Statistics Canada Releases National Tourism Indicators for First Quarter of 2009

July 10 2009

On June 29, 2009, Statistics Canada released the National Tourism Indicators results for the first quarter of 2009. The results were generally reflective of the current economic downturn, but positive aspects were also noted. Following previous quarterly declines in tourism spending and tourism GDP, tourism employment (attributable to tourism demand) fell 0.4% in the first quarter of 2009, driven by job losses in the travel services, food and beverage services, and air transportation industries. However, tourism jobs advanced in the accommodation and the recreation and entertainment industries.

Tourism spending in Canada also declined 1.3% in real terms in the first quarter of 2009, as outlays by both international visitors and Canadians fell for a third consecutive quarter. This is the first time tourism spending by both Canadians and international visitors has fallen for three consecutive quarters since 2001, when the tourism sector was affected by the events of September 11 and their aftermath.

Tourism spending has declined a cumulative 2.4% in real terms so far in the current downturn; however, this compares relatively favourably with a cumulative 5.3% decline in real terms after September 11 and a fall of 5.8% over the first and second quarters of 2003 with the SARS outbreak.

Spending by international visitors fell 5.7% in the first quarter of 2009, while Canadians' spending on tourism in Canada was flat, edging down only 0.1% in real terms in the first two quarters.

One positive note emerging from the new data is evidence of some domestic substitution of demand, as increased spending on overnight travel within Canada was demonstrated by higher spending on accommodation, vehicle rentals and gasoline, food and beverage, and entertainment. Nonetheless, tourism gross domestic product (GDP) contracted 0.9% in the first quarter of 2009, following two negative quarters in the second half of 2008. Tourism GDP was lower across all industries in the first quarter of 2009, except for the accommodation industry, which recorded marginal gains.

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