Rocky Mountaineer, as seen above travelling through Kamloops on a previous spectacular summer day, draws millions of dollars annually to the Kamloops area, in addition to employing dozens of local workers. The rail-tour company is marking its 30th anniversary in 2020, when the pandemic led to cancellation of tours this year. (Kamloops This Week file photo)

Rocky Mountaineer, as seen above travelling through Kamloops on a previous spectacular summer day, draws millions of dollars annually to the Kamloops area, in addition to employing dozens of local workers. The rail-tour company is marking its 30th anniversary in 2020, when the pandemic led to cancellation of tours this year. (Kamloops This Week file photo)

Rocky Mountaineer expecting it to take years to rebuild business battered by pandemic

Despite having a suite of COVID-19 protocols to implement, the company decided not to operate in 2020

  • Sep. 3, 2020 7:10 a.m.

–– Kamloops This Week

The president and CEO of the Rocky Mountaineer said the rail tour company can weather the loss of the 2020 season, but noted it will take years to rebuild the business.

“We were spending tens of millions of dollars on marketing in Western Canada. We will not be anywhere near that for a few years after this,” Rocky Mountaineer president and chief executive officer Steve Sammut told KTW.

Despite having a suite of COVID-19 protocols to implement, the rail tour company decided not to operate in 2020 and let go about a quarter of its 325-person workforce, while another 25 per cent was given temporary layoffs.

The remaining 162 staff have seen reductions in hours, wages and benefits.

Sammut said the layoffs were difficult to make, but had to be done as the company has already spent money on marketing, but is not bringing in any revenue for 2020.

“That’s what hurts the most, because we have a great team,” he said.

The company hires an additional 500 seasonal employees annually, but due to the pandemic, about 95 per cent were not brought in.

“I think 80 per cent of them were planning to come back from last season, so all these people who were counting on working with us, we don’t have anything for them,” Sammut said.

The Rocky Mountaineer employs between 60 and 65 full-time staff in Kamloops, with an additional 30 to 40 seasonal workers.

Sammut was unsure of the number of Kamloops-specific layoffs.

Kamloops is also home to Rocky Mountaineer’s maintenance, rail operations, engineering, finance, human resources and training teams.

Rocky Mountaineer operates from mid-April to mid-October on three routes through B.C. and Alberta. Tens of thousands of people come to Kamloops aboard its trains each year, with the vast majority staying one night.

The company, which draws international tourists for a glimpse of Western Canada’s Rocky Mountains, estimated it generated between $47 and $49 million of spending in Kamloops in 2017 — figures based on company and passenger spending.

The loss of the 2020 Rocky Mountaineer travel season is poised to leave a 10 per cent hole in Kamloops’ tourism economy, according to Tourism Kamloops. The agency noted guests of the Rocky Mountaineer spend about $50 million in Kamloops — about a tenth of the estimated $500 million spent by tourists in the city each year.

The company obtained additional financing from lenders and nixed external contracts. Sammut is confident the firm has taken the right steps to be able to weather the financial hit in 2020.

Sammut said the 2020 season had to be cancelled because current travel restrictions under COVID-19 and shaken traveller confidence hindered about 85 per cent of the customer base — international travellers who faced deterrents such as limited flight options and two-week quarantines.

In addition, the company didn’t believe it would be able to generate enough demand selling solely to Canadians.

“Canadians are also afraid to travel right now,” Sammut noted.

Sammut said Rocky Mountaineer had at least 70 per cent of its projected sales for the year in place by early March, when the pandemic was declared, as trips are often booked up to18 months in advance.

“Then everything just fell off a ledge,” he said, noting those completed sales won’t be revenue until those guests travel on the Rocky Mountaineer.

The majority of customers have either rebooked or take the credit for a future tour.

Sammut said Rocky Mountaineer’s 325 employees are located between Vancouver and Kamloops, with some sales people working from different parts of the world.

The permanent terminations, he said, were made because the company doesn’t forecast returning to its pre-pandemic operating level, at least not in 2021.

The rail tour company hosts about 100,000 guests per year, but Sammut estimated the number of new travellers next year being about 45,000 due to weakened traveller and customer confidence. Coupled with rebooked guests from 2020, he is hopeful to see about 80,000 people coming through Kamloops next year.

Michael Potestio, Kamloops This Week

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Coronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic January 7, 2021. THE CANADIAN PRESS/Nathan Denette
Employers might be able to require COVID-19 vaccination from employees: B.C. lawyer

‘An employer must make the case’ using expert science, explains lawyer David Mardiros

Heavy flows of water pooled on Davis Road after a lead to a fire hydrant burst on Thursday Jan. 21. (Jim Tredwell photo)
Fire hydrant connection burst at Davis Road and Battie Drive

Crews worked well into the night on Thursday Jan. 21 to staunch the flow of water

A pedestrian was transported to hospital after being struck while crossing Roberts Street. (Cole Schisler photo)
Pedestrian struck crossing Roberts Street

The driver remained on scene and is cooperating with police

Emergency crews were called to a semi-truck crash along the Trans-Canada Highway at Oyster Sto’Lo Road on Friday, Jan. 22. (Cole Schisler/Black Press)
Semi truck crashes off the side of the highway in Ladysmith

Driver taken to hospital as precaution after single-vehicle crash Friday

Dog owners, from left, Marlyn Briggs with Nayla, Marjory Sutherland with Effie and Mick, and Christina Godbolt with Conon walk their pets frequently at the Chemainus Ball Park but are growing increasingly concerned about drugs being found discarded in the area. (Photo by Don Bodger)
Puppy rushed to emergency 3 times after ingesting drugs in Vancouver Island public spaces

Dog owners walking in Chemainus parks urged to take caution

U.S. Senator Bernie Sanders sits in on a COVID-19 briefing with Dr. Bonnie Henry, provincial health officer, and Adrian Dix, B.C. minister of health. (Birinder Narang/Twitter)
PHOTOS: Bernie Sanders visits B.C. landmarks through the magic of photo editing

Residents jump on viral trend of photoshopping U.S. senator into images

A woman injects herself with crack cocaine at a supervised consumption site Friday, Jan. 22, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Drug users at greater risk of dying as services scale back in second wave of COVID-19

It pins the blame largely on a lack of supports, a corrupted drug supply

Wet’suwet’en supporters and Coastal GasLink opponents continue to protest outside the B.C. Legislature in Victoria, B.C., on Thursday, February 27, 2020. THE CANADIAN PRESS/Chad Hipolito
‘We’re still in it’: Wet’suwet’en push forward on rights recognition

The 670-km Coastal GasLink pipeline was approved by B.C. and 20 elected First Nations councils on its path

The sky above Mt. Benson in Nanaimo is illuminated by flares as search and rescuers help an injured hiker down the mountain to a waiting ambulance. (Photo courtesy Nanaimo Search and Rescue)
Search plane lights up Nanaimo mountain with flares during icy rope rescue

Rescuers got injured hiker down Mt. Benson to a waiting ambulance Saturday night

Jennifer Cochrane, a Public Health Nurse with Prairie Mountain Health in Virden, administers the COVID-19 vaccine to Robert Farquhar with Westman Regional Laboratory, during the first day of immunizations at the Brandon COVID-19 vaccination supersite in Brandon, Man., on Monday, January 18, 2021. THE CANADIAN PRESS/Tim Smith - POOL
Top doctor urges Canadians to keep up with COVID measures, even as vaccines roll out

More than 776,606 vaccines have been administered so far

From the left: Midway RCMP Csts. Jonathan Stermscheg and Chris Hansen, Public Servant Leanne Mclaren and Cpl. Phil Peters. Pictured in the front are Mclaren’s dog, Lincoln and Peters’ dog, Angel. Photo courtesy of BC RCMP
B.C. Mounties commended for bringing firewood to elderly woman

Cpl. Phil Peters said he and detachment members acted after the woman’s husband went to hospital

Dr. Jerome Leis and Dr. Lynfa Stroud are pictured at Sunnybrook Hospital in Toronto on Thursday, January 21, 2021.THE CANADIAN PRESS/Frank Gunn
‘It wasn’t called COVID at the time:’ One year since Canada’s first COVID-19 case

The 56-year-old man was admitted to Toronto’s Sunnybrook Health Sciences Centre

An Uber driver’s vehicle is seen after the company launched service, in Vancouver, Friday, Jan. 24, 2020. Several taxi companies have lost a court bid to run Uber and Lyft off the road in British Columbia. THE CANADIAN PRESS/Darryl Dyck
Taxi companies lose court bid to quash Uber, Lyft approvals in British Columbia

Uber said in a statement that the ruling of the justice is clear and speaks for itself

Nanaimo Regional General Hospital. (News Bulletin file photo)
COVID-19 outbreak declared at Nanaimo hospital

Two staff members and one patient have tested positive, all on the same floor

Most Read