Vancouver has been losing hotel rooms over the last decade, according to a city staff report.

Despite the growth of tourism, the report noted that the city has seen its supply of hotel accommodations dwindle by 1,105 rooms between 2008 and 2018.

Kevin McNaney, a senior planner with the city’s planning, urban design and sustainability, noted in his report to council that the loss was mainly due to Vancouver’s property market.

“In this period, land values have risen substantially for strata, rental residential and office space, resulting in proposals for the conversion or redevelopment of existing hotels, primarily for residential,” McNaney wrote.

McNaney pointed out that 1,647 more hotel rooms are “at risk in the short and medium term for redevelopment, primarily to residential”.

“This will constrain job growth in the tourism industry and put further pressure on the use of residential homes for short term rentals,” he explained. “Tourism Vancouver is projecting the city will lose our competitive edge when competing for conferences due to challenges securing hotel room blocks at a price comparable to other major centres.”

Citing data from Tourism Vancouver, a business association, McNaney wrote that the city has 57 percent of the 23,000 hotel rooms in Metro Vancouver.

“Tourism Vancouver has experienced, and is predicting increased challenges in securing room blocks for conferences and tour operator reservations at competitive prices,” reads an appendix to McNaney’s report. “If this trend continues, it will become difficult to reliably secure major citywide conference bookings. Continued lack of accommodation supply, either for hotel rooms or short-term rentals may lead to constrained growth in the leisure tourism and hospitality industry.”

McNaney’s report proposed an interim hotel development policy and zoning amendments to the Downtown Official Development Plan.

The temporary policy aims a zero net loss of hotel rooms in the city.

It also seeks to encourage the development of hotels.

The measure will also allow, under certain conditions, the conversion of condo buildings to hotels in commercial areas and downtown.

McNaney recalled in his report that in 1991, city council amended the downtown zoning, and removed hotels as permitted uses in some areas.

The move meant that current hotels in these areas are considered “legally non-conforming”.

To remedy this situation, McNaney’s report proposed changing the Downtown Official Development Plan to add hotels as permitted uses in the areas affected by the 1991 decision by council.

The affected hotels are the Landis Hotel and Suites (1200 Hornby Street), Executive Hotel Vintage Park (1379 Howe Street), and Residence Inn by Marriott Vancouver Downtown (1234 Hornby Street).

If approved by council after public hearing, the new downtown zoning will, according to McNaney’s report, “allow for existing hotels to operate as a business legally in conformance to the zoning”.

McNaney’s report is included in the agenda of council on Tuesday (July 10).