The pristine lakes and sun-soaked vineyards of British Columbia’s Okanagan Valley are experiencing something unusual this summer: plenty of empty seats. Tourism operators across the region report visitor numbers falling well short of expectations, creating ripple effects through local economies dependent on summer dollars.
“We’re running about 15 to 20 percent below last year’s numbers,” says Jennifer Horsnell of Tourism Kelowna, tracing her finger along a visitor tracking chart during our meeting at her downtown office. “And it’s not just fewer people—those who do come are spending noticeably less.”
The downturn marks a significant shift for a region that typically welcomes over 3.5 million visitors annually, according to Destination BC statistics. What makes this situation particularly concerning is how it contradicts post-pandemic recovery patterns seen elsewhere in Canadian tourism markets.
For Melissa Dodd, who operates kayak tours on Okanagan Lake, the change is evident daily. “Last summer, we were booking five, sometimes six tours a day. This year, we’re lucky to fill three,” she explains while organizing life jackets at her lakefront kiosk. “Folks who do come are choosing our shorter, cheaper options instead of full-day experiences.”
Economic pressures appear to be the primary culprit. With inflation still pinching household budgets and interest rates remaining elevated, discretionary spending on vacations has become a luxury many Canadian families are reconsidering. Bank of Canada data shows consumer confidence dipping throughout early 2024, with travel intentions particularly affected.
Rob Gibson, who has owned the Lakeview Motel for twelve years, says he’s feeling the squeeze from all directions. “My costs to operate keep climbing—utilities, staff wages, insurance—but I can’t raise rates when people are already hesitant to book.” Gibson notes his midweek occupancy has fallen to around 60 percent, compared to near-capacity levels in previous summers.
The spending pattern changes are equally telling. Tasting rooms at local wineries report fewer visitors purchasing premium bottles, while restaurants observe more shared appetizers and fewer multi-course meals. This cautious spending represents the new reality tourism operators are grappling with across the valley.
Climate factors have compounded economic challenges. After last year’s devastating wildfire season that blanketed parts of the province in smoke, many potential visitors made alternative plans for 2024. Though this summer has seen better air quality conditions, the psychological impact of last year’s fires appears to have lingered in travelers’ decision-making.
Thompson Okanagan Tourism Association (TOTA) data reflects this reality, showing regional accommodation bookings down nearly 18 percent compared to the same period last year. These figures align with provincial tourism forecasts that predicted a potential cooling period following the post-pandemic surge.
“What we’re seeing is the intersection of several factors creating a perfect storm for tourism operators,” explains Dr. Marsha Wilson, tourism economist at UBC Okanagan. “Economic pressures, lingering wildfire concerns, and changing travel patterns as people readjust their spending priorities in uncertain times.”
The impact extends beyond tourism businesses themselves. Seasonal employment opportunities have decreased, affecting summer income prospects for many local residents and students. Municipal governments are also watching closely, as reduced tourism activity impacts tax revenues that fund community services.
Not all segments are equally affected, however. Higher-end resorts and wineries catering to wealthy visitors report more stable numbers, suggesting a bifurcation in the tourism market. Those catering to middle-income travelers are bearing the brunt of the downturn.
Local businesses are responding with unprecedented mid-season promotions. Wine tour operators have introduced weekday discounts, hotels are bundling experiences with accommodations, and restaurants have expanded happy hour offerings. These adaptations reflect the industry’s agility but also its vulnerability.
“We’ve never offered 20 percent off tastings in July before,” admits Sarah Pritchard of Panorama Vineyards. “But you have to meet customers where they are financially if you want to keep the doors open.”
Provincial and regional tourism authorities have responded by shifting marketing dollars toward closer markets. Rather than courting international tourists, campaigns now target Vancouver, Calgary and Edmonton residents for shorter getaways, highlighting affordability and proximity.
For communities like Peachland, Summerland and Osoyoos, where tourism represents a significant economic pillar, the immediate challenge is weathering this season while planning for potential longer-term shifts in visitor patterns.
Mayor Cindy Fortin of Peachland notes that council is already discussing diversification strategies. “Tourism will always be important to us, but this summer is a wake-up call that we need to strengthen other economic sectors as well,” she said during a recent community economic forum.
As August approaches—traditionally the peak of Okanagan’s tourist season—operators remain cautiously hopeful for a late-season surge. Weather forecasts predict warm, clear conditions through September, potentially extending the season for businesses trying to make up for early-summer shortfalls.
For now, the iconic experiences that define Okanagan summers—lakeside patios, orchard tours, and wine tastings—continue with a little more elbow room than usual. The question remains whether this represents a temporary adjustment or the beginning of a new normal for one of Canada’s premier tourist destinations.
