Tourism spending in Canada declined 0.3% in the third quarter, following a 0.6% increase in the second quarter. Foreign demand was down 2.7% in the third quarter, while domestic demand increased 0.5%. Tourism gross domestic product (GDP) decreased 0.6% in the third quarter due to a 2.6% decline in accommodation services, while the number of jobs attributable to the industry was unchanged. By comparison, economy-wide real GDP by industry rose 0.3% in the third quarter. On a nominal basis, its share of GDP dropped to 1.53%, according to a report released Thursday by Statistics Canada.
Tourism and major industrial sectors, gross domestic product, third quarter of 2024
“Lower tourism spending on accommodation services (-2.5%) was the main cause of the overall decline in the third quarter. Food and beverage services (-0.4%), passenger air transport (-0.2%) and travel services (-2.0%) also contributed to the decrease. Pre-trip expenses, such as recreational vehicles, pleasure crafts and camping equipment, rose 3.6% in the third quarter, moderating the overall decline. Lower tourism activity by non-residents impacted accommodation spending growth, as the portion of their tourism spending traditionally allocated to accommodations is nearly double that of domestic tourists (27.2% for non-residents compared with 14.1% for Canadian residents in the third quarter),” explained the federal agency.
Growth in the number of jobs in the industry was flat in the third quarter, after an increase of 0.3% in the second quarter. Tourism job growth within non-tourism industries (+0.7%), travel services (+1.6%) and air transportation (+0.7%) was offset by a decline in accommodation services (-1.3%) in the third quarter. The total number of jobs in Canada was nearly unchanged in the third quarter; as a result, tourism’s share of total jobs remained at 3.31%, added StatsCan.
“Tourism spending by international visitors in Canada fell 2.7% in the third quarter, following a 1.7% gain in the second quarter. Accommodation services (-3.5%), food and beverage services (-3.3%) and passenger air transport (-2.8%) were the main contributors to the decline. Overnight travel to Canada by international visitors decreased 3.4% in the third quarter,” it said.
“Tourism spending in Canada by Canadians was up 0.5% in the third quarter, after a 0.2% increase in the second quarter. Domestic tourism spending on pre-trip expenses (+3.6%), vehicle fuel (+1.5%), food and beverage services (+0.8%) and passenger air transport (+0.4%) were the main contributors to the rise in the third quarter. Growth was moderated by a decline in accommodation services (-1.9%).”
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