For a midweek standard room in July at Long Beach Lodge Resort overlooking Cox Bay: $659, plus tax. Best Western Plus Tin Wis Resort: $649, plus tax and there’s a nightly minimum, depending on the day. Wickaninnish Inn on North Chesterman Beach: $980, with a four-night minimum. Oceanside suite at Pacific Sands: $699, with a three-night minimum. For a king bed at Hotel Zed: $714, plus tax and the two-night minimum.
Tofino, B.C., has always been pricey during the peak summer months, but this year a weekend getaway to the coast compares to a weeklong all-inclusive to Mexico.
“The rates are atrocious out here. It’s a beautiful experience, but it’s definitely catering to a different class,” said Jared Beaton, general manager at Tin Wis Resort, a Tla-o-qui-aht First Nation-owned and operated property. “Between food, travel and miscellaneous goodies and expenses, it’s probably nothing to spend $1,000 a day when you have a family of four,” he continued.
U.S. policy changes coupled with a higher demand as more Canadians are vacationing at home and more Americans are crossing the border – taking advantage of the currency exchange ($1 USD currently equals about $1.37CAD) – has created the “perfect storm” going into summer, says Beaton.
And it’s not just Tofino, but everywhere on Vancouver Island that’s showing an uptick in hotel rates.
The average price of a hotel on Vancouver Island in April climbed from $201.40 in 2024 to $218.84 this year, or 8.7%, according to statistics shared in a national market report proprietary to the Canadian hotel industry. By comparison, the Whistler Resort Area saw a 6.3% increase in the average daily rate for a hotel in April, jumping from $295.35 to $314.04.
“The rates have almost doubled since I started here in 2019,” continued Beaton. “It’s like real estate. But it’s also incredibly expensive to operate compared to four or five years ago.”
“Bills have gone up, so rates go up, it’s a vicious cycle,” he added. “If somebody out there can find a solution to lower our costs enough, so that we have the ability to lower our rates, so that we can invite families that are wanting to come out but can’t swing it, send me over the recipe because I’m all ears.”
Brandon Manzardo, Surf Grove Campground Tofino general manager, echoed Beaton’s concerns. “Overall costs are soaring everywhere.”
When Surf Grove opened in the summer of 2020, Manzardo said the rate for a basic tent site four rows back from the beach was $89/night. The rate for a fully serviced RV site closest to the beach was $109/night. This summer, those same sites are roughly $226.50 and $251.50 a night, respectively.
“Of course, our rates are higher than most campgrounds you’d experience, but you’re not getting all the value adds that we have brought to life here at any other campground in the country,” said Manzardo, noting they have laundry, a small grocery store, a business centre, wifi and 24-hour security throughout the property on Cox Bay Beach.
He said he manually manages the rate threshold and does not rely on AI management software. He likened the AI hotel rate management tools to casinos saying, “the house always wins.”
“Once the program realized it can double or triple that high demand time frame, it does it for you,” said Manzardo. “You see these dramatic rate increases… If somebody pays for it, there is still demand. It’s everywhere.”
He went on to say that he doesn’t see Surf Grove increasing their rates next year because they’re not adding any more value to the property.
Tofino’s prominent Airbnb market has taken housing away from the community over the years, but “whatever pain it does cause, it’s kind of taken away by accommodating some of the market segment,” Beaton concedes.
Tourism Tofino Executive Director Brad Parsell says the good news is that rates are not that high all year round. “Hotel rates are significantly cheaper outside of summer, and the experience can be much richer in slower times of the year,” said Parsell.
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