The Daily. Wednesday, March 28, 2001

National tourism indicators

Visitors from home and abroad spent $54.1 billion on tourism in Canada in 2000, a 7.9% increase over 1999. Higher fuel costs were an important factor. The 2000 increase came on the heels of a 6.5% increase in spending in 1999. Since the 1991 decline, average annual inflation-adjusted increases have been 3.3%.

Foreign tourists spent an estimated $16.2 billion in Canada in 2000, 30% of the total, and domestic travellers spent the remainder, $37.9 billion. The share of foreign tourism spending has risen substantially from 22% in 1990, levelling off at around 30% between 1998 and 2000.

Spending by Canadians was up 8.8% in 2000, compared with 6.0% in 1999, and that of non-residents rose 5.9%, compared with 7.7% in 1999.

Note to readers Data are unadjusted for seasonality and expressed in current prices, unless noted otherwise. Data for the first, second and third quarters of 2000 may have been revised.

The implicit price index for tourism rose 4.6% in 2000, slightly higher than the 3.2% advance from 1998 to 1999. Increases were especially strong for transport services (+7.7%), reflecting escalating fuel prices. Rises for many components were higher than the average annual inflation rate of 2.7% for 2000, as measured by the Consumer Price Index.

Taking inflation into account, tourism spending in Canada amounted to $44.3 billion in 2000, up 3.2%, the same growth rate as in 1999. Canadians spent $30.7 billion on tourism, up 3.6% from 1999 compared with an advance of 2.4% from 1998. Foreign visitors spent $13.6 billion, up 2.3%, less than half the 5.1% gain of 1999.

Employment generated by tourism rose to 546,400 in 2000, up 4.2% from 1999. This increase outpaced the 3.7% rate of growth in total business sector employment.

Travel deficit increases

Canadians spent far more outside the country on tourism than foreign visitors spent in Canada in 2000. As a result, the nation's travel deficit rose to $2.2 billion from $1.7 billion in 1999.

Inbound travel from the United States and other countries fell 0.9% in 2000, the first decline since 1992. This decline compares with a 2.1% increase in 1999. Combined same-day and overnight travel from the United States fell 1.4% from 1999. However, generally higher spending travellers from countries other than the United States increased 4.9%, slightly short of the 5.2% gain in 1999.

Travel from the United Kingdom rose 10.9% in 2000, more than twice the gain of 1999. This increase more than offset declines in the number of visitors from France and Germany, where the value of the national currencies declined 13.6% against the Canadian dollar. That was twice the pound sterling's 6.4% decline.

In the Asia-Pacific region, the recovery in the number of travellers continues from the widespread declines in 1997 and 1998, especially travellers from Australia and South Korea.

Canadians made 47.2 million trips to the United States and other countries, up 1.6% from 1999. The greatest increase, 6.2%, came in trips to countries other than the United States. Canadian travel south of the border rose 1.1% in 2000, rebounding from a 1.3% decline in 1999.

Fourth quarter 2000: Fuel costs drove spending

Canadian and non-resident visitors spent $10.8 billion in the country in the fourth quarter of 2000, up 7.5% from the fourth quarter of 1999. This increase was about the same as in the third quarter, but it continued a slowdown from the first six months of the year.

Canadian travellers spent $8.1 billion in the fourth quarter of 2000, about three-quarters of the total and 8.6% more than in 1999. Tourism spending by non-residents rose 4.5% to $2.6 billion.

Driven by rising fuel prices, spending on transportation increased 11.1% in the fourth quarter, the highest gain in any sector. It was the sixth straight quarter of double-digit increases in spending on fuel.

Adjusted for inflation and seasonality, the annualized rate of growth in tourism spending in the fourth quarter was 3.8%, just above 3.6% in the third quarter.

The Canadian dollar declined against its American counterpart, from US$0.68 in the fourth quarter of 1999 to just over US$0.65 in the fourth quarter of 2000. This may have been a factor in a 4.6% decline in Canadian travel to the United States compared with the fourth quarter of 1999.

However, the Canadian dollar was substantially stronger against most currencies in Europe and Asia-Pacific, likely contributing to a 10.4% increase in travel to these countries compared with the fourth quarter of 1999.

Adjusted for inflation and seasonality, spending by Canadians in Canada in the fourth quarter increased 5.5% at annual rates.

Slowdown in spending by non-residents

Foreign travellers spent $2.6 billion on tourism in Canada in the fourth quarter of 2000, up 4.5% from the fourth quarter of 1999. Increases were widespread, but again transportation increased the most, 7.6%.

Overnight travel to Canada declined 0.2% in the fourth quarter compared with the fourth quarter of 1999, following a 1.7% drop in the third quarter.

Foreign demand (tourism exports) was flat at annual rates, after adjusting for seasonality and inflation, compared with a marginal increase of 0.5% in the third quarter.

Employment generated by tourism advances

Employment generated by tourism reached an estimated 552,400, up 5.3% from the fourth quarter of 1999, and continuing a rising trend seen for the past five quarters. Seasonally adjusted, tourism employment increased 3.0% from the third quarter, the highest increase in the past nine quarters. This compares with an increase of 1.5% for the business sector in the fourth quarter, which was up significantly from the 0.2% gain in the third quarter.

Available on CANSIM: matrices 1835-1854.

The fourth quarter 2000 issue of the National tourism indicators (13-009-XPB, free) is now available. To order, contact the client services officer (613-951-3640; fax: 613-951-3618; iead-info-dcrd@statcan.gc.ca), Income and Expenditure Accounts Division. The electronic version of the publication (13-009-XIB, free) can be downloaded free of charge from Statistics Canada's Web site (www.statcan.ca). On the Products and services page, choose Free publications, then National Accounts.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Katharine Kemp (613-951-3814) or Jacques Delisle (613-951-3796), Income and Expenditure Accounts Division.

Tourism expenditures

Tourism expenditures