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

Crews retrieved the overturned commercial truck from the crash scene on Friday, Nov. 20. Photo: Betsy Kline
UPDATE: Kootenay woman dies in Genelle collision

The incident occurred Thursday, Nov. 19.

A man wearing a face mask to help curb the spread of COVID-19 walks in downtown Vancouver, B.C., Sunday, Nov. 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
104 new COVID-19 cases in Interior Health

IH is reporting the new numbers since Friday, Nov. 20

Photo: Trail Times
Castlegar man and woman arrested in downtown Trail

Police allege the truck they were in had a stolen licence plate on the rear

USA Today ranked the City of Rossland as it’s top Canadian ski town, and no. 2 in all of North America, while Nelson was ranked no. 10 overall. Photo: Jim Bailey.
Rossland and Nelson rank among top North American ski towns

USA Today ranked two West Kootenay communities among Top 10 Ski Towns in North America

Trail RCMP seized illicit drugs, cash and a weapon following a traffic stop in West Trail on Nov. 18. Photo: Trail RCMP
West Kootenay man, woman face drug charges after traffic stop

Police report that three types of illicit drugs were seized as well as cash and a Taser

People wearing face masks to help curb the spread of COVID-19 cross a street in downtown Vancouver, on Sunday, November 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. reports 17 COVID deaths, 1,933 new cases as hospitalizations surge over the weekend

There are 277 people in hospital, of whom 59 are in ICU or critical care

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

An aerial shot of Cedar Valley Lodge this past August, LNG Canada’s newest accommodation for workers at the project site in Kitimat. This is where several employees are isolating after a COVID-19 outbreak was declared last Thursday (Nov. 19). (Photo courtesy of LNG Canada)
Forty-one positive COVID-19 cases associated with the LNG Canada site outbreak in Kitimat

Thirty-four of the 41 cases remain active, according to Northern Health

7-year-old Mackenzie Hodge from Penticton sent a hand-written letter to premiere John Horgan asking if she’d be able to see her elf, Ralph under the new coronavirus restrictions. (John Horgan / Twitter)
Elf on the shelf an acceptable house guest, B.C. premier tells Penticton girl

A 7-year-old from Penticton penned a letter asking if she’d be allowed to see her elf this year

Workers arrive at the Lynn Valley Care Centre seniors home, in North Vancouver, B.C., on Saturday, March 14, 2020. It was the site of Canada’s first COVID-19 outbreak in a long-term care facility. THE CANADIAN PRESS/Darryl Dyck
Rapid tests ‘not a panacea’ for care homes, Dr. Bonnie Henry says

B.C. lacks capacity for daily tests of thousands of workers

(Delta Police Department photo)
Cannabis edibles found in Halloween bag lead B.C. police to illegal lab

Delta police arrested a man and a woman while executing a warrant at a residential property Nov. 20

A woman being arrested at a Kelowna Value Village after refusing to wear a mask on Nov. 22.(@Jules50278750/Twitter)
VIDEO: Woman arrested for refusing to wear mask at Kelowna Value Village

RCMP claims the woman was uncooperative with officers, striking them a number of times and screaming

B.C. Liberal MLA Shirley Bond questions NDP government ministers in the B.C. legislature, Feb. 19, 2020. (Hansard TV)
Cabinet veteran Shirley Bond chosen interim leader of B.C. Liberals

28-member opposition prepares for December legislature session

Most Read