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National tourism indicators
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Tourism spending in Canada fell 0.7% in real terms in the third quarter of 2008, as outlays by both Canadians and international visitors to Canada declined.
This brought an end to five years of growth following the severe acute respiratory syndrome (SARS) episode in the second quarter of 2003. Domestic demand had been the driving force behind that expansion.
Chart 1
First decline of tourism spending in five years
Spending on tourism at home edges down
Spending by Canadians on tourism in Canada edged down 0.4% in the third quarter of 2008. This was down sharply from the rate of growth in the previous quarter (+0.7%) and the average quarterly gains of the previous two years (+1.5%).
Slower growth in personal disposable income, poor weather (the summer of 2008 was the third wettest in 61 years), the high price of gasoline at the pumps and fuel surcharges on airfares served as the backdrop.
Chart 2
Tourism domestic demand edges down
Canadians' travel spending outside Canada fell 1.7% (in nominal terms) in the third quarter, as both same-day and overnight travel to the United States declined. Travel to non-US destinations was up for the 12th consecutive quarter.
Overnight travel within Canada was lower as indicated by the 0.6% decrease in spending on accommodation. Declines were also recorded for passenger air transport spending and vehicle fuel consumption.
On the other hand, domestic spending on recreation and entertainment, and non-tourism commodities (food and alcohol bought in stores, clothing and jewelry, magazines and books, etc.) was up.
Note to readersLevels and shares of tourism spending are expressed in current dollars, adjusted for seasonal variations. Growth rates of tourism spending and gross domestic product are expressed in real terms (i.e., adjusted for price change) as well as adjusted for seasonal variations, unless otherwise indicated. Employment data are also seasonally adjusted. Associated percentage changes are presented at quarterly rates. The National Tourism Indicators are funded by the Canadian Tourism Commission. |
Spending by international visitors falls again
Spending by international visitors to Canada fell 2.1% in real terms in the third quarter, the third consecutive decline. The number of travellers from the United States as well as overseas countries was down.
Chart 3
Non-resident spending on tourism falls again
All major categories of spending by international visitors were lower in the third quarter. Outlays on airfares (with Canadian carriers) fell 6.1%. Vehicle fuel consumption was also down sharply.
Tourism gross domestic product and jobs contract
While economy-wide gross domestic product (GDP) expanded slightly in the third quarter of 2008, tourism GDP contracted by 0.6%. Declines were registered across all tourism industries, led by transportation (-1.1%) and accommodation (-0.8%).
Tourism employment was down 0.7% in the third quarter, as the accommodation industry lost jobs for a second consecutive quarter. Job gains were made however in the recreation and entertainment, and food and beverage services industries.
Available on CANSIM: tables 387-0001 to 387-0010.
Definitions, data sources and methods: survey number 1910.
The third quarter 2008 issue of National Tourism Indicators, Quarterly Estimates (13-009-XWE, 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 1
National tourism indicators
Table 2
National tourism indicators
