Provincial and territorial tourism satellite accounts

Tourism gained importance in the Canadian economy from 1996 to 1998, as tourism gross domestic product (GDP) went from 2.1% to 2.3% of economy-wide GDP, according to the Provincial and territorial tourism satellite accounts, 1998, available today. Tourism GDP grew 18.4% (in nominal terms) from 1996 to 1998, twice the rate for the overall economy.

Tourism's economic effects varied considerably across the provinces and territories. It had the largest impact on Yukon's economy, followed by British Columbia and Prince Edward Island, in both 1996 and 1998. The smallest impacts on GDP were in Saskatchewan and New Brunswick.

Led by above-average job gains in the air, bus and rental vehicle industries, tourism generated 532,900 jobs across the country in 1998. Tourism's share of employment edged up to 3.7% in 1998 from 3.6% in 1996. The effect on employment was strongest in Yukon, followed by British Columbia and Prince Edward Island, and smallest in Quebec and Saskatchewan.

Tourism spending in Canada was $45.9 billion in 1998, up 15.6% from 1996. Hotels and passenger air transportation remained the two largest tourism industries, combining for over one-third of total tourism spending. In Prince Edward Island, Yukon and Northwest Territories, accommodation led tourism spending, whereas transportation dominated in the other regions.

Alberta led the way in tourism growth from 1996 to 1998. Tourism spending and GDP rose 18.9% and 20.6%, respectively, while tourism employment advanced 9.3%. Nova Scotia came second in terms of growth in tourism spending, while Ontario had the second highest growth for both tourism GDP and employment.

The tourism trade balance (non-resident spending in Canada minus Canadian spending on tourism abroad), was $3.0 billion in deficit in 1998, down from a $4.8 billion deficit in 1996. Ontario, Quebec and Saskatchewan had the largest tourism trade deficits in 1998. British Columbia, Nova Scotia and Yukon had the largest tourism trade surpluses. Nova Scotia and Ontario recorded the largest increases in spending by international visitors from 1996 to 1998.

Note: This paper is an update to the provincial and territorial tourism satellite accounts (PTSA) first produced last year by Statistics Canada. The PTSA is referred to as a satellite (extension) account because tourism is not an identified industry within the standard economic accounts. Rather, the PTSA extracts the tourism components out of several industries. The approach is based on principles approved by the United Nations Statistical Commission. The results of this report are based primarily on information from Statistics Canada's provincial input-output accounts and travel surveys.

Three major changes to the methods of the PTSA have been made with this release for 1998. Formerly, GDP was valued at factor cost, now it is valued at basic prices. Industries were formerly classified on a Standard Industrial Classification basis, but now they are classified according to the North American Industry Classification System. Finally, an improved method is used to allocate International Travel Survey data on tourism spending by commodity. The data for 1996 have been revised to make them consistent with the 1998 data. These changes are explained in the paper.

The research paper Provincial and territorial tourism satellite accounts, 1998 (13-604-MIE2003040, free; 13-604-MPE2003040, free) is now available on Statistics Canada's website (http://www.statcan.gc.ca). From the Our products and services page, under Browse our Internet publications, choose Free, then National accounts.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Conrad Barber-Dueck (204-275-3626) or Demi Kotsovos (613-951-4000), Income and Expenditure Accounts Division.