Canada. Tourism spending up

Tourism spending in Canada increased 0.3% in real terms in the third quarter, as expenditures by Canadians advanced while those of international visitors fell.

This was the first increase in tourism spending in five quarters, ending the longest downturn since the early 1990s. From the second quarter of 2008 to the second quarter of 2009, tourism spending fell 3.1% in real terms. This was still well short of the 5.8% drop related to the severe acute respiratory syndrome episode during the first two quarters of 2003.

Spending by Canadians on tourism advances

Spending by Canadians on tourism in Canada increased 0.9% in real terms in the third quarter, following four quarters of decline.

Outlays were higher across all major tourism categories. Spending on accommodation was up 1.6% in the third quarter, following a 2.8% decline in the previous quarter. Expenditures on passenger air transportation also rebounded, as travel abroad increased compared with the previous quarter.

Spending was lower for travel services and other transportation, including by taxi and water.

Spending by international visitors down again

Spending by international visitors fell 2.4% in real terms in the third quarter, the seventh consecutive quarterly decrease. This brought international tourism spending in Canada to a level 15.4% below where it stood in the fourth quarter of 2007.

Outlays by international visitors were down across the board, with weakness notably in recreation and entertainment, vehicle fuel and repairs and parts and accommodation. The number of overnight travellers to Canada from the United States and other countries was down 1.7% during the quarter, while the number of same-day travellers fell 8.6%.

Tourism contributes positively to economic growth

Tourism gross domestic product expanded 0.4% in real terms in the third quarter, the first increase in five quarters. The strength came from renewed activity in the air transportation and accommodation industries. Declines continued in other tourism industries, including recreation and entertainment and travel services.

Tourism employment was unchanged from the previous quarter. Job gains were registered in the air and accommodation industries, while fewer jobs were found in other industries, notably food and beverage services and travel services.

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