Canadian tourism satellite account

The period from 1998 to 2000 were banner years for tourism in Canada. Tourism GDP reached $22.4 billion in 2000, up 15% from 1998. Tourism expenditures jumped over 17% during this time to $53.7 billion while tourism jobs increased by 7.5% to 610,000.

Strong growth was also recorded for the total Canadian economy during this period with GDP advancing 18%. As a result, tourism's share of the total economy slipped slightly from 2.3% in 1998 to 2.2% in 2000. The merger of two Canadian airlines in 2000 hurt profits in the passenger airline industry and dampened tourism GDP in that year.

The years 1998 to 2000 were marked by low values for the Canadian dollar relative to its counterpart in the United States, which helped to spur tourism in Canada. The average exchange rate for the period was US 67 cents. Overnight visits from the United States were up 2.0% during this period while trips from tourists from other countries rose 11%. Conditions within Canada also propelled tourism as personal disposable income per person jumped 11%.

Canadian tourism spending in Canada registered large gains during this three year period. Encouraged to stay in their own country as a result of a low Canadian dollar, Canadians spent $35.9 billion travelling in Canada in 2000, up 18% from 1998. This was 5% higher than the spending increase of Canadians travelling abroad.

A 15% increase in non-resident spending in Canada pushed tourism exports up to $17.8 billion in 2000. However, Canadians spent $20.9 billion on tourism abroad, up 13% from 1998. As a result, the net tourism trade balance was negative $3.1 billion, down slightly from the $3.0 billion deficit posted in 1998. The net tourism balance compares the amount Canadians spent abroad on tourism against what non-residents spent in Canada.

Tourism employed 610,000 people in 2000 or 4.0% of all Canadian jobs. With 159,000 jobs, the accommodation industry was the largest tourism employer.

At $11.6 billion, the passenger air transportation commodity had the highest tourism spending. Accommodation and food and beverage services were the next most common commodities on which tourists spent their money.

Note: The Tourism Satellite Account (TSA) is referred to as a satellite (extension) account because tourism is not an identified industry within the standard economic accounts. Rather, the TSA 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 input-output accounts and travel surveys.

Definitions, data sources and methods: survey number 1910.

The research paper Canadian Tourism Satellite Account, 2000 (13-604-MIE2005048, free) is now available online. 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 the information officer (613-951-3640), Income and Expenditure Accounts Division.