Tourism spending in Canada grew 2.3% in the fourth quarter of 2023, following a 0.1% decline in the third quarter. Annually, tourism spending rose 13.5% in 2023 after increasing 50.4% in 2022. Tourism gross domestic product (GDP) rose 2.5% in the fourth quarter of 2023 and was up 9.5% annually, said Statistics Canada in a report released on Wednesday.
Andre Furtado
Passenger air transport (+3.8%) and accommodation services (+3.9%) were the main contributors to growth in tourism spending in the fourth quarter. Annually, passenger air transport spending (+34.0%) contributed the most to overall growth in 2023. Pre-trip expenses (-9.0%), such as recreational vehicles, pleasure crafts and camping equipment, was the only product category to decrease in 2023, said the federal agency.
It said tourism GDP rose 2.5% in the fourth quarter, following a 0.6% decrease in the third quarter. Accommodation services (+4.1%) and transportation (+4.0%) were the main contributors to overall growth. Economy-wide GDP edged up 0.2% in the fourth quarter, and tourism’s share of GDP was unchanged at 1.58% on a nominal basis.
“Annually, tourism GDP rose 9.5% in 2023 with positive growth in all categories. Transportation (+25.5%) accounted for nearly half of the yearly gains. There were also positive gains across all tourism job categories in 2023, as total tourism jobs increased 9.1%.”
The report said tourism spending by international visitors in Canada was up 3.3% in the fourth quarter, following a 1.4% increase in the third quarter. Spending on accommodation (+4.3%) and food and beverage (+4.8%) services were the main contributors to the quarter’s increase.
“Tourism spending in Canada by Canadians increased 2.0% in the fourth quarter. Domestic tourism spending on passenger air transport (+4.2%) was the main contributor to the rise. Many product categories such as recreation (-1.6%) and travel services (-5.2%) had declines in the fourth quarter which limited growth. Annually, domestic tourism spending increased 7.7% in 2023, as outlays on passenger air transport rose 34.1%,” it said.
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. He was also named by RETHINK to its global list of Top Retail Experts 2024.
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