Business Conditions Survey: Traveller accommodation industries

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Canadian hotel operators were less optimistic about the 2007 summer outlook, according to the Business Conditions Survey for the Traveller Accommodation Industry. Hoteliers were expecting fewer room nights booked, lower occupancy rates and fewer corporate travellers. Furthermore, hotel operators reported that, for the first time, the exchange rate fluctuation was a greater business impediment than labour shortages for the spring of 2007.

Over a quarter of hotel managers (26%) anticipated the number of room nights booked to decline, while over a fifth (21%) expect it to rise. A similar pattern was also observed for occupancy rates as well as for the number of corporate travellers.

However, hoteliers were still optimistic about the anticipated average daily room rates. According to third quarter results, 45% of respondents anticipated an increase, while 18% anticipated a decrease in the average daily room rate.

Overall, hotel managers foresaw no change in the anticipated total number of hours worked by their employees. Third quarter results show that there were as many hoteliers who anticipated the total number of hours worked to be higher (20%) as there were hoteliers who anticipated that number to be lower (20%).

The exchange rate fluctuation was the new major impediment to the traveller accommodation industry in the second quarter. According to the results, 38% of hoteliers found the exchange rate fluctuation to be a business impediment. During the second quarter of 2007, the Canadian dollar appreciated by about 3% each month against the American dollar.

Both skilled and unskilled labour shortages were still considered business impediments by about a third of hoteliers. As well, the number of hoteliers who reported no difficulties for the second quarter of 2007 reached a low of 20%.

The survey of around 1,325 businesses, mostly hotels, was conducted in July and assessed the outlook of key indicators compared with the same period in 2006. Some of these key indicators include bookings, occupancy rates, room rates and hours worked by employees.

Note: The Business Conditions Survey for the Traveller Accommodation Industry is made possible with the support of industry partners, the Canadian Tourism Commission, the Ontario Ministry of Tourism, Tourism Saskatchewan, the Nova Scotia Department of Tourism, Culture and Heritage and Industry Canada. Results are based on survey questionnaires sent to traveller accommodation providers and are weighted by their operating revenues. Consequently, the larger businesses have a correspondingly larger impact on the results than smaller businesses.

Available on CANSIM: tables 351-0004 and 351-0005.

Definitions, data sources and methods: survey number 5050.

For more information, to enquire about the concepts, methods or data quality of this release, or to obtain the survey background paper, contact Konstantine Anastasopoulos (613-951-8354; 613-951-6696; konstantine.anastasopoulos@statcan.gc.ca), Service Industries Division.

Table(s).