Tourism spending in Canada increased 8.7% in the fourth quarter, following a 29.3% rise in the third quarter. Annually, tourism spending rose 4.4% in 2021 after a 49.0% decline in 2020. Tourism gross domestic product (GDP) rose 11.9% in the fourth quarter of 2021 and was up 5.0% annually.
Despite the continued threat of COVID-19 and the emergence of new variants throughout 2021, increased vaccination rates throughout the year and resulting loosening of restrictions led to higher tourism spending in Canada in 2021. By the end of the third quarter, fully vaccinated travellers were allowed entry into Canada for non-essential travel. During the fourth quarter, the World Health Organization declared Omicron the latest variant of concern in late November. As a result, the Government of Canada reinstated certain travel requirements on December 21st, such as requiring a negative molecular test result for COVID-19 for all travellers arriving in Canada.
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