Thursday 11 July 2019

National Tourism Indicators highlights for first quarter of 2019

A strong start to 2019
The National Tourism Indicators for Quarter 1 2019 have just been published on our website. Canada’s tourism economy expanded by almost 4% in the first quarter of 2019, to over $20 billion. The number of tourism jobs, businesses and expenditure also increased compared to the first quarter of last year.

Tourism activities in Canada: CAD 20.1 Billion +3.9%
Driven by domestic tourism expenditures over the first quarter of 2019, Canada’s tourism economy expanded by 3.9% based on robust gains from Transportation services (+5.0%) - in particular passenger air transport (+8.3%), food and beverage services (+4.1%), travel services (+7.0%), along with accommodation (+2.7%) and recreation and entertainment (+2.7%). 
  • Year-over-year, inflation accounted for 0.6 percentage points (p.p.), with food and beverage services recording the largest price increases (+3.3 p.p), while accommodation services registered the largest decline (-2.6 p.p.), followed by transportation services (-0.4 p.p). 
  • Tourism export earned from international visitors accounted for 18.5% of total tourism expenditures Tourism Export: CAD 3.7 Billion +0.6% 

Tourism Export: CAD 3.7 Billion +0.6%
  • Arrivals of international visitors to Canada slowed (-1.2%) over the first three months of 2019 on a year-over-year basis. This slowdown partly resulted from general softening inbound flows from several key international markets and from “the Easter effect” – where travellers who would have come in March are likely to delay their travel until the Easter holiday in April 2019 to take advantage of the Easter holiday. 
  • As a result, spending in Canada from international visitors (+0.6%) stayed on par with Q1 2018 for transport and accommodation services. Food and beverage showed the largest gains (+2.0%). 
  • Of note, expenditures on passenger air transport rose by 0.8%, which was consistent with increased air arrivals of US residents over the first quarter of 2019 (+5.1%). Domestic Tourism Expenditures CAD 16.4 billion +4.6% 

Domestic Tourism Expenditures CAD 16.4 billion +4.6%
  • Over the first three months of 2019, Canadians increased their spending (+4.6%) on domestic travel services and fares paid to Canadian carriers toward international travels. 
  • Indeed, the number of Canadians returning by air from the US (+6.8%) and from other countries (+4.3%) contributed to an appreciable increase in tourism expenditures on air transport services (+9.9%), along with travel services (+7.3%) and pre-trip expenditures (+6.0%). Canadians also spend more accommodation (+5.5%). Tourism Employment: 730,000 jobs +1.5% 

Tourism Employment: 730,000 jobs +1.5%
Servicing the demand for tourism activities generated 730,000 jobs over the first quarter of 2019, up 1.5% compared to Q1 2018. Job gains were led by air transportation (+4.8%), travel services (+5.5%) and accommodation (+2.0%). Tourism’s share of Canada’s GDP 1.65% 

Tourism’s share of Canada’s GDP 1.65%
Over the first quarter of 2019, tourism generated $8.2 billion in value added to the Canadian economy, representing 1.65% of the Canadian gross domestic product (GDP). 

Government Revenues Attributable to Tourism 
  • In 2018, government revenues attributable to tourism earned by four levels of governments (federal, provincial, municipal and aboriginal) totalled $28.4 billion, which represented 27.8 cents from each dollar of tourism expenditures on Canadian goods and services. 
  • Over the first quarter of 2019, the four level of governments earned $5.6 billion, which represented 27.7cents per dollar of tourism expenditures. 

*National Tourism Indicators – 2019 Q1 Highlights

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