The summer sun bathes the Okanagan Valley in golden light, but something’s missing this year: tourists. The familiar hum of activity—packed patios, bustling beaches, and queues at local attractions—has noticeably dimmed in what many business owners are calling one of the most challenging seasons in recent memory.
“I’ve been running my wine tour company for 12 years, and I’ve never seen bookings this slow,” says Melissa Graydon, owner of Vine Adventures in Kelowna. “We’re down almost 30% compared to last summer, and that’s after we already adjusted our expectations following the wildfires last year.”
Tourism in the Okanagan region has historically been a powerhouse economic driver, generating over $2 billion annually in pre-pandemic years according to data from Thompson Okanagan Tourism Association. The area’s stunning lakes, renowned wineries, and outdoor recreation options typically draw visitors from across Canada, the United States, and internationally. But 2024 is proving to be an anomaly.
Economic pressures appear to be the primary culprit. With inflation putting pressure on household budgets nationwide and mortgage rates remaining elevated, many Canadian families are scaling back discretionary spending—with vacation plans often the first casualty. The Bank of Canada‘s recent interest rate cuts have come too late to influence summer travel planning for most families.
“People are watching every dollar,” explains Darren Howes, who operates a family restaurant in Penticton. “We’re seeing customers who used to come in three or four times during their vacation now limiting themselves to maybe one special dinner. The rest of the time, they’re grabbing groceries and eating at their rental.”
The slowdown isn’t just affecting small operators. Major hotels throughout the region report occupancy rates down 15-20% compared to seasonal averages. Tourism Kelowna confirms that visitor center inquiries have dropped significantly, suggesting fewer travelers are even making it to the planning stage for Okanagan getaways.
Weather patterns have complicated matters further. While British Columbia has avoided the catastrophic wildfires that devastated parts of the province in 2023, lingering concerns about air quality and fire risk appear to be influencing travel decisions. The psychological impact of last year’s emergency evacuations has created a perception challenge that tourism officials are struggling to overcome.
“We’ve spent considerably on marketing campaigns emphasizing our clear skies and safety,” notes Ellen Matthews of the Thompson Okanagan Tourism Association. “But changing those perceptions takes time, especially when people are making more cautious travel decisions overall.”
Adding to these challenges is the broader competitive landscape. Post-pandemic travel patterns show many Canadians opting for international destinations after years of restrictions. Statistics Canada data shows outbound international travel has rebounded strongly, with many vacation dollars now flowing to destinations outside the country rather than supporting domestic tourism.
For businesses that rely on a strong summer season to carry them through the leaner winter months, the implications are serious. Many have already reduced staff hours or postponed planned expansions. Some smaller operators face existential questions about their long-term viability if this represents a multi-year trend rather than a one-season anomaly.
The ripple effects extend beyond the obvious tourism sector. Construction projects for new hotels and attractions have slowed, and the real estate market—long buoyed by vacation property purchases—has cooled significantly. Local producers who supply restaurants with everything from fresh produce to craft beverages report declining wholesale orders.
“Our tasting room visits are down about 25%, and our restaurant accounts have reduced their standing orders,” says Vincent Plamondon of Hillside Orchards. “We’re shifting more toward retail distribution just to move product, but the margins are much thinner there.”
Local government officials have taken notice. Several municipalities have launched “shop local” initiatives and expanded community events programming to encourage regional visitors. Some are considering tax relief measures for tourism-dependent businesses if the slowdown continues into next year.
Not all sectors are feeling equal pain. Budget accommodations report better performance than luxury options, suggesting visitors are still coming but spending more cautiously. Outdoor recreation sites with minimal entry fees, such as provincial parks, are seeing steady traffic, while higher-priced guided experiences struggle.
“People still want the Okanagan experience, but they’re being selective,” observes tourism consultant Jamie Patterson. “They might skip the helicopter wine tour but still visit wineries independently. They’re hiking rather than booking guided adventures. The money is being spent differently.”
Some innovative businesses are adapting quickly. Several wineries have introduced lower-priced tasting options and flexible tour packages. Restaurants have expanded happy hour programs and family meal deals. Adventure outfitters have created shorter, more affordable excursions to capture budget-conscious travelers.
Looking ahead, industry insiders offer mixed forecasts. Some believe this represents a temporary correction after several boom years following the pandemic restrictions. Others worry it signals a more fundamental shift in travel patterns that could require structural changes to the region’s tourism approach.
The coming fall season—traditionally a secondary peak for the region with wine harvest festivals and autumn activities—will provide crucial data points. Early booking indicators for September events show modest improvement, offering a glimmer of hope that the current slowdown may be easing.
For now, Okanagan businesses are doing what they’ve always done: adapting to changing conditions while showcasing the natural beauty and experiences that have made the region a premier destination. The question remains whether economic headwinds or shifting travel preferences will force more permanent changes to an industry that has defined the Okanagan for generations.
