Weak dollar, gas prices prompt Canadian staycations

The weaker loonie and lower gas prices convinced Canadians to vacation closer to home this year and this trend is expected to continue in 2016, according to a new report by The Conference Board of Canada.

Following an increase of 2.8 per cent this year, overnight travel within Canada is expected to grow by another 2.4 per cent in 2016, according to the board's latest Travel Markets Outlook for both national and metropolitan cities. The board's findings include:

• Overnight visits to and within Canada are expected to increase by 2.4 per cent in 2016, thanks largely to lower gas prices and a weaker Canadian dollar.
• The strengthening U.S. economy and a more favourable exchange rate are expected to contribute to a 3.3 per cent growth in overnight travel from the U.S. next year.
• However, the pace of Canada’s tourism growth in 2016 will be dampened by higher travel prices and financial concerns among consumers and businesses.
• Halifax, Québec City, Montréal, Ottawa-Gatineau, Toronto, Winnipeg, Calgary, Edmonton and Vancouver will all attract more visitors in 2016.

Overnight travel from the U.S. is estimated to have increased by seven per cent this year — the strongest growth since 1998. The outlook will continue to be favourable, as a stronger U.S. economy and an advantageous exchange rate are expected to boost overnight visits in 2016 year by 3.3 per cent. Similarly, overseas arrivals to Canada are projected to increase by an additional 4.8 per cent next year, following growth of 5.3 per cent this year.

Travel prices in Canada are forecasted to increase going forward, the board said. Overall, travel prices are anticipated to rise by 2.4 per cent next year. In particular, travellers will pay 2.8 per cent more for accommodations, 2.6 per cent more for transportation and 2.5 per cent more for food and beverage services.

Of the nine Canadian cities covered in the Travel Markets Outlook’s Metropolitan Focus, most can count on tourism growth of between three and two per cent next year. Vancouver will be the standout with overnight visits expect to increase by 3.4 per cent in 2016.