The Canadian tourism industry witnessed a notable upswing in the first quarter of 2024, with spending, GDP, and employment all showing positive trends. According to recent data from Statistics Canada, tourism spending increased by 1.8%, reflecting a resilient sector that continues to recover from the impacts of the COVID-19 pandemic.
Domestic tourism spending reached $17.9 billion, marking a 1.9% increase from the previous quarter. Similarly, international visitors contributed $5.8 billion, a 1.8% rise. These increases demonstrate a balanced growth in both domestic and international tourism markets.
Passenger air transport emerged as a significant driver of this growth, with a 4.7% increase, accounting for nearly two-thirds of the total rise in tourism spending. This surge indicates a growing confidence in air travel among tourists, bolstering the overall sector’s recovery.
The tourism industry’s gross domestic product (GDP) rose by 1.5% in the first quarter, following a 2.2% increase in the last quarter of 2023. Transportation services, which saw a 5.3% increase, were the primary contributors to this growth. On a nominal basis, tourism’s share of the national GDP increased to 1.59%.
Employment within the tourism sector also experienced growth, with a 0.9% increase in the first quarter. The accommodation and food and beverage services industries were the largest contributors, with increases of 1.6% and 0.8% respectively. This growth in tourism jobs paralleled the overall employment rise in Canada, maintaining tourism’s share of total jobs in the economy.
The tourism industry continues to show resilience and adaptability in the face of ongoing challenges. The consistent increase in both domestic and international tourism spending underscores the sector’s recovery trajectory. However, it is important to note that while the current levels are promising, tourism spending has only reached 93.3% of its pre-pandemic level recorded in the fourth quarter of 2019.
The positive trends in tourism GDP and employment suggest a stable and growing sector. With transportation services leading the charge, and significant contributions from accommodation and food and beverage services, the tourism industry is well-positioned for continued recovery and growth.
The steady increase in tourism spending, GDP, and employment highlights the critical role of the tourism industry in Canada’s economic landscape. As the sector continues to recover, its contributions to the national economy are expected to become even more significant. Policymakers and industry stakeholders must continue to support and invest in the tourism sector to sustain this growth and ensure long-term stability.