Tuesday, April 5, 2005

Tourists flock back

TOURISM rebounded in Canada last year after two years of struggling over shocks to the economy such as the war in Iraq, the outbreak of SARS and the power outage in Ontario.

Tourists, both domestic and foreign, spent more than $49.7 billion in the country in 2004, up 4.8% from the previous year.

Foreign tourists accounted for a slightly higher proportion of spending. Canadians were responsible for about 68 cents of every dollar spent on tourism, down from 70 cents in 2003. Foreign tourists were responsible for 32 cents last year, up from about 30 cents.

A major factor in the rebound in tourism activity was a substantial increase in overnight visits from abroad, which boosted foreign spending by 8.4%. Domestic tourism spending also gained momentum in 2004, rising 3.3% to a record $34.4 billion.

Air transportation

The biggest percentage increase was on air transportation, where spending soared 10.3%, giving the industry a big boost.

Economic output in tourism, as measured by gross domestic product, rose 4.7% in 2004, a much faster pace of growth than the 2.8% gain in the rest of the economy. In 2003, tourism GDP declined 2.4%.

Employment in tourism edged up 1.0% to 583,000 last year, breaking the previous record of 579,000 set in 2002.

On a quarterly basis, tourism spending rose 0.9% in the fourth quarter last year, the six consecutive quarterly increase. This occurred despite a strong outflow of Canadians traveling abroad. Overnight visitors, particularly from the United States, boosted non-resident spending in Canada.

For more information, contact the information officer (613-951-3640), Income and Expenditure Accounts Division.

  Print article

© 2004, 2005 Statistics Canada.