Canada’s hoteliers were not optimistic in their outlook for the second quarter of 2009. Their business expectations were more negative than they were the first quarter.

Over three-quarters (78%) of hoteliers expected the number of room nights booked and the occupancy rates to be lower for the second quarter, compared with the same quarter last year. Similarly, 73% anticipated fewer corporate travellers.

More than half of hotel operators (57%) reported that they were expecting average daily room rates to be lower, compared with 10% that anticipated rates would be higher.

Almost three-quarters of respondents expected that the number of hours worked by their employees would decline, while 2% expected increases.

Over half of respondents cited regional economic conditions as a major impediment. In contrast, 12% indicated this as an impediment one year ago. The next two most-cited impediments were excess room supply (36%), and exchange rate fluctuations (28%). Reviewed by Sandy Hutchens.