National tourism indicators

View the most recent version.

Tourism spending advanced for the 14th consecutive quarter at the end of 2006, bolstered by tourism outlays by Canadians and a turnaround in spending by non-residents visiting Canada.

Overall tourism spending (resident and non-resident) was up 1.8% in the fourth quarter. Tourism demand has been on the rise since the second quarter of 2003.

Tourism registered its third consecutive year of solid growth in 2006 following a downturn in 2003 related to severe acute respiratory syndrome (SARS) and the war in Iraq. Tourism demand climbed 4.6%, following gains of 3.9% in 2005 and 5.2% in 2004.

Tourism spending (in current dollars) in Canada reached $66.9 billion in 2006. Canadians accounted for three-fourths of this total, a proportion that has risen from two-thirds during the late 1990s.

Tourism spending by Canadians in Canada rose last year at its fastest pace in a decade, while spending by foreign visitors fell for the second year in a row.

Tourism spending by Canadians continues upward trend

Domestic tourism spending in Canada rose 2.0% in the fourth quarter, bringing the annual gain to 7.7%, the strongest annual advance since 1997. Solid gains in personal disposable income (+6.1%), low unemployment and a healthy labour market stimulated domestic tourism.

Canadians travelling abroad also spent more in the fourth quarter, boosting the country's international travel deficit to a record $2.1 billion. A deficit indicates that Canadian travellers spend more abroad than international travellers spend in Canada. The record deficit occurred despite increased travel spending by non-residents in Canada.

The increase in Canadian travel abroad was reflected in the 3.1% hike in domestic spending on air transportation in the fourth quarter. In this release, Canadians' spending on travel with Canadian carriers is counted as spending in Canada and is thus included in domestic demand. In 2006, domestic demand for air transportation jumped 10%, the third consecutive annual double-digit gain since 2003.

As for other tourism commodities, Canadians' spending increased by 1.5% for accommodation services and 1.6% for food and beverage services in the fourth quarter. The year 2006 was a good one for accommodation services, with domestic demand up 10%, the strongest annual increase in nine years.

Increase in international tourism spending

Tourism exports were up 1.5% in the fourth quarter of 2006. This occurred despite a decline in the number of international visitors to Canada, which was driven by a substantial drop in same-day travel from the United States.

The number of travellers staying more than one day was up in the fourth quarter, however, with 3.4% more American visitors and 2.3% more visitors from other countries. On average, overnight visitors stay three or four days in the country and spend eight times as much as same-day visitors.

The results for tourism exports for the quarter were mixed. Non-resident spending on air transportation (+4.8%) and accommodation (+1.0%) recorded gains, reflecting the greater number of travellers visiting for more than one day. Spending on food and beverage services (-0.2%) and on vehicle fuel (-2.4%) on the other hand was weak, reflecting fewer same-day travellers.

Tourism exports fell 3.9% in 2006, following a similar decline in 2005. Declines were widespread across spending categories. Outlays on vehicle repairs and parts and fuel, items associated with same-day visits to Canada, fell sharply. For the year as a whole, the number of same-day travellers from the United States was down 12%. This was the seventh straight year of decline, bringing the number of these travellers to half of what it was in 1999.

Tourism employment continues to grow

Tourism employment rose 0.4% in the fourth quarter of 2006, pushed up mainly by job gains in food and beverage services (+0.9%) and recreation and entertainment. Employment in accommodation services and in the travel agency industry edged down.

For the year 2006 overall, tourism employment advanced 1.4%, almost three times the average pace of the previous five years (+0.5%). Half the increase came from the accommodation industry, which registered its strongest job gains (+3.0%) since 1990. Gains were recorded in all other industries, with the exception of travel agency services and rail transportation, which lost jobs.

Tourism gross domestic product outpaces overall economic growth

Tourism gross domestic product (GDP) advanced 1.9% in the fourth quarter of 2006, nearly five times the 0.4% growth in economy-wide GDP. The strength this quarter came from the transportation sector (+2.2%), due mainly to the solid performance of the airline industry. Accommodation services also posted healthy gains.

Tourism GDP grew 4.2% in 2006, the third consecutive annual increase since 2003 when it declined 2.3%. Tourism's share of economy-wide GDP was 2.1% in 2006, up from 2.0% three years earlier.

Looking ahead

According to the Business Conditions Survey for the Traveller Accommodation Industries, 73% of hotel operators expected almost the same or higher occupancy rates in the first quarter of 2007, while 27% expected them to fall.

The Canadian dollar lost ground against its US counterpart and the euro early in the quarter, making it less expensive for Americans and Europeans to shop and travel in Canada. This also made it more costly for Canadians to travel to the United States and to Europe.

Finally, implementation of the requirement for passports to enter the United States by air could adversely affect travel, in the short term at least, between Canada and the United States.

Available on CANSIM: tables 387-0001 to 387-0010.

Definitions, data sources and methods: survey number 1910.

The fourth quarter 2006 issue of National Tourism Indicators, quarterly estimates (13-009-XIB, free) is now available from the Publications module of our website.

For more information, or to enquire about the concepts, methods or data quality of this release, contact the information officer (613-951-3640; iead-info-dcrd@statcan.gc.ca), Income and Expenditure Accounts Division.

Table(s).