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Market Report

SW Ontario Hospitality Market Report

3Q 2023

Occupancy Nearly Back to Pre-Pandemic Level;
Rising Travel Demand to Drive Further Recovery

Demand continues to hold. In Southwestern Ontario, key attractions — including lakefronts, national parks, wineries and Niagara Falls —play an important role in the region’s tourism sector. After pandemic restrictions were removed, the metro saw a rapid return of visitors. This pent-up leisure travel demand lifted the occupancy rate above 70 per cent during the summer months in 2022, and is expected to drive a further improvement in peak travel seasons this year. Compared to the 2019 level, the metro’s summer occupancy rate is currently lower, due to lagging demand in the upscale segment. This is likely a byproduct of still-muted corporate travel, resulting from remote meetings curbing demand in the luxury sector. In 2023, the average occupancy rate will likely continue to improve and may reach a similar level seen in pre-pandemic times. 
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