Why Rental Demand Remains Strong in Calgary and Edmonton

Calgary's Growth in Tourism: Why Are There Still So Few Hostels?

Update The Unmet Demand for Hostels in Calgary Despite Calgary's rising popularity as a tourist destination, it is astounding to find that the city currently has only a single operational hostel. While the local population is stretching towards two million and city officials project ambitious growth in the tourism sector, the lack of affordable accommodations for budget travelers, particularly hostels, raises significant questions about Calgary's hospitality landscape. Why the Shortage? Hostelling International Canada has been a staple in Calgary since 1976, and Wicked Hostels, the city's only other alternative, is presently undergoing construction, meaning it has been unable to accommodate guests since late 2024. The recent efforts to stimulate the tourism sector aim to drive visitor numbers to a staggering 8.7 million by 2035, but the very foundation beneath this projected growth—the availability of diverse accommodation—is lacking. This shortage is perplexing when considering Calgary's close proximity to prime tourist destinations like Banff and its status as a major international airport hub. Both local experts and travelers express that hostels are essential for diversifying the visitor experience, especially for younger and budget-conscious travelers. Yet, the current landscape shows more than 100 hotels and a substantial number of Airbnb rentals, while hostels remain minimal. The Barriers to Growth According to Shelbey Sy, the director of operations and marketing for Hostelling International Canada, the challenges faced by potential hostel developers are multifaceted. Urban real estate prices, for example, present high up-front costs and regulatory hurdles. Additionally, the lack of robust transport networks necessary for budget-conscious backpackers poses a further obstacle. Many European countries have a well-developed infrastructure that caters to affordable travel, making them more conducive to hostel growth. In stark contrast, Canadian cities, including Calgary, have been slow to recognize this untapped market. Hostels and Their Impact on the Local Economy The presence of hostels is not just a matter of having a place to stay; it also presents considerable economic potential. Jeff Jebson, the owner of Wicked Hostels, estimates that if 130 guests spend an average of $100 per day, it could yield nearly $5 million in local economic impact. This is a significant number that underscores the missed opportunities associated with the hostel shortage. Tourists who opt for hostels tend to spend money on local dining, attractions, and services, further benefitting the local economy. Future Opportunities and Predictions As Calgary expands its tourism vision, integrating more hostels into the accommodation mix could enhance the city’s appeal to younger travelers and backpackers. Tourism Calgary’s President, Alisha Reynolds, has pointed out the importance of hostels in creating a balanced accommodation ecosystem to meet diverse visitor needs. With upcoming events and expansions, such as the new BMO Centre, which will attract thousands of attendees, the city must act quickly to broaden its accommodations if it aims to capitalize on these developments. Conclusion: Raising Awareness in the Community Calgary stands at a crossroads where the decisions made today can shape its future as a tourism hub. By fostering awareness about the vital role hostels can play in diversifying Calgary’s accommodation offerings, community stakeholders can spark interest in establishing more budget-friendly lodgings. The city has a remarkable opportunity to strengthen its community fabric while drawing in a broader range of visitors. In light of this information, those looking for ways to support local tourism should advocate for the development of new hostels. Not only would this support the economy, but it also ensures that Calgary remains an appealing destination for all travelers, irrespective of budget. Invest in the future of Calgary—let's encourage the growth of hostels and create a vibrant, inclusive community for visitors.