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Niagara Falls has seen a banner year in terms of tourism health. A combination of factors has both hotel and attraction operators reporting revenue increases between 20%-25%.
Factors contributing to the surge of visitors to Niagara Falls range from the strength of the American dollar and economy to the collective marketing efforts put in place by Niagara operators and Canadian tourism outlets. Financial marketing support from the government has never been stronger.
Now is the ideal opportunity for foreign investors to seize a prime investment property in the heart the Niagara Falls tourism district.
Growth in Niagara Falls the facts
- Destination Canada (Canada’s national tourism marketing organization), reports international visits from the United States were up 11.6% in July 2015.
- In Q1 (January - March) border crossings from the U.S. to Ontario increased 5.6%, with same-day crossings up 5.2% and overnight crossings up 6.2%.
- European Market visits were up 7.3 % in July with a significant increase 15% from the UK (strong British pound in relation to the CA dollar)
- Q1 saw a 33% increase in Chinese entry into Ontario
- Ontario consumer insight research points to Niagara Falls as the #1 intended travel destination in Canada for Americans
- Gas prices which are down 23.5% from 2014, affecting likelihood of Canadian travel plans
- When gas is lower AAA reports an increase in driving to Canada from the border states of Michigan, Ohio, New York and Pennsylvania
American’s now have passports
In 2007 when passports became a requirement for American and Canadians to travel over the border, American traffic abruptly dove. At the time researchers figured only 20% of Americans held passports, that number has now increased to 47%, a significant change that has benefited Niagara Falls operators this summer.
The Canadian dollar remains low
It’s not just that more Americans have passports, it’s that their money now goes a lot further in Canada in 2015. The low Canadian dollar is also encouraging Canadians to stay in their own country for vacation purposes.
The Canadian dollar has been hovering around the .75 mark to the American dollar since early 2015.
Ontario marketers are predicting increased spending in Niagara Falls from American, Canadian and foreign markets following the declining dollar. The chart below forecasts visitor expenditures by origin in Niagara Falls (source).
Foreign market continues to increase in Canada and Niagara Falls
Tourism market researchers forecasted long ago the visitor increase Niagara Falls is experiencing from major foreign markets including the UK, China, and South America. Outlets like Destination Canada are the major marketers in these destinations and while they do market the entire country, Toronto and Niagara Falls, in particular, remain key destinations and showpieces in their marketing.
In July, alone Ontario saw an increase in arrivals of 44% from Brazil, 21.2% from Mexico, 10.6% from China and 17.7% from emerging market, South Korea.
These are not the only markets growing in Ontario, strong support remains from the established markets of France, Germany and Australia.
Aggressive marketing campaigns in place from Niagara tourism boards
Aggressive American focused marketing campaigns were launched on the heel of the low Canadian dollar by Niagara Falls Tourism and the Tourism Partnership of Niagara. These campaigns were focused in the four American border states as well as the New York (mid) market. Aggressive marketing campaigns were also launched in Quebec and the greater GTA area. The marketing efforts of these local operators are supported by Canadian Tourism and Ontario Tourism.
Major funding commitments from the province for year round blockbuster events to continue to attract visitors to the region even during off season. These events include Red Bull extreme sports, the Winter Festival of Lights, the New Year's concert and the Niagara Wine Festival.
More information on marketing Niagara Fan be found here in the Tourism Partnerships Business and Marketing Plan for 2015-2016.
Many Niagara Falls tourism operators have chosen to market to the growing Greater Toronto Hotel Association (GTHA) and it’s benefits are showing. Association with this group allows operators to place marketing materials in the CMT Media Group displays found in major Toronto Hotels and keeps their attractions top of mind for hotel staff recommending day trip activities.
Niagara Falls Accommodation Market
stats provided by the City of Niagara Falls
- Rooms 14,643
- Annual Occupancy 56.9%
- Average Daily Rate $143.95
- RevPar $81.91
- Available Room Nights 5,344,695
- Occupied Room Nights 3,041,131
- Rooms Revenue $437,770,800
Hotels for sale Niagara Falls, Motels for sale Niagara Falls
Two accommodation properties have recently hit the market along Stanley Avenue in the heart of the Niagara Falls tourism district. The neighbouring properties of Hotel 6 and Niagara Courtside Inn are located at 5700 and 5640 Stanley Avenue. Stanley Avenue is an easily accessible and busy commercial route located .5km from the major 420 Highway and a short walk (2.2km) from the Falls, Clifton Hill and the Victoria centre tourist area.
5700 Stanley Ave, Niagara Falls, ON
Niagara Courtside Inn
click here to view the full listing.
5640 Stanley Ave, Niagara Falls, ON
To discuss investment in a Niagara Falls hospitality property connect with me below or you can visit my listings page for further Niagara Falls commercial real estate opportunities.