Greater Victoria's tourism sector, helped by a falling loonie, is filled with optimism for 2014 after what one industry analyst describes as "five years of misery."
The cheerful mood partly stems from last year's strong results. The average annual occupancy rate for hotels rebounded to the highest level since 2008, said Frank Bourree, Chemistry Consulting principal.
"It's clear that we are experiencing a recovery of the tourism industry since the economic slowdown of 2008," he said Thursday.
Average occupancy for the year was 64.33 per cent, up from 62.25 per cent in 2012.
The average daily room rate climbed by nearly $8 to $128.15 in 2013, he said.
Higher rates moved up the revenue per available room by an average of $7.64. That put hotels in a better financial position and helped some major hotels pay for renovations done in 2013, Bourree said.
Tourism officials are watching the health of the Canadian dollar against the U.S. dollar. The loonie dropped to 89.73 cents Thursday, its lowest level in more than six years.
The tourism industry anticipates the weaker Canadian dollar will bring American visitors to Canada because of the favourable exchange rate.
Along with stronger economic performance in the U.S., Bourree said a weaker dollar will have a "significant impact going forward in 2014, 2015, that will definitely turn the Americans' heads."
The U.S. is the biggest potential international market, he said.
This year starts off with Paul Nursey as the new president and chief executive officer at Tourism Victoria, the destination marketing organization for the region.
"We are very pleased with these year-end results," Nursey said in a statement. "These numbers demonstrate Greater Victoria is well positioned as a destination of choice by visitors and that the region has successfully adapted to changing tastes and demands of global customers."
Upcoming campaigns and events for this year include partnerships with the Victoria Film Festival and the Dine Around and Stay in Town dining event.
Tourism demand is recovering, Nursey said.
"We can't afford to rest on our laurels. At Tourism Victoria, we will be working even harder to position Greater Victoria for long-term, sustained success."
Tourism represents more than just hotels. Transportation companies, whale-watching companies, float-plane tours, museums, restaurants and retail stores and attractions all count on tourist dollars to bolster their bottom lines and create 21,500 jobs locally.
The sector's economic impact is $1.89 billion, says Tourism Victoria.
A record number of passengers — at more 1.55 million —passed through Victoria International Airport last year.
At Ogden Point, 210 cruise ship visits are scheduled this year, starting May 1. Those vessels carry about 650,000 passengers and crew during the season.
A recent analysis for the Greater Victoria Harbour Authority said cruise ships generate about $96 million in the local economy through direct and indirect spending.
