Vancouver needs 10,000 more hotel rooms by 2050, tourism organization says

Destination Vancouver says the city needs to build 10,000 hotel rooms by 2050 to keep up with growing demand.

The tourism organization recently published a new report, highlighting strategies and recommendations to reach this target. It says shifts in the real estate market, including declining demand for office space, has created a window for hotel development.

According to the organization, hotels in the city are currently operating at 80 per cent capacity year-round, and 95 per cent capacity during peak seasons.

A previous report from 2023 found that a lack of new investment and a lack of hotel supply would translate into significant losses for the provincial economy.

Destination Vancouver’s 2023 study on the lack of new hotel capacity demonstrated that without new investment, that lack of hotel supply would translate into significant losses to the provincial economy.

“Vancouver today has the same number of rooms that we had in 2002,” Royce Chwin, President and CEO of Destination Vancouver told 1130 NewsRadio. “That presents a problem as Vancouver continues to invite the world and bring major events to the city.”

The report outlines several recommendations to overcome barriers including pre-zoning for hotel use in transit-oriented areas, and pairing hotels with residential development.

Since 2023, Destination Vancouver and the BC Hotel Association have been operating the Vancouver Hotel Development Task Force to take concrete action on the issue.

“This is about more than hotel rooms—it’s about building a vibrant, resilient city. Hotels are economic engines and social anchors,” Ingrid Jarrett, co-chair of the Task Force with Chwin and the former CEO of the BC Hotel Association, said in a news release. “They support jobs, events, tourism, local businesses, and can enliven neighbourhoods.”

The report says if the 10,000 rooms were built, it would create 5,500 new hospitality jobs, $125 million in annual municipal tax revenue and $78 million in provincial tax revenue.