Canada sees record tourism spend

Statistics Canada has announced that tourism spending in Canada has grown 2.2 per cent in the third quarter of 2016, representing the largest increase since the second quarter of 1997 and the 14th consecutive quarterly increase.

Record air travel from the United States and overseas countries contributed significantly to the increase in tourism spending by international visitors to Canada, StatsCan said in its recent report.

Strong growth in the third quarter was reported for both tourism spending by Canadians at home and international visitors in Canada. After a 1.3 per cent gain in the second quarter, tourism spending by Canadians in Canada increased a further two per cent in the third, making it the fastest pace of growth since the first quarter of 2011. This growth was fuelled mainly by tourism spending on passenger air transport (+4.3 per cent), motor vehicle fuel (+2.6 per cent) and accommodation (up two per cent).

Spending by international visitors in Canada, meanwhile, saw a 3.1 per cent increase in the third quarter, up from 0.5 per cent in the second quarter, with passenger air transport (+7.2 per cent) contributing most significantly to the growth. Accommodation (+2.7 per cent) and food and beverage services (up two per cent) also played a part, while recreation and entertainment recovered from its 2.9 per cent second quarter decline to post a 2.1 per cent growth. A decrease in the price of the loonie against the U.S. dollar has encouraged travel to Canada from the United States and spurred record air travel both overseas and from the U.S. to Canada.

Tourism gross domestic product also witnessed the largest quarterly increase since the second quarter of 1997, growing to 2.6 per cent after a 0.7 per cent gain in the second quarter. This represented the largest quarterly increase since the second quarter of 1997. Accommodation and transport played key roles in the increase in tourism GDP, increasing at five per cent and three per cent respectively.

Tourism employment was also up from +0.5 per cent the previous quarter to +1.2 per cent in the third quarter. This was spurred by growth in food and beverage services (+1.3 per cent), recreation and entertainment (+2.6 per cent) and accommodation (+1.2 per cent). Although jobs in travel services declined (-0.5 per cent), the quarter saw an increase in tourism jobs in non-tourism industries (+0.9 per cent).

The new figures are more good news for the tourism industry in Canada, coming shortly after the New York Times ranked the country as number one on its list of top travel destinations for 2017 - the year of Canada's 150th birthday. Tourism could also receive a further boost by the announcement of a new initiative that will make access to Canada's national parks free for all users in 2017, and for youths and new Canadians beginning in 2018.