British Columbians are consuming less alcohol, with wholesale purchases across all categories experiencing a significant year-over-year decline. This trend coincides with a notable decrease in American tourists visiting the province, although an increase in domestic Canadian travel has partially offset the impact on the tourism sector.
New data from the British Columbia Liquor Distribution Branch (BCLDB) reveals a significant downturn in alcohol sales. In the April to June quarter, wholesale buyers spent $70.3 million less on alcohol than in the same period last year, marking a 7.31% decrease. This trend is accelerating, with the latest quarter's decline being more than double that of the January to March period.
All major alcohol categories saw reductions in both dollar value and volume. Beer sales fell by 4.7% in value and 5.87% in volume. Wine experienced a more substantial drop, with sales down 11.54% and volume down 9.4%. Notably, B.C. wines saw an even steeper decline of 17.54% in sales value. Spirits also declined by 4.48% in sales and 5.39% in volume. Even the refreshment beverage category, which includes ciders and coolers, saw an 8.68% decrease in sales.
Conversely, sales of non-alcoholic wines and beers have been on the rise, indicating a potential shift towards lower-alcohol or non-alcoholic options among consumers.
Data from Statistics Canada indicates a downward trend in American visitors to British Columbia. From February to July, U.S. vehicle crossings into B.C. were down by nearly 7% compared to the same period last year. The Pacific Highway crossing saw the largest decline in U.S. travelers, with a 15% drop.
This decrease in American tourism has been attributed, in part, to escalating trade tensions between Canada and the U.S. However, the decline in U.S. visitors has been largely offset by a significant increase in domestic travel from other Canadian provinces. Tourism operators are reporting a shift in their visitor demographics, with a surge in Canadians exploring B.C.
Despite the overall decrease in U.S. tourists, major events in Vancouver, such as the Alcoholics Anonymous International conference, have helped to bolster visitor numbers. Destination Vancouver estimates that approximately 2.7 million U.S. tourists are expected to visit Vancouver this year and next, with U.S. travelers making up nearly a quarter of all tourist visits to the city in the past year.