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The Daily. Wednesday, June 27, 2001

National tourism indicators

The growth of spending on tourism in Canada eased slightly during the first three months of 2001. Canadians' spending grew more slowly, and vehicle fuel purchased by all visitors also contributed to the slowdown.

Canadian and non-resident visitors spent $11.1 billion in the first quarter, up 6.5% from the same quarter of 2000. This increase was lower than any registered in almost two years. Spending by non-residents rose 8.4%, after two quarters of year-to-year increases below 5%. However, the growth in spending by Canadians fell to 5.9%, the lowest it has been since the second quarter of 1999. Growth in spending by foreign visitors exceeded the growth in domestic spending for the first time in six quarters.

The transportation category, after five periods of double-digit year-to-year growth, posted a first quarter increase of just 7.4%. A major contributor to this deceleration was much lower pressure from fuel prices, leading to expenditure growth in the vehicle fuel category of only 3.6%. This followed six quarterly double-digit rises averaging 19%. Slightly stronger advances in spending on food and beverages, as well as accommodation, partly offset the deceleration in transportation.

Adjusted for inflation and seasonality, total tourism expenditures in Canada advanced at an annual rate of 0.5%, lower than in the previous three quarters.

Note to readers Data are unadjusted for seasonality and expressed in current prices, unless noted otherwise.

Spending by Canadians grew more slowly

Canadians travelling in Canada spent $8.7 billion in the first quarter, 5.9% more than in the first quarter of 2000. Canadians accounted for 79% of total tourism expenditures in the first quarter. Fuel price deceleration slowed the growth in transportation expenditures to 7.2% after six successive quarters of double-digit increases. Spending on food and beverages (+5.2%) also rose more slowly than in the four quarters of 2000. Accommodation expenditures rose 4.5%, about the same as the average increase for the year 2000.

The Canadian dollar weakened against its U.S. counterpart, from 67 U.S. cents in the first quarter of 2000 to 65 U.S. cents in the first quarter of 2001. This may have kept more Canadians at home. The number of Canadians travelling outside the country was down a slight 0.9% in the first quarter; the greatest decline was in same-day travellers to the United States (-4.7%). In contrast, the number of Canadian travellers to all other countries continued to advance strongly, rising 17.6% in the first quarter, the fourth successive double-digit increase. This occurred as the Canadian dollar gained strength compared with most European currencies.

Adjusted for inflation and seasonality, expenditures on tourism by Canadians in Canada fell 0.7% at annual rates from the fourth quarter of 2000, following three consecutive quarters of strong growth.

Spending by non-residents picked up

Non-residents spent $2.4 billion in the first quarter, 8.4% more than in the first quarter of 2000. Increases were spread across all categories, especially accommodation (+11.3%). Transportation spending was 8.6% higher, reflecting 11.4% growth in passenger air transport. Vehicle fuel expenditures rose 5.9%, less than in the previous nine quarters.

Inbound overnight travel from the United States was 6.0% higher in the first three months of this year, reversing two quarters of decline. Overnight travel from other countries was 5.0% higher, a greater increase than in the previous two quarters.

The 3.1% advance in the number of same-day travellers from the United States reversed the declines of the previous three quarters.

After adjusting for inflation and seasonality, spending by non-residents in Canada rose by 3.3% from the fourth quarter of 2000 (at annual rates) following two quarters of virtually no growth.

Stable growth in employment generated by tourism

Employment generated by tourism activities increased by 4.1% in the first quarter to 539,000 jobs. This growth was on par with the average increase of 4.2% during the previous four quarters.

An estimated 149,000 jobs, or 28% of the total, were in accommodation, up 7.6% from the first quarter of 2000. This was the largest increase of any category.

Seasonally adjusted, employment rose 2.7% at annual rates from the fourth quarter of 2000. Accommodation and food and beverages increased the most, while passenger transportation declined. The growth in employment generated by tourism was surpassed by the business sector as a whole (3.7%, annual rates).

Available on CANSIM: tables 3870001-3870009 and matrices 1835-1854.

The first quarter 2001 issue of the National tourism indicators (13-009-XPB) is now available. To order the publication, 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) From the Our 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