Tourism spending in Canada grew 2.6 per cent in the first quarter, due to an increase of 3.5 per cent in domestic tourism spending by Canadian residents. Tourism gross domestic product (GDP) (+2.3 per cent) and jobs attributable to tourism (+2.7 per cent) also rose in the first quarter, according to a report by Statistics Canada.
Andre Furtado
The federal agency said passenger air transport (+2.9 per cent) contributed the most to the growth in tourism spending in the first quarter, followed by food and beverage (+4.7 per cent) and accommodation (+2.2 per cent) services. As a result of this continued overall growth, tourism spending rose to 86.7 per cent of its level in the fourth quarter of 2019, before the COVID-19 pandemic.
“Tourism GDP grew 2.3 per cent in the first quarter of 2023, the same growth rate as the fourth quarter of 2022. In the first quarter of 2023, food and beverage (+4.3 per cent) and accommodation (+2.1 per cent) services industries were the largest contributors to the growth. With economy-wide GDP increasing 0.8 per cent in the first quarter, tourism’s share of GDP rose 0.04 percentage points to 1.65 per cent. Overall, tourism GDP was 84.4 per cent of its pre-pandemic level.
“Employment attributable to tourism rose 2.7 per cent in the first quarter of 2023, following an increase of 1.4 per cent in the previous quarter. In the first quarter of 2023, food and beverage (+3.6 per cent) and accommodation (+3.2 per cent) services industries were the largest contributors to the growth. Economy-wide employment increased 1.7 per cent in the first quarter. As a result, tourism’s share of employment grew to 3.30 per cent,” it said.
StatsCan said tourism spending in Canada by Canadians increased 3.5 per cent in the first quarter of 2023, following a 1.3 per cent decline in the previous quarter. In the first quarter of 2023, increased spending on passenger air transport (+4.6 per cent), food and beverage (+6.1 per cent) and accommodation (+4.4 per cent) services contributed most to the rise.
But the report said tourism spending by international visitors edged down 0.1 per cent in the first quarter of 2023, after double-digit increases in each of the last three quarters of 2022. In the first quarter of 2023, declines in passenger air transport (-3.2 per cent) and accommodation services (-0.6 per cent) were mostly offset by growth in non-tourism products (+2.7 per cent), vehicle fuel (+7.5 per cent) and vehicle repairs and parts (+6.8 per cent). Overnight travel by non-residents declined 0.4 per cent, while same-day travel by non-residents increased 10.5 per cent.
Mario Toneguzzi
(Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list)
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