Canada. Tourism Spending Down

Tourism spending in Canada declined 0.8% in real terms in the second quarter of 2009, as outlays by both Canadians and international visitors fell.

Tourism spending was down for the fourth consecutive quarter in the second quarter of 2009. Over these four quarters, spending fell 2.9% in real terms. While this was the longest downturn since the early 1990s, it was not the most severe. In the first six-months of 2003, tourism demand fell 5.8% in real terms, largely reflecting the impact of the severe acute respiratory syndrome (SARS) episode.

Two factors added to the weakness for the quarter. First was the cancellation of flights to Mexico by Canadian airlines following the outbreak of the H1N1 influenza virus in that country. The second was the June 1 implementation of more stringent requirements for all persons, including US residents, to carry proper documentation in order to enter or re-enter the United States.

The National tourism indicators are funded by the Canadian Tourism Commission.

Spending by international visitors down again

Spending by international visitors fell 1.6% in the second quarter of 2009, following a 3.4% decline in the first quarter. This was the 6th consecutive quarterly decrease and the 15th decline in 18 quarters.

While spending by international visitors on transportation services was up 0.4%, driven notably by passenger air and interurban bus transport as well as vehicle rentals, this was the only advance in an otherwise negative quarter. Spending on accommodation declined 2.2%, reflecting fewer numbers of overnight travellers from both the United States and other countries.

Declines were also registered in spending on food and beverage services, other tourism commodities (which include recreation and entertainment and travel services) and non-tourism commodities (which include items like groceries, alcohol and clothing).

Spending by Canadians on tourism continues down

Canadians' spending on tourism in Canada fell 0.6% in real terms in the second quarter of 2009, following more modest declines in the previous three quarters.

With the downturn in economic conditions in late 2008, Canadians began cutting back on both their business and leisure travel. They continued to show restraint during the second quarter of 2009, as outlays on passenger air transportation (-2.0%), accommodation services (-3.5%) and travel services (-2.2%) were all down.

The declines were not across the board, however, as domestic spending on several items including interurban bus, vehicle fuel, repairs and parts, and other non-tourism commodities (such as groceries, alcohol and clothing) was up. The higher spending on these commodities indicates that Canadians toured closer to home during the quarter.

Continued contraction in tourism gross domestic product

Tourism gross domestic product contracted 1.1% in real terms in the second quarter of 2009, the fourth consecutive quarterly decrease. The declines were widespread across tourism industries, with accommodation (-3.1%) recording the largest decrease.

Tourism employment fell 0.9% in the second quarter of 2009, driven by job losses in the accommodation, air transportation and travel services industries.

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