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The
voice of Toronto's hotel industry, the Greater Toronto Hotel
Association represents 160 hotels,
with approximately 34,000 guest rooms and more than 32,000 full time jobs.
Founded in 1925, the GTHA enables competing hotels to work together on issues of
public policy
and charitable ventures, provides information and service to its members,
and advocates to raise their profile and prosperity as a vital component of Toronto's tourism industry.
GREATER TORONTO HOTEL ASSOCIATION
2008 - 2009
EXECUTIVE COMMITTEE
| CHAIR |
Rekha Khote |
Starwood Hotels & Resorts Worldwide |
| VICE-CHAIR |
Andy Loges |
Toronto Marriott Bloor Yorkville |
| SECRETARY / TREASURER |
George Camalier |
Toronto Marriott Eaton Centre |
| EXECUTIVE COMMITTEE MEMBER |
Robert Housez |
Delta Meadowvale Resort & Conference Centre |
| EXECUTIVE COMMITTEE MEMBER |
Dermot McKeown |
Radisson Plaza Admiral Hotel – Toronto Harbourfront |
DIRECTORS
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| Janak Bhawnani |
Novotel North York |
| Scott de Savoye |
Holiday Inn Select Toronto Airport |
| Tony Dunn |
Sheraton Centre Toronto |
| Josef Ebner |
Delta Chelsea |
| Mark Ive Renaissance |
Toronto Hotel Downtown |
| David Kelley |
Soho Metropolitan |
| Robert Lamoureux |
Comfort Suites City Centre |
| David Ogilvie |
Westin Harbour Castle |
| Beth K. Osborne |
Residence Inn Toronto Downtown Entertainment District |
| Renaud Payette |
InterContinental Toronto Centre |
| Craig Reaume |
The Fairmont Royal York |
| Sohail Saeed |
Holiday Inn Toronto Airport East |
| Armin Schroecker |
Toronto Hilton |
| Michael Singer |
Novotel Toronto Centre |
| Martin Stitt |
Delta Toronto Airport West |
| Paul Verciglio |
Park Hyatt Toronto Hotel |
| Nick Vesely |
Sutton Place Hotel |
| Jeff Waters |
Toronto Airport Marriott |
| Kelly Anne Yeaman |
Courtyard by Marriott Toronto Airport |
| Dimitrios Zarikos |
Four Seasons Hotel |
| Rawi Zayadi |
Holiday Inn Markham |
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GTHA WELCOMES NEW TOURISM MINISTER
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Peter Fonseca (centre), Ontario’s newly appointed Minister of Tourism, joined members of the Greater Toronto Hotel Association, including GTHA President Terry Mundell (left) and Board Chair Rekha Khote (right) at the association’s annual holiday luncheon on December 6, 2007. Minister Fonseca told the gathering he is “committed to moving tourism forward” and advised GTHA members that they should “see me as a champion for you at the cabinet table.” He noted that tourism was specifically referenced in his government’s Speech from the Throne on November 29, including plans to conduct a comprehensive competitiveness study in the sector. Mundell has scheduled meetings with the Minister and his staff to further discuss key issues and strategies in areas outlined in the Throne Speech. This includes commitments for more investment in tourism marketing, increased marketing activities for events such as Luminato to help build them into larger tourist attractions, improving access at border crossings, and making progress on the government’s MoveOntario 2020 transportation initiative to build a dedicated transportation link to Pearson International Airport.
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PROGRESS ON GTHA STRATEGIC PLAN
Moving ahead on the Strategic Plan approved by the Board, the Greater Toronto Hotel Association is conducting regional meetings with members this month. A review of the GTHA’s by-laws and governance structure is also underway, and membership will be consulted on this initiative as well. Suggestions for improvements have included changing the association’s committee structure to more of an ad hoc approach, to give members an opportunity to engage on specific issues in a shorter timeframe. Other activities planned for the weeks ahead include Tourism Toronto presenting its business plans to the GTHA, to ensure the two organizations are synchronized and complementing each other’s efforts, and development of a new communications strategy for the GTHA, to demonstrate the association’s leadership in the Greater Toronto Area and in the tourism industry.
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KUDOS FOR GREY CUP SUCCESS
By all accounts, Toronto’s hosting of the Grey Cup in November was a tremendous success, and the city’s hoteliers are being credited with playing a significant role in that success. The GTHA was on the organizing committee for the week-long celebration, working with the Canadian Football League and other partners. Many member hotels provided facilities and staff for various events and festivities, and the excellent hospitality was cited as a major contributor to the overall positive results. Toronto had not hosted the Grey Cup since 1992, and based on the results from this year, momentum is already building to hold the event here again within the next few years.
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CHECKING IN: FACTS AND FIGURES
Report of Rooms Operations by Location - Q3 2007
| Location |
Occupancy Percentage* |
Average Daily Rate |
Revenue/Available Room |
| |
2007 |
2006 |
+/- |
2007 |
2006 |
+/- |
2007 |
2006 |
+/- |
Total GTA |
73.2% |
73.8% |
-0.6 |
$134.39 |
$138.52 |
-2.9% |
$98.39 |
$102.17 |
-3.7% |
Downtown Toronto |
77.8% |
78.6% |
-0.7 |
$170.00 |
$180.22 |
-5.7% |
$132.34 |
$141.61 |
-6.5% |
Toronto Airport |
69.3% |
71.2% |
-2.0 |
$112.87 |
$111.11 |
+1.6% |
$78.19 |
$79.14 |
-1.2% |
GTA West |
70.1% |
68.5% |
+1.6 |
$101.62 |
$103.59 |
-1.9% |
$71.20 |
$70.97 |
+0.3% |
GTA East/North |
70.8% |
72.1% |
-1.3 |
$112.19 |
$111.86 |
+0.3% |
$79.42 |
$80.66 |
-1.5% |
*Occupancy variance between current & previous year is reported as a point change, not as a percentage
- The third quarter of 2007 witnessed decline in occupancy levels within the overall GTA compared to the same period in 2006. Furthermore, supply outpaced demand during Q3 2007, with notable openings including the Hazelton Hotel in Downtown Toronto and Sandman Hotel at Toronto Airport.
- Hardest hit was the Downtown Toronto market, where Revenue per Available Room declined 6.5%, primarily because of a 5.7% decline in Average Daily Rate. The one market that appeared to show growth in demand activity was the GTA West, where occupancy levels increased by 1.6% over Q3 2006. Hotel building has slowed significantly from the 14% growth increase in 2006 in the GTA West.
- The Greater Toronto Airport Authority identified movement in the range of 10.5 million passengers during the first 9 months of 2007, growing 2.0% over the 10.3 million passengers who arrived in the same period of 2006.
- Consumer spending is expected to remain strong given the increased purchasing power provided by federal income tax cuts, along with the reduction in GST to 5%. Anecdotally, the strength of the Canadian dollar is being blamed for reducing tourism growth, yet the Canadian economy continues to move forward, with the Conference Board of Canada estimating over 2.6% GDP growth for the Province in 2008. PKF is forecasting a strong fourth quarter for the GTA, and the overall market is forecast to end 2007 at 66% occupancy with a $138 Average Daily Rate, increasing 1% in occupancy and 3% in Average Daily Rate by year¬end 2008.
Figures and analysis provided by PKF Consulting Inc.
Miscellaneous & Sundry: Around the Industry
- Congratulations to Easton’s Group of Companies, and their President Steve Gupta, on receiving the Hotelier Magazine Pinnacle Award for Regional Company of the Year.
- General Managers at GTHA member hotels: Anup Israni, Renaissance Toronto Airport; Francois Lavigueur, Novotel Toronto Airport; Jeff Waters, Toronto Airport Marriott; Pascal Forotti, InterContinental Toronto Yorkville; Vincent Cotte, The Old Mill Inn and Suites; Ronit Keith, Courtyard by Marriott Downtown Toronto; Steven Harrison, Hilton Garden Inn Mississauga; Suzanne Gittens, Comfort Inn Markham; Norman Proven, Travelodge Toronto Airport; Jim Kerstens, Holiday Inn Oakville Centre.
- GTHA welcomes a new member: Park Inn, 30 Vice Regent Blvd (GM Betty Liu).
- A GTHA member hotel has a new name: the Crowne Plaza Toronto Airport (formerly Park Plaza Toronto Airport).
The voice of Toronto's hotel industry, the Greater Toronto Hotel Association represents more than 170 hotels, with approximately 34,000 guest rooms and more than 32,000 full time jobs. Founded in 1925, the GTHA enables competing hotels to work together on issues of public policy and charitable ventures, provides information and service to its members, and advocates to raise their profile and prosperity as a vital component of Toronto's tourism industry. The GTHA can be reached at 207 Queen’s Quay West, Suite 590, Toronto, Ontario, M5J 1A7. Phone: (416) 351-1276. Fax: (416) 351-7749. E-mail gtha@gtha.com
The Front Desk – Issue 36 September/October 2007
CHECKING IN: FACTS AND FIGURES
Report of Rooms Operations by Location
SECOND QUARTER 2007
| Location |
Occupancy Percentage* |
Average Daily Rate |
Revenue/Available Room |
| |
2007 |
2006 |
+/- |
2007 |
2006 |
+/- |
2007 |
2006 |
+/- |
Total GTA |
69.1% |
70.1% |
-1.0 |
$139.97 |
$138.83 |
+0.8% |
$96.67 |
$97.27 |
-0.6% |
Downtown Toronto |
74.8% |
75.3% |
-0.5 |
$178.01 |
$175.62 |
+1.4% |
$133.16 |
$132.17 |
+0.8% |
Toronto Airport |
71.4% |
70.9% |
+0.5 |
$117.22 |
$116.62 |
+0.5% |
$83.75 |
$82.68 |
+1.3% |
GTA West |
64.9% |
64.3% |
+0.6 |
$105.67 |
$105.66 |
+0.0% |
$68.59 |
$67.98 |
+0.9% |
GTA East/North |
61.3% |
65.3% |
-4.0 |
$113.65 |
$112.72 |
+0.8% |
$69.71 |
$73.65 |
-5.3% |
*Occupancy variance between current & previous year is reported as a point change, not as a percentage
- During the second quarter of 2007, the overall GTA market witnessed a slight decline in occupancy levels, unlike other major markets further west, including Winnipeg, Edmonton, Calgary and Vancouver.
- Average Daily Rates throughout the GTA have improved slightly,with Downtown Toronto witnessing the strongest rate increase over 2006. With a great deal of luxury hotel supply rumoured to be entering the Downtown submarket over the next few years, this level of confidence is a positive indicator for the city.
- During the first 6 months of 2007, the Greater Toronto Airport Authority calculated movement in the range of 15.3 million passengers, as compared to 15.1 million in the same period of 2006. With more rooms available throughout the GTA during the second quarter, and given the tendency of conferences and conventions in the GTA to occur during spring months, visitor increases can be attributed to the meeting/conference segment. Nevertheless, according to Tourism Toronto, the GTA attracted 14 city-wide events representing 243,000 room nights in 2006, yet city-wides are down to 11 in 2007, generating 154,000 room nights. Transient leisure demand also remains weak in the Toronto market, which combined with the decline in city-wide events, may account for the overall decline in RevPAR performance within the GTA.
Figures and analysis provided by PKF Consulting Inc.
NEW REGULATIONS AFFECT HOTELS
A number of new regulations have recently been implemented that will have an impact on the way hotels do business. GTHA members should be aware of these new rules:
- Accessible Customer Service Standards – Hotels are now legally required to make customer services operations accessible to people with disabilities.
- Smart Serve Training – Starting on January 1, 2008, all facilities with liquor licences must ensure that staff members successfully complete server training within 60 days after being hired.
- Gift Cards – Expiry dates on gift cards (including hotel promotions) are prohibited as of October 1, 2007, unless terms and conditions are disclosed clearly and prominently.
- Private Security – As of August 23, 2007, all private security practitioners, including in-house security staff, must be licensed. Existing staff have one year to obtain their licences
- Property Taxes for Urban Condominium Hotels – The Municipal Property Assessment Corporation has been instructed to assess urban condominium hotels in the same manner as traditional hotels, based on the income capitalization approach to valuation.
The GTHA was consulted and actively participated in the development of these new regulations.
PARTY PLATFORMS ACKNOWLEDGE TOURISM INDUSTRY
As the Ontario election campaign moves toward its conclusion on October 10, 2007, tourism has not emerged as a central issue for any of the political parties. However, the industry has not been completely ignored. Following are highlights from party platforms pertaining to the tourism sector.
- The Liberal platform includes one specific tourism commitment: “Working with the tourism industry we will conduct a comprehensive competitiveness study, increase funding for festivals and events, and enhance marketing efforts to promote Ontario destinations.”
- The Progressive Conservative platform includes pledges to increase the province’s tourism advertising budget, spending at least 75% of the tourism budget on marketing. It also pledges to: improve Canada-U.S. border crossings, including finding an alternative to the new American passport requirements; work in partnership with tourism operators to open the door to smaller businesses and volunteer organizations; improve training for tourism workers and to clarify regulations and legal terms in the industry; top up funding for the Ontario Cultural Attractions Fund; provide stable funding for the tourism sector, with five- and ten-year commitments; and make sensible, short-term investments to help sustain key events and attractions, such as the Luminato Festival of Arts and Creativity.
- New Democratic Party platform commitments do not mention tourism.
- The Green Party platform includes a promise to “protect the natural heritage needed to sustain and enrich Ontario’s eco-tourism industry.”
Regardless of which party wins election, the GTHA will work quickly to establish and maintain strong relationships with the new Minister of Tourism.
MISCELLANEOUS & SUNDRY: AROUND THE INDUSTRY
- The GTHA, as part of a coalition of industry, labour and education groups, participated in news conference to release a new report by the Conference Board of Canada, forecasting a serious shortage of skilled workers in Ontario. The report points to some potential solutions, such as better education and training of under- represented groups. The coalition is calling on Ontario's political leaders to commit to establishing a comprehensive provincial skills strategy.
- The GTHA welcomes a new member: Super 8 Toronto Downtown (General Manager Allain Tan).
- New General Managers at GTHA hotels: Corinne Oatman-Howell, Sandalwood Suites; Alex Hernandez, Best Western Toronto Airport West; Bill Brown, Crowne Plaza Don Valley; Guy Lucas, Novotel Toronto Airport; Ralph Schwingers, Waterside Inn.
The voice of Toronto's hotel industry, the Greater Toronto Hotel Association represents more than 170 hotels, with approximately 34,000 guest rooms and more than 32,000 full time jobs. Founded in 1925, the GTHA enables competing hotels to work together on issues of public policy and charitable ventures, provides information and service to its members, and advocates to raise their profile and prosperity as a vital component of Toronto's tourism industry. The GTHA can be reached at 207 Queen’s Quay West, Suite 590, Toronto, Ontario, M5J 1A7. Phone: (416) 351-1276. Fax: (416) 351-7749. E-mail gtha@gtha.com
The Front Desk – Issue 34 March 2007
CHECKING IN: FACTS AND FIGURES
Report of Rooms Operations by Location
FOURTH QUARTER 2006
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| Location |
Occupancy Percentage* |
Average Daily Rate |
Revenue/Available Room |
| |
2006 |
2005 |
+/- |
2006 |
2005 |
+/- |
2006 |
2005 |
+/- |
Greater Toronto Area |
62.4% |
62.8% |
-0.4 |
$133.56 |
$129.98 |
+2.8% |
$83.29 |
$81.61 |
+2.1% |
Downtown Toronto |
67.0% |
67.7% |
-0.7 |
$160.96 |
$154.30 |
+4.3% |
$107.86 |
$104.43 |
+3.3% |
Toronto Airport |
63.5% |
63.0% |
+0.5 |
$115.72 |
$113.31 |
+2.1% |
$73.44 |
$71.33 |
+3.0% |
GTA West |
56.3% |
55.7% |
+0.6 |
$107.20 |
$104.88 |
+2.2% |
$60.38 |
$58.42 |
+3.4% |
GTA East/North |
58.5% |
59.5% |
-1.0 |
$115.78 |
$113.03 |
+2.4% |
$67.67 |
$67.22 |
+0.7% |
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*Occupancy variance between current & previous year is reported as a point change, not as a percentage
- Overall accommodation demand in the GTA grew by over 4% in 2006, despite a slight decrease in occupancy levels in the 4th quarter compared to the same period in 2005.
- Over the full year, supply growth outpaced demand growth in the GTA, yet final occupancy levels reached 66%, one point above the national average. Furthermore, average daily rates surpassed 2002 levels, reaching $135 at year-end 2006, and RevPAR in the total GTA market increased $3 over 2005, reaching $89. In 2007, PKF projects further demand growth of 2.5% in the GTA, which will exceed overall growth in GTA supply. However, the GTA East/North submarket is projected to see higher than average supply growth, particularly in Vaughan.
- According to the Greater Toronto Airport Authority, total passenger traffic at Pearson International Airport in 2006 was 31 million, , an increase of 3.5% over 2005. Nevertheless, the strength of the Canadian dollar, the WHTI initiative and rising gas prices will continue to support stronger domestic rather than U.S. or International travel growth. By year-end 2006, U.S. visits continued to fall, albeit at a slower rate than 2005, according to the Conference Board of Canada, with the largest decline seen in same-day travel to the GTA. Domestic visitation grew almost 4% in 2006, according to Conference Board year-end forecasts, as 2006 was a strong convention year for the GTA. With GDP growth accelerating and unemployment rates falling in Europe, international travel was also increasing by year-end 2006.
Figures and analysis provided by PKF Consulting Inc.
Message from the New President
It goes without saying that the Greater Toronto Hotel Association has entered a new chapter. As the new President of the GTHA, I am looking forward to working with our members to enhance the hotel industry in a variety of ways.
Hotels are a vital component of our economy and our social fabric, and we will be spending much of our time working strategically to ensure this message gets across to our many stakeholders, including government at all levels, the media and the public at large. We want to make sure hotels are recognized for their enormous contributions to our community, both fiscally and socially.
Over the years, the GTHA has succeeded in making its voice heard. Now is the time to take our industry the next level, to really drive home the vital importance of a healthy hospitality sector.
More people need to hear about the good work hotels are doing. In addition to being a key economic contributor – and with $2.2 billion in economic activity annually and more than 30,000 jobs, the economic contribution is significant – Toronto-area hotels are also important to the city’s quality of life. For example, hotels are an active training ground in a wide range of fields, especially for new Canadians. Hotels help the needy, by donating surplus food, linens and furniture. Hotels provide crucial infrastructure in a crisis – such as 9/11, when they supplied thousands of meals, beds and blankets to stranded airline passengers. Hotels are an integral part of the tourism sector, supporting the city and province’s many attractions. And hotels are a home-away-from-home for family and friends visiting from out of town. For many visitors, hotels are the first point of contact for our city, and it is imperative that hotels are able to make and sustain a good impression.
Hotels need to be both viable and vibrant. Our ongoing success depends on support from the community we serve, and we, as an industry, have to work together to make sure we continue to earn that support.
This is an exciting time for the Greater Toronto Hotel Association – a tremendous organization in a vital industry. Through strategic planning and exceptional delivery, we have every reason to believe our industry will soar to even greater heights in the years ahead.
WELCOME DAVID WHITAKER TO TOURISM TORONTO
The GTHA welcomes David Whitaker as the new President and CEO of Tourism Toronto. Recognized for his skill in international tourism marketing, he brings a wealth of experience and tourism acumen to our city, building on a career that includes senior positions with the Greater Miami Convention and Visitors Bureau for 17 years. This is an important appointment for Toronto’s hospitality industry, and the GTHA looks forward to a long and productive relationship, working together to grow the economic and social contribution tourism makes to the region.
BUDGETS GOOD NEWS FOR TOURISM
The Foreign Convention and Tour Incentive Program – providing GST rebates or exemptions for convention, group and tour business – was a key measure in the federal Budget delivered March 19, and the GTHA publicly commended Finance Minister Jim Flaherty for listening to the tourism industry. In pre-Budget submissions, the GTHA and other tourism industry stakeholders pointed to the GST exemption/ rebate as an important factor in attracting visitors. The GTHA was also pleased with measures in provincial Finance Minister Greg Sorbara’s Budget March 22, including reductions in Business Education Tax rates and a four-year cycle for property tax reassessments – both of which should help ease the financial burdens facing our hotel community. We also welcomed the announcement of $5.5 million in funding for Luminato – Toronto Festival of Arts and Creativity, which we are hoping becomes an important event on Toronto’s tourism calendar. Less positively, while both Budgets provided some help for our industry, we were hoping to see new funding directly for tourism marketing. The GTHA will continue to urge both levels of government to recognize that investments in tourism pay dividends throughout the economy.
DMF TRADEMARK
The Greater Toronto Hotel Association has taken steps to trademark its Destination Marketing Fee (DMF) to ensure that the integrity of the program is maintained. The DMF was spearheaded by the GTHA as a way to collect funds for the direct purpose of destination marketing. Measures are in place to protect both consumers and hoteliers, and to ensure that the DMF is used only for its intended purpose.
MISCELLANEOUS & SUNDRY: AROUND THE INDUSTRY
- Members are reminded of the upcoming Greater Toronto Hotel Association Annual General Meeting: Thursday, May 3, 2007, 2:30 p.m., at the Diesel Playhouse, 56 Blue Jays Way.
- Recognizing the importance of high-quality training to enhance Toronto’s reputation for world-class hospitality, the GTHA is partnering with four post-secondary institutions. Endowments of $25,000 – to be matched by the provincial government – are being contributed by the GTHA to each of the following schools of hospitality: Ryerson University, Humber College, George Brown College and Centennial College.
- Working with provincial hospitality associations, the GTHA has been successful in convincing the government to remove the requirement for licensing in hotel lobbies. For more details on licensing requirements, see the Alcohol and Gaming Commission of Ontario (AGCO) website at www.agco.on.ca.
- New General Managers at GTHA-member hotels: Scott Tye, Fairfield Inn & Suites by Marriott Toronto Airport; Neville Ira-Gould, Hampton Inn & Suites Mississauga; Heidi Wengle, Grand Hotel; Terrance Ponniah, Hilton Garden Inn Vaughan; Rajeev Khanduja, Hilton Garden Inn Toronto Oakville; Tony Sabourin, Comfort Inn North York; Patrick Regina, Hilton Garden Inn Markham; Candice Sutherland, Best Western Toronto Airport West.
- The GTHA welcomes a new member: Residence Inn Downtown Toronto (GM Beth Osborne).
- Two GTHA hotels have re-flagged: Westin Bristol Place Toronto Airport (formerly Wyndham Bristol Place); Delta Markham ( formerly Radisson Markham)
The voice of Toronto's hotel industry, the Greater Toronto Hotel Association represents more than 160 hotels, with approximately 34,000 guest rooms and more than 32,000 full time jobs. Founded in 1925, the GTHA enables competing hotels to work together on issues of public policy and charitable ventures, provides information and service to its members, and advocates to raise their profile and prosperity as a vital component of Toronto's tourism industry. The GTHA can be reached at 207 Queen’s Quay West, Suite 590, Toronto, Ontario, M5J 1A7. Phone: (416) 351-1276. Fax: (416) 351-7749. E-mail gtha@gtha.com.
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