EDMONTON — The decline in oil prices has left its mark on Alberta cities such as Fort McMurray and Peace River, which have been facing lower RevPAR and occupancies, reports the Edmonton Journal.
“It was very difficult to find a room at times, but now you can shoot a cannon through them,” says Terry Hartz, VP of Operations at Sawridge Group, which operates hotels in Western Canada. He told the news outlet that the company has been forced to cut labour by 10 to 40 per cent in those affected communities.
Dave Kaiser, president and CEO of the Alberta Hotel and Lodging Association, says RevPAR across Alberta was down about 23 per cent in October. “You take a city like Calgary that, going back a year and a half ago, was the top-performing hotel market in Canada and now it’s mid-pack or below,” Kaiser says. “Most of that is due to the drop-off in corporate travel.” [edmontonjournal.com]