'Leisure up, business is still down': Calgary works to fill traveller gap in wake of downturn

Naheed Nenshi says Calgary has to continue its efforts to draw more tourists as a way to make up for a continued dip in the number of business travellers visiting the city, but he isn't convinced a new arena would make much of a difference.

Last month, Tourism Calgary reported to city council that 850,000 fewer visitors came to Calgary last year, down from 8.05 million in 2015 a 10.5 per cent drop largely because of the slump in the oil and gas sector.

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Speaking at the Tourism Calgary annual general meeting Wednesday, CEO Cindy Ady says things are starting to turn around, but a full recovery is complicated by the fact that Calgary hotels have traditionally relied on business travellers for about 25 per cent of their occupancy.

In most cities, that figure is closer to 11 per cent, she said.

"Leisure is up, business is still down," she said.

'Punching below our weight'

Nenshi said with more hotel rooms now available during the weekdays, there's an opportunity to fill them with leisure travellers.

"I actually believe that because we've been so reliant on the business traveller for so long, that we are punching far below our weight on the tourist," he said.

"Just look at the natural surroundings, look at the amazing urban vibe of Calgary this business should be much bigger than it is."

Ady says Calgary hopes to piggy-back on the popularity of Banff, where rooms are booking up fast for the summer tourist season.

She says Tourism Calgary is promoting the city as the place to stay while making day trips to the mountain sites.

The agency is also micro-targeting its resources to attract U.S. travellers, primarily from three states New York, California and Texas while also promoting the city to markets including Mexico, China, Japan, South Korea, Germanyand England.

Arena needed?

Ady also spoke about the need for "infrastructure assets" to increase tourism.

"We've been out advocating for thenew arena," she told those gathered, adding shedoes not want Calgary to be part of Edmonton's regional market.

"I really want to know that we have the assets that we need to maintain a robust regional market, because that's over 60 per cent of our market. It's really a market worth pursuing," Ady said.

Nenshi, however, said an arena is a "relatively minor" draw.

He told those gathered "with all due respect, it's not about building a facility where you get, you know, oneRihannaconcert a year.

"It is about a cultural shift, a cultural change in how we think about what we're capable of and what we can actually do together," he said.

Nenshi thinks Calgary is losing a handful of concerts a year to Edmonton.

"It's more to Rogers Place because they're in a honeymoon phase right now, but even then it might be 10, even maybe 20 if you count GarthBrooks, nights a year. Twenty nights are not going to change your tourism picture."

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