Business is down on Vancouver's Granville Island, despite the recent opening of a free Olympic streetcar line. (CBC)

Some businesses at Vancouver's Granville Island, a popular shopping and market area on the south shore of False Creek, say they're taking a financial beating due to changes prompted by the Olympic Games.

The Sandbar restaurant is just one popular Granville location that had expected to capitalize on the Games, but the restaurant's manager said new parking rules have caused a slump.

"It has affected us about 10 per cent in terms of sales," said Mike Deas-Dawlish.

As of Feb. 1, free parking on the island became pay parking with a maximum two-hour time limit and Deas-Dawlish said that's driving away customers.

Parking rules were changed to prevent the area from turning into a giant Olympic parking lot, according to a spokesman for the Canada Mortgage and Housing Corporation, which manages Granville Island.

"We're concerned that with free parking on the island, people will simply use [it] as a parking lot, and go to the live sites and venues downtown," said Lino Siracusa.

Deas-Dawlish said businesses near his have seen sales drop by 35 per cent.

At some retail shops, sales have plunged nearly 60 per cent over this time last year, said Edie Orenstein, owner of Edie Hats.

"It's awfully quiet down here, with the exception of security people and the parking attendants," she said.

When Olympic events get underway this weekend business could pick up, but even if it doesn't, relief is in sight.

The new pay parking rules will be lifted March 1, Siracusa said.