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The economic crisis which we are in has cost many their jobs. The economic crunch has forced large corporations, businesses as well as hotels to downsize its labor force. Inflation has also pushed the cost of operation for hotels higher (Tudor. J .2009). This coupled with dwindling tourist numbers has forced the hotel management to lay off some workers. “I am calling for a boycott and asking guests not to eat, drink or sleep at the Hyatt Regency Vancouver. The boycott means am making a sacrifice as I may lose shifts” said Naden Abenes, protesting reduced hours, understaffing and increased workload. Hotel workers have not been spared by the global meltdown. Increased inflation has resulted in them demanding increased salaries from the hotels. In desperate cases they result to striking, boycotting their duties and employing the “˜go slow’ technique in protest.

The reduced number of hotel staff and the unwillingness of hotel workers to work well have compromised the quality visitors receive when they visit the hotels, and have reduced the chances of repeat business. Coast Garibaldi, a local restaurant has been shut down by the Vancouver Coastal Health citing unsanitary conditions, improper dishwashing and pest infestation, is an example there is understaffing resulting in compromised quality.

When workers publicly protest the working conditions in a certain hotel or site they erode customer confidence in the hotel. When such protests are aired by the media to the world they result in reduced international tourist numbers, this becomes negative publicity of tourism in Vancouver (Cooper,S. The Province). Hyatt worker’s strike has been recorded and posted on YouTube on several channels with views ranging in the thousands. Prospective tourists who have seen the footage will be cautious not to visit this hotel.

Closure of businesses. The global meltdown has forced the closure of small businesses that were stakeholders in the tourism sector. Inflation has pushed up the cost of expenses and the reduced profitability due to reduced number of tourists has forced some businesses to close down (Tudor. J .2009). Prima Taste, a Singapore based restaurant operating in Vancouver closed down. Janchee, and Schnitzelz and Bojangeles, both good restaurants of good repute in Vancouver have also closed down.

With the rampant closures of hotels and restaurants the viability of Vancouver as a tourist destination reduces. (Tudor. J .2009) Tourists prefer a location with numerous hotels and activities for maximum satisfaction. The closures will leave Vancouver with few tourist attractions and hotels operating making it lose customers to other destinations that boast numerous hotels and a buzz of activity such as Hawaii or Africa.

With reduced numbers of tourists, stakeholders have had to share a reduced clientele base. This has sparked a very stiff competition. This competition has led to mergers and formation of cartels in the tourism industry. The establishment of these mergers and cartels has fueled the closure of small businesses, thus reducing the viability of Vancouver as a tourist destination.

Unpredictable business outcome. The economic meltdown of 2007-Present has excited a lot of uncertainty in businesses (Tudor. J .2009). Analysts quote “The only thing we know about the recession is that we don’t know enough.” This uncertainty inhibits proper planning by management at this crucial time, when a recovery plan is needed. Management is faced with an uphill task when it needs financial assistance from banks since it is not sure when tourism will peak and when it will be able to repay its loans. They are left in a stale mate while pressure builds from both micro and macro environments forcing their closure due to inflation.

Banks are also collapsing despite governments efforts to buy out bank debts in an attempt to stabilize the global economy. Olympia and York Enron bank collapsed. This has reduced credit facilities available to tourism stakeholders. These loans could have been used to finance the businesses in the mean time before the economy improves. Without these credit facilities businesses are forced to shut down as soon as their expenses exceed their income.


Vancouver’s tourism industry has been hard hit by the economic meltdown. This has been made worse by its reliance on the United States for majority of its international tourists since the United States is said to be the country worst hit by the recession (Tudor. J .2009).

Vancouver’s tourism will revive since it has a lot to offer tourists especially its scenic beauty that will continue to attract tourists to it. The 2010 winter Olympics will also publicize Vancouver to the whole world, encouraging international tourism. Domestic tourism is sure to grow as the economy gradually improves and the disposable income of citizens increases.

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