Business Conditions Survey: Traveller accommodation industries

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The business outlook of Canadian hoteliers for traveller accommodation has improved going into the spring of 2010 compared with expectations a year earlier.

Hoteliers were far less negative about prospects for business in all categories for the second quarter than they were in the same quarter of 2009. However, the proportion anticipating lower business prospects still outweighed those who anticipated improvements.

For example, 24% of hoteliers expected occupancy rates to increase in the second quarter compared with 4% a year earlier. On the other hand, 33% anticipated occupancy rates will decline this spring, well below the proportion of 78% a year ago.

As a result, the balance of opinion for expected occupancy rates in the second quarter of this year was -9, compared with -74 for the same quarter in 2009.

Also less negative for the second quarter of 2010 were hoteliers' expectations for average daily room rates, the number of corporate travellers, the number of hours worked by employees, and the number of room nights booked.

Heading into the second quarter, regional economic conditions and excess room supply continued to top the list of business impediments. Exchange rate fluctuations were reported by 30% of respondents, up from 25% cited in the last survey.

At the same time, twice as many hoteliers (20%) reported no impediments, compared with the same quarter one year earlier.

Note: The Business Conditions Survey for the traveller accommodation industries is a voluntary survey sent to 1,414 businesses, mostly hotels. This is the last instalment of this survey as the data series terminates with this release of second quarter 2010 data.

The balance of opinion is determined by subtracting the proportion of traveller accommodation businesses that stated their business activity would be lower relative to the same quarter of the previous year, from the proportion who believed their activity would be higher.

The survey was made possible with the support of industry partners, the Canadian Tourism Commission, the Ontario Ministry of Tourism, Tourism Saskatchewan, Nova Scotia Department of Tourism, Culture and Heritage, and Industry Canada.

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, contact Irene Ross (613-951-6305; fax: 613-951-6696; irene.ross@statcan.gc.ca), Service Industries Division.