Commission and Accelerate Okanagan for the award-winning OKGo campaign, which aligns with Destination Canada’s Global Economic Sector Strategy and highlights regional success stories to attract meetings and conferences, new talent, and business investment. In 2023, this included hosting 11 trade and investment representatives from countries around the globe.

■ Entered into a 2-year agreement to provide visitor services to the District of Lake Country.

■ Produced content in collaboration with the District of Lake Country and Visit Westside, supported by Destination BC’s co-op program, to highlight spring in the Central Okanagan, specifically from an accessible tourism lens thanks to a partnership with local content creators.

“Tourism Kelowna’s communications during the 2023 wildfires led to an uptake in local visitation to our tasting room. On numerous occasions, guests shared with our staff that Tourism Kelowna’s online marketing campaigns encouraged them to support area wineries, and they felt compelled to act. This is not the first time Tourism Kelowna has had to act quickly during a regional crisis— we have always been impressed by their level of leadership and messaging during tough times to help support local wineries.”

Destination Management | Foster the sustainable growth of the destination

■ Supported economic recovery from 2023 wildfires through various initiatives, including:

• Executing a bridge advertising campaign, “Kelowna is Open.”

• Increasing fall advertising using marketing reserve funds.

• Partnering with the Kelowna Hotel Motel Association (KHMA) on content marketing.

• Partnering with the Kelowna Chamber on a “Shop Local Now” campaign.

• Relaunching the #exploreKelowna Local Savings Pass.

• Collaborating with industry on advocacy requests/ marketing campaigns.

■ Hosted provincial and federal Ministers throughout the year for industry roundtables, stimulating conversation and feedback on a multitude of topics including climate change and the impact of area wildfires.

■ Welcomed more than 222,000 guests to the Kelowna Visitor Centre (KVC), providing direct service to almost 51,000 people.

■ Led climate action initiatives through the KVC, including:

• Increasing the number of solar panels from 48 to 74, generating more power for the KVC and contributing back to the grid in the summer.

• Coordinating having one tree planted for each purchase made through the KVC retail program; in 2023, more than 19,000 trees were planted.

■ Hosted the fourth annual Love for Kelowna Day, connecting residents and visitors with tourism businesses and showcasing the value of tourism. The 2023 event was the first iteration with zero health restrictions in place, with 24 member businesses providing special offers that were included as a bingo-style challenge and nearly 1,200 people—a mix of locals and visitors—passing through the doors of the KVC.

■ Partnered with Canada’s 2SLGBTQI+ Chamber of Commerce (CGLCC) to host an information session about its Rainbow Registered accreditation program, which included training about 2SLGBTQI+ inclusion.

Internal Excellence | Ensure organizational excellence

■ Combined sales from our consignment retail program and Love for Kelowna and Kelowna Vibes brands resulted in more than $695,000 in revenue.

■ Supported more than 100 local vendors through the consignment retail program, which generated just over $372,000 in direct sales for these vendors, creating a tangible impact in the community.

■ Worked with InterVistas to complete the 2022-23 Economic Impact Study, which included Visitor Intercept Surveys that provide our team with up-to-date information pertaining to consumer travel habits and spending.

■ Worked with a University of British Columbia Okanagan Campus graduate student to uncover potential opportunities and limitations of regenerative and sustainable tourism.

■ Updated internal policies related to diversity, equity, inclusion, and accessibility (DEIA) and sustainability; work continues to build on existing DEIA and sustainability initiatives.

External Engagement

| Engage partners and external stakeholders to collaboratively grow the Central Okanagan visitor economy.

■ Rolled out Kelowna’s Tourism Destination Development Plan— co-created with the City of Kelowna, industry partners, and area residents—in March. Tourism Kelowna was recognized with a 2023 Meaningful Tourism Award thanks in part to the plan.

■ Joined partners from Kelowna International Airport and the Thompson Okanagan Tourism Association to advocate for more direct flights between Seattle and Kelowna; in December, Alaska Airlines announced it would be increasing its flights.

■ Worked with the City of Kelowna to commission a research report of tourism industry housing needs.

■ Participated in City-led engagement sessions relating to land development and public health/safety.

■ Helped establish a destination brand and reputation management working group.

■ Worked with the Downtown Kelowna Association to support and market Meet Me on Bernard.

■ Welcomed an Appointed Director, representing Westbank First Nation, to the 2023-24 Board of Directors.

■ Joined forces with Travel Penticton, Destination Osoyoos, Tourism Vernon, and Tourism Kamloops to launch Travelling Out in the Okanagan, a marketing campaign targeting the 2SLGBTQIA+ travel market, with funding through Destination BC’s Co-operative Marketing Program.

Knox Mountain lookout Credit: Darren Hull Studios Okanagan + Co. Credit: Kirsten Taylor

ADMINISTRATION & FINANCE

Our Administration & Finance team manages Tourism Kelowna’s daily operations, which includes supporting the Society’s Board of Directors and acting as stewards of the organization’s external funding and self-earned revenue.

In 2023, the team continued to guide our organization as follows:

■ Maintaining strong fiscal management and Tourism Kelowna’s history of delivering a clean annual audit report of all financial statements, risk management, and balance and controls.

■ Managing ongoing re-forecasting of the operations budget, as needed, while applying for and managing the administration of government grants.

■ Overseeing revenue analysis and reporting requirements associated with sometimes unpredictable MRDT funding.

Tourism Kelowna Operating Statement

Acknowledgements

Tourism Kelowna extends its thanks the following funding and industry partners and organizations for their ongoing support:

■ Government of Canada

■ Government of British Columbia

■ City of Kelowna

■ District of Lake Country

■ City of West Kelowna

■ Westbank First Nation

■ Destination Canada

■ Destination British Columbia

■ Tourism Industry Association of Canada

■ Tourism Industry Association of BC

■ BC Hotel Association

■ Thompson Okanagan Tourism Association

■ Kelowna Hotel Motel Association

■ Kelowna International Airport

We extend our sincere thanks to our Board of Directors for the insight, expertise, and support they provide to our organization amidst the consistently changing tourism landscape.

We are grateful for our team members and volunteers who continue to work purposefully, inspiring visitors, welcoming new ideas, engaging in authentic conversations, and nurturing valuable connections within and beyond the team, all in support of our members and local tourism businesses.

Finally, we applaud the grit, resiliency, and unwavering spirit of our local tourism industry. It is thanks to your hard work that we can confidently market Kelowna as a destination of choice. We appreciate your ongoing support and feedback, always pushing us to expand our thinking and look for new ways to support you as we work together to build a more sustainable, resilient destination

Total Revenue | $5,624,810
Total Expenses | $5,911,411* Meetings, Conferences, & Events $650,257 Administration $532,027 Wages/Benefits $1,536,966 Leisure Marketing $2,187,222 Community & Visitor Engagement $1,004,939 *A surplus from the previous year was used to cover the increase in expenses. Municipal and Regional District Tax (MRDT)/ Destination Marketing Fund (DMF) $3,705,491 Government Subsidies $328,873 Municipal/Provincial Funds $445,616 Retail/Other $729,966 Partner Advertising $414,864
Myra Canyon Credit: Ken Hagen

Fostering Strength in Unpredictable Times

There is no question that tourism remains a vital industry in our region, contributing both economically and socially to the fabric of the communities that comprise the Central Okanagan. We know social responsibility and community engagement remain more important than ever, which is why our team continues to seek out collaborative partnerships and activation opportunities that promote our industry, support community members, and contribute to the long-term resilience of our destination.

The roll-out of Kelowna’s collaborative Tourism Destination Development Plan (TDDP), for example, has provided a roadmap that our organization will continue to use in support of sustainable, long-term growth for Kelowna and the Central Okanagan. While there are several factors potentially impacting the success of our industry in the year ahead—growing impact of climate change (including effects of severe weather to crops), consumer constraints due inflation, ongoing labour and housing shortages, concerns over waterways due to invasive mussels—we remain focused on the day-to-day activities that will contribute to our industry’s success, ready to act when adversity may arise.

In 2024, we will target domestic visitors through dedicated advertising campaigns for spring and fall travel, while also using our owned, earned, and shared media channels to market Kelowna year-round. Our team continues to capitalize on the high demand for business events to be hosted in our region. The pursuit of major events will also continue, with 2025 being a key year thanks to Kelowna’s hosting of the Montana’s Brier in the first part of the year and Country Music Week 2025 and the 2025 CCMA Awards presented by TD in the fall.

We will continue to work with you, our valued members and industry partners, to support our region’s growth and face any challenges that come our way with grit and determination. Through collaboration, and in conjunction with our Strategic Plan and the TDDP, we will seek out solutions and opportunities that promote responsible, sustainable tourism and allow Kelowna and the Central Okanagan to remain one of Canada’s most desirable travel destinations.

“Tourism not only boosts our local economy, but it also enriches the lives of our residents, who share Kelowna’s unique experiences with visitors from around the world. As we look ahead, we will work collaboratively with Tourism Kelowna to attract more major events to our community, while we continue to develop and grow our region’s visitor economy sustainably and responsibly.”

Mayor Dyas | City of Kelowna

Rotary Marsh Park Credit: Darren Hull Studios

THE VALUE OF TOURISM

Tourism is a vital economic driver in the Central Okanagan, producing revenue for local businesses, creating jobs, and generating tax revenue that is reinvested in the region’s communities. Through its work, Tourism Kelowna highlights the remarkable experiences and iconic attractions available in the region to attract visitors, while also promoting the value tourism provides to the local economy and to the quality of life of area residents. The tourism industry is consistently contributing to the economic, social, and cultural well-being in communities across Canada, including here in Kelowna and the Central Okanagan.

“A vibrant tourism sector gives residents pride and awareness of how fortunate we are to be able to call this place home.”

Courtney Koga, Local Entrepreneur Kettle River Brewing Co.

Golf Courses 19 Galleries & Museums 12
Impact Study
*Tourism Kelowna’s 2023 Resident Sentiment Survey **Source: InterVistas 2022-23 Economic
Front cover photo credit: Tugboat Bay beach | Shawn Talbot Printed on recycled paper.
2022-23 ECONOMIC IMPACT SUMMARY** Tourism in Kelowna
TAX CONTRIBUTIONS $141M (62%): Federal Taxes $67M (30%): Provincial Taxes $19M (8%): Municipal Taxes $540M SPENDING BY OVERNIGHT & DAY VISITORS 12,630 TOTAL JOBS GENERATED $598M TOTAL WAGES GENERATED $2.4B TOTAL ECONOMIC OUTPUT $1.2B TOTAL GDP #exploreKelowna | tourismkelowna.com
RESIDENTS
THAT TOURISM IS AN IMPORTANT INDUSTRY IN KELOWNA AND THE CENTRAL OKANAGAN.* 92% Wineries, Breweries, Cideries, and Distilleries 70+ Restaurants & Cafés 500+ Parks, Beaches, & Lakes 300+ Ski Resorts 2
& Central Okanagan $226M
OF
SURVEYED AGREE
SpearHead Winery Credit: Kylie Mae
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