Americas > North America > Canada > Canada Tourism Profile

Canada: Canada Tourism Profile

2015/03/01

Canada’s tourism industry

Economic conditions remain challenging for Canada’s tourism industry

Canada’s tourism industry managed to post increase in 2013 despite a lot of economic challenges, inclunding slow GDP increase, sustained high levels of unemployment, high price of the Canadian dollar in 2013 and resulting tepid level of consumer confidence. The relatively high price of the Canadian dollar proved to be hard on incoming visits but beneficial for outbound tourism, whilst pent-up request and signs that the economy may be moving in the right direction further supported gains in domestic and outbound tourism.

Canadian tourism industry targets high-increase markets

In the wake of declining federal contribution to tourism marketing, the Canadian Tourism Commission is being forced to closely scrutinise its spending. Whilst the US continues to provide the bulk of tourism to and from Canada, the industry is expanding its focus to high-increase nations outside of the traditional US and European markets. Provincial tourism agencies meanwhile looked to developing new strategies to fund marketing within their regions to make up for the shortfall in federal funding.

New carrier agreements create increase opportunities for Chinese travellers

China continued to gain importance as a destination and source for Canada’s tourism industry. Strong increase in the number of inbound visitors proved to be precious for Canada’s tourism accounts, whilst air carriers realised strong sales on the increase in outbound trips. Air Canada and WestJet both entered into new agreements in 2013 with Chinese airlines, opening up new destinations and capacity between Canada and China, which is expected to strengthen the Canadian tourism industry.

Online channel continues to post strong growth

The tourism industry has a well-established home on the internet, and it is a place where Canadians are completely comfortable. Most households own at least one computer, in addition to personal devices such as smartphones and tablets with mobile internet connectivity. Retail travel remains a high-increase channel in the industry for all sectors, though flights, accommodations and package holidays are the majority popular. In addition to online activities such as research and booking travel or travel items, social media are a growing source of data for Canadian travellers.

International competition poses challenges to increase for Canada’s tourism industry

Canada is facing increasing competition from foreign markets for the world’s tourism dollars. Although the country slid up in the rankings of international tourism, there still has been a net loss in number of inbound trips to Canada since 2000. Recent gains in visitors and spending are a good sign that Canada is moving in the right direction in terms of improving its performance and international standing, but it is necessary to maintain continuous vigilance and effort to return to profitability for Canada’s tourism industry.