The National Tourism Indicators (NTI) portray the evolution of tourism in Canada on a quarterly basis. These bottom-line figures officially represent the most current results on the significance of tourism in the Canadian economy and form the basis to measure its progress. They constitute a set of statistics that provide historical and current quarterly analysis of tourism, covering tourism commodity supply and demand, employment and prices.
Statistics Canada released on March 29, 2006 the National Tourism Indicators (NTI) quarterly estimates, fourth quarter 2005 and full year in review
Summary of 2005 preliminary results expressed in current prices (compared to the preceding year):
- Total tourism spending in 2005 reached $61.4 billion, an increase of 6.8% over the preceding year. Spending by domestic tourists was the sole source of growth as Canadian tourists increased their purchases by 9.4% over 2004. This was the largest annual gain since 2000.
- Foreign spending in 2005 increased marginally (up 0.9%) after a 12.9 increase in 2004. A downturn in visitors from the US (down 6.3%) was a key factor for this slowdown. The value of the Canadian dollar increased 7.4% relative to its US counterpart in 2005.
- Results were strong across several tourism commodities in 2005. Leading the way were air transportation (up 13.5%); vehicle fuel spending (up 15.1%); and travel services (up 5.8%).
- Total tourism employment reached 626,000 jobs in 2005 (up 1.7%). This was the largest increase in tourism employment since 2000.
- After adjusting for inflation and expressed in 1997 constant dollars, total tourism spending in 2005 amount to $54.4 billion, a 3.8% increase.
Summary of the fourth quarter 2005 estimates for data unadjusted for seasonality and expressed in current prices (compared to the same quarter of preceding year):
- Total tourism spending reached $13.5 billion in the fourth quarter of 2005, an increase of 7.6% over the same period last year. The increase was mainly due to a strong gain in domestic spending however international spending did advance 0.9% from the same quarter one year ago. Increases in spending were registered in all commodities with air transportation (up 17.7%) and vehicle fuel (up 11.4%) leading the way.
- Domestic tourism spending continues to grow as it reached $10.0 billion (up 10.2%), making this the eighth consecutive year‑over‑year gain. The strong Canadian economy continues to propel domestic spending forward with registered gains in all tourism commodities. Air transportation (up 25%) was a major source of expenditure increase as Canadians continued to fly domestic carriers.
- Total foreign spending (exports) registered a marginal 0.9% growth from year ago levels. A large decrease in the number of US visitors to Canada from the U.S. (‑10.8%) slowed spending. Conversely, a 5.8% increase in overnight trips made by overseas visitors, which have the highest average trip expenditure, helped to offset this slowdown. Spending was down on many commodities, however food and beverage (up 4.3%) and accommodation (up 1.5%) helped to push international spending forward.
- Total tourism employment reached 620,000 full and part‑time jobs, up 1.6% from the fourth quarter of 2004 and the seventh consecutive year over year increase. Increases in employment registered across all tourism industries. The strongest job gains were in air transportation (up 2.8%) registering over 57,000 jobs.
Summary of the fourth quarter 2005 estimates adjusted for seasonality and inflation and expressed in 1997 constant dollars (compared to the preceding quarter):
- Total tourism spending reached $13.8 billion in the fourth quarter of 2005 (up 1.0%), as both domestic and international travelers increased their spending in Canada.
- Total domestic spending by Canadians reached $10.0 billion (up 1.0%), slowing slightly from the 1.3% gain in the third quarter. Spending was in line with continued growth in the Canadian economy as personal disposable income per person (1.0%) and final domestic demand (1.1%) both advanced. In the first three quarters of 2005, air transportation had been the driving force behind domestic spending (up 2 to 4 %). This trend ended in the fourth quarter (up 0.7%) as purchases of plane tickets increased marginally. The fourth quarter also marked a decrease in gasoline prices that helped to boost tourism domestic spending on fuel by 1.5%.
- Total foreign spending (exports) advanced in the fourth quarter (up 0.9%), following three consecutive declines. Despite the increase, spending declined 4.4% below the level reached in the fourth quarter of 2004.
- Total tourism accommodation spending jumped in the fourth quarter advancing 1.2%, the largest gain in spending since the fourth quarter of 2003. The return of international travelers was the chief reason for the gain as spending on rooms from international tourists advanced 1.3%, after three consecutive quarterly decreases.
- Total tourism employment reached 629,000 full and part‑time jobs, a marginal increase of 0.4% from the previous quarter. Gains were registered in the air transportation (1.1%), accommodation (0.4%), and travel services (0.4%) industries.
Note to Readers:
These revisions were done at the time of the fourth quarter of 2005 release.
For more information on the NTI 4Q 2005, contact Murielle Ballantyne at (604) 638‑8328 or at ballantyne.murielle@ctc-cct.ca.
