Tourism spending in Canada grew 0.5% in the third quarter, following a 1.1% increase in the second quarter. Growth in the third quarter was driven by a 2.3% increase in foreign tourism demand, while domestic tourism demand declined 0.2%, according to a report by Statistics Canada.
Tourism Calgary
Passenger air transport (+0.8%) contributed most to the growth in tourism spending, followed by spending on non-tourism products (+0.8%), such as groceries and clothing, and pre-trip expenditures (+2.1%), such as recreational vehicles, pleasure crafts and camping equipment. Growth was partially offset by declines in food and beverage services (-0.6%), recreation and entertainment (-0.4%), vehicle fuel (-0.3%) and passenger rail transport (-3.7%), explained the federal agency.
“Tourism gross domestic product (GDP) edged down 0.1% in the third quarter, following a 0.5% increase in the second quarter. Lower accommodation services (-1.0%) contributed the most to the decline and was partially countered by increases in non-tourism (such as retail trade) (+0.7%) and transportation (+0.3%) industries. Economy-wide GDP declined 0.3% in the third quarter, and tourism’s share of GDP was unchanged on a nominal basis, at 1.67%,” said the report.
“Tourism jobs (+0.1%) edged up in the third quarter, following a 1.1% increase in the previous quarter. Non-tourism industries (+0.5%), air transportation (+0.9%) and other transportation (+1.9%) industries were the largest contributors to job gains in the third quarter, while declines in food and beverage services (-0.3%) and accommodation (-0.4%) industries offset growth overall. Tourism’s share of jobs remained at 3.33%, while the total number of jobs in Canada rose 0.3% in the third quarter.”
StatsCan said tourism spending by international visitors was up 2.3% in the third quarter, following a 3.2% increase in the second quarter. Spending on non-tourism products (+4.8%) and accommodation services (+2.5%) were the main contributors to the quarter’s increase. Growth was moderated by a decline in passenger air transport (-1.4%).
“Tourism spending in Canada by Canadians decreased 0.2% in the third quarter. Domestic spending on food and beverage (-1.7%) and accommodation (-1.3%) services were the main contributors to the decline,” added the report.
“The decline in domestic tourism demand coincided with a 2.3% increase in the number of Canadian overnight travellers returning to Canada from other countries by air. Spending on passenger air transport rose 1.4% in the third quarter.”
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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