10
Transportation and Tourism
The Travel Account and International Passenger Fares
Figure 10-4 illustrates the trends in Canada's international
travel account from 1980 to 1998.
Travel Deficits
Canada's international travel account tallies the value of
spending by foreigners travelling in Canada against the value
of spending by Canadians travelling outside Canada. A deficit
means that Canadians are spending more outside Canada than foreigners
are spending in Canada.
After growing for the two previous years, Canada's travel deficit
fell sharply by 45 per cent in 1998 to $1.9 billion. The 1998
deficit is the smallest in 10 years, reflecting strong spending
by US tourists, who have come to Canada in record numbers, as
well as reduced expenditures by Canadians while outside Canada.
Canadians spent a total of $15.6 billion outside the country
in 1998. While Canadians reduced their spending by three per cent
to $9.7 billion in the US, they increased their spending
in other countries by six per cent to $6.0 billion.
Foreign travellers, on the other hand, spent a total $13.7
billion in Canada. Visitors from the US increased their spending
by 24 per cent to $8.6 billion, taking advantage of
the low Canadian dollar, as well as higher disposable incomes
resulting from strong economic growth in their country. In the
first nine months of 1998, US tourists accounted for $2 out of
every $3 dollars spent by foreign travellers in Canada, compared
with about $1 out of every $2 in 1997.
In fact, Canada's travel deficit with the US fell to $1.1 billion,
a 65 per cent decrease and its lowest level since 1988. But while
this travel deficit fell, Canada's deficit with other countries
more than doubled to $835 million as Canadians increased their
overseas spending by six per cent to $6 billion, and overseas
visitors reduced their expenditures in Canada by two per cent
to $5.1 billion.
International Passenger Fares
In 1998, Canadians purchased $3.79 billion worth of passenger
fares from foreign carriers while, in turn, Canadian carriers
sold $2.38 billion in passenger fares to foreign travellers.
This leaves a deficit of $1.41 billion in this account.
Air fares accounted for almost all of these transactions. Canadians
purchased $3.70 billion in air fares from foreign carriers, while
Canadian air carriers sold $2.35 billion in air fares to
foreign travellers.
For land transportation, Canadians spent $84 million on passenger
fares from foreign carriers, while foreign travellers spent $28
million on fares from Canadian carriers. Passenger fares for water
transportation are included with air fares and they represent
an amount smaller than those for land.
Travel Overview
Table 10-2 presents a summary of Canadian travel in 1997, the
latest year for which data is available. Canadian travel includes
domestic travel, which is travel by Canadians in Canada; and international
travel, which is travel by Canadians to the US and overseas, as
well as travel to Canada by visitors from the US and other countries.
Domestic Travel
In 1997, Canadians made 128 million trips considered tourist
travel. In 1998, domestic travel appeared to increase, evidenced
by 51.6 million trips in the third quarter of the year, which
represents a 16 per cent increase from the same period the previous
year. This increase coincides with a 21 per cent decrease in Canadians
going to the US.
Table 10-2 shows a summary of domestic travel in Canada for
1997.
As Table 10-2 shows, 65.7 million, or 51 per cent, person-trips
(to be referred from here on as "trips") in Canada were
for more than one night, while 62.5 million trips were completed
on the same day. Of the overnight trips, 52.2 million, or 79 per
cent, were to a destination in the same province. On average,
these trips lasted 2.8 nights and represented a distance of 267
kilometres. Overnight interprovincial trips lasted longer, averaging
5.6 nights. They were also longer, averaging 1,069 kilometres.
The average one-way distance for all domestic trips was 294 kilometres.
Distribution of Travel by Province
Interestingly, the distribution of travel by province reflects
provincial populations. In 1997, Ontario, the most populous province,
was the destination for 35 per cent of the total domestic trips
made, followed by Quebec with 21 per cent, Alberta with 14 per
cent and British Columbia with 11 per cent.
Figure 10-5 shows the distribution of domestic travel by province
for 1997.
On a per capita basis, Canadians took an average of 4.2 trips
in 1997. Going by province, Prince Edward Island had the lowest
per capita travel rate at 2.8 trips per year, reflecting the size
of the province, while the residents of Ontario, Quebec, Newfoundland
and British Columbia were just below the national average. The
residents of Manitoba, Saskatchewan and Alberta, as well as the
residents of New Brunswick and Nova Scotia, travelled more than
the national average.
In addition, half of the provinces were a destination for more
trips than they were the origin in 1997. Ontario, Manitoba, Saskatchewan,
Alberta and New Brunswick were net sources of domestic travellers,
while the other provinces were net recipients of domestic visitors.
The importance of interprovincial travel varies greatly by
province. For instance, in Prince Edward Island, interprovincial
travel accounted for 82 per cent of all trips, including intraprovincial
trips, which had P.E.I. as a destination.
This reflects the importance of tourism to P.E.I. By contrast
only eight per cent of trips that had Ontario as a destination
came from outside the province.
Purpose of Travel
In most cases, Canadians travelled domestically for pleasure
or to visit friends and relatives. Pleasure trips accounted for
36 per cent of domestic travel in 1997, while visits
accounted for 37 per cent. Travelling for business, on the
other hand, made up only 14 per cent of all domestic trips,
but it accounted for 34 per cent of all spending. Trips
for personal reasons, such as health or religion, accounted for
the remaining 13 per cent of domestic trips.
Figure 10-6 illustrates domestic travel in Canada in 1997,
according to the purpose of the travel.
Canadians visiting friends and relatives was the most common
activity as it was part of 54 per cent of all trips.
Canadians associated some of their travel to outdoor activities,
such as walking (11 per cent of trips), swimming (eight
per cent) or fishing (four per cent). They took trips
for shopping and sightseeing on 26 per cent and 16 per
cent of the trips, respectively.
Means of Travel
Canadians turned to the automobile most frequently for domestic
travel, using it on 91 per cent of all domestic trips
in 1997. Other modes accounted for the remaining nine per cent,
with air taking up five per cent. For overnight trips, air travel
became more important, accounting for eight per cent of these
trips, while the share of automobile trips fell to 87 per cent.
For business travel, as well, air becomes important, accounting
for 32 per cent of this travel.
Table 10-3 shows 1997 domestic travel activity according to
mode of transportation.
International Travel
In 1998, 95 million international travellers crossed Canadian
borders, representing a decrease of just under five per cent from
1997. At the same time, Canadians took 47 million international
trips, a drop of 14.5 per cent from 1997.
Of these 47 million trips, Canadians travelled more overseas
and less to the US. Travellers from the US, however, came in larger
numbers - 43.9 million trips, an increase of 8.3 per
cent in 1998 from 1997. Trips by overseas (non-U.S.) travellers
were 4.2 million, a drop of 8.3 per cent.
Figure 10-7, which presents the distribution of international
travellers coming to Canada from 1980 to 1998, shows a steady
increase in past years of the number of US travellers coming to
Canada.
Canada/US Travel
In 1998, Canada/US travel accounted for 91 per cent of all
international trips to and from Canada. The most important part
of this travel was same-day automobile, which accounted for 64
per cent of all trips between the two countries.
There has been a major shift in Canada/US travel. In 1998,
there was a surge in the number of Americans making same-day trips
to Canada, while the number of Canadians going to the US has been
falling for some time. In 1998 as well, the number of same-day
and overnight trips that Americans took to Canada exceeded the
number of similar trips that Canadians took to the US. This shift
is likely attributable to the fall in the value of Canadian currency
accompanied by the strong US economy.
Figure 10-8 shows the number of same-day Canada/US automobile
excursions in 1998, while Figure 10-9 shows the number of overnight
excursions. Both illustrate that a shift has taken place.
Distribution of Travel
For same-day visits in 1997, New York and Michigan were by
far the most popular destinations for Canadians, accounting for
18.4 per cent and 8.3 per cent respectively of the total
same-day visits.
For stays of one night or longer, the most popular states were
New York, accounting for 11.3 per cent of the total trips in 1997;
Florida, for 9.9 per cent ; Washington, for 8.9 per cent; Michigan,
for 6.2 per cent; and California, for 4.7 per cent.
In 1997, overnight trips to Florida increased 9.7 per cent,
while overnight trips to California increased 7.4 per cent. Overnight
trips to New York, however, fell nine per cent.
Purpose of Travel
Canadians and Americans have similar reasons for travelling
between the two countries. In 1997, pleasure trips, including
recreation and holiday trips, accounted for 57 per cent of all
trips for both Canadians travelling to the US and for Americans
travelling to Canada. Visiting family and friends, accounted for
18 per cent of Canadian trips and 17.7 per cent of UStrips. Business
was the primary purpose for 15.5 per cent of Canadian trips
and 15.7 per cent of US trips. Personal reasons, such as health
and religion, made up the remaining 9.4 per cent of Canadian
trips and the 9.8 per cent of American trips.
Figure 10-10 illustrates 1997 Canada/US travel according to
the purpose of the travel.
Means of Travel
As previously mentioned, same-day automobile trips are the
most important part of Canada/US travel. In 1998, Canadians used
a car to take 96.8 per cent of the 29.3 million same-day trips
they made to the US Similarly, Americans used a car to make 93.4 per
cent of the 29 million same-day trips they made to Canada. Bus
was the next most important mode of transportation, accounting
for 2.4 per cent of Canadian same-day trips and 3.3 per cent
of American trips.
For overnight trips, automobile travel was less dominant but
still the most important mode of travel. Of the 13.4 million overnight
trips that Canadians took to the US in 1998, 56.6 per cent were
taken by car, while the figure was 63.1 per cent for
Americans taking overnight trips to Canada. Air was the next most
important mode for overnight travel, accounting for 34 per
cent of Canadian trips and 25 per cent of American trips.
Table 10-4 illustrates Canada/US travel by mode in 1998.
Travel between Canada and Countries other than the US
World economic developments have had a major impact on overseas
travel to Canada. The two major factors were the fall in both
European and Asian currencies, and the Asian financial crisis.
After losing value in 1997 and the early part of 1998, most European
currencies regained some of their strength in the latter part
of 1998, but the Asian currencies still remained weak. Unfortunately,
these developments affected some of Canada's major overseas travel
markets.
From 1996 to 1997, the number of Asian travellers to Canada
fell 9.5 per cent and declined a further 21 per cent in 1998.
The number of Japanese travellers to Canada, who make up over
40 per cent of Asian travellers to Canada, declined 14 per
cent in 1997 and 16 per cent in 1998. Consequently, Asia's share
of overseas trips to Canada has fallen from 35 per cent in 1996
to 29 per cent in 1998.
The number of European travellers to Canada - Canada's
largest overseas tourist market - also declined, dropping
2.2 per cent in 1997 from the previous year and declined
a further 2.4 per cent in 1998.
Despite this overall decline in European travellers, however,
the number of travellers from the United Kingdom increased by
5.8 per cent in 1997 and a further 1.2 per cent in 1998.
By contrast, travellers to Canada from Germany declined by 12
per cent in 1997 and a further five per cent in 1998. Similarly,
the number of travellers to Canada from France declined four per
cent in 1997 and nine per cent in 1998.(Figure 10-11) As most
currencies fell against the US dollar, there has also been a reduction
in overseas trips via the US, declining 12.9 per cent in 1997
and 15.7 per cent in 1998.
Figure 10-12 shows visitors to Canada from Asia between 1990
and 1998, while Figure 10-11 shows visitors to Canada from Europe
between 1990 and 1998 as well as the relative values of the currencies.
Figure 10-13 presents the source of the overseas travellers entering
Canada in 1998.
Distribution of Travel
Ontario was the most popular destination for international
travel, attracting 45 per cent of all international trips in 1997.
British Columbia was the second most popular with 22 per cent.
For all provinces except Quebec and Alberta, travellers from countries
other than the US make up between 20 and 25 per cent of the visitors,
while in Quebec and Alberta, they make up just under 40 per cent.
Figure 10-14 shows the 1997 provincial destinations of international
travellers staying at least one night.
In 1997, large changes in the source of overseas trips occurred
in British Columbia, Alberta, and The Atlantic Provinces (Nova
Scotia, New Brunswick, Prince Edward Island and Newfoundland).
Trips by overseas travellers declined by about 20 per cent in
both British Columbia and Alberta, although British Columbia was
able to offset most of this decline from an increase in US visitors.
Trips by overseas travellers increased by 11 per cent in the Atlantic
Provinces. Other provinces had much more modest changes.
Canadian Travel Overseas
In 1997, Canadians increased their travel to other countries
by 8.5 per cent and data for the first nine months shows further
increases in 1998. Although Canadians reduced their trips to Europe,
they increased their trips to the United Kingdom by 11 per cent
in 1997. Europe, however, still remains the most popular overseas
destination for Canadians, accounting for 41 per cent
of the total overseas trips. The number of trips to Asia rose
nine per cent from 1996, while trips to Mexico rose 30 per cent.
The number of Canadian trips to other sunspots also increased.
Figure 10-15 shows the distribution of Canadian travel to countries
other than the US in 1997.
Reason for Canadian Travel Overseas
As in other types of Canadian travel, pleasure trips were the
biggest reason for overseas travelling, accounting for at least
50 per cent of travel to and from countries other than the US
in 1997. Non-business travel by overseas travellers fell seven per cent
in 1997, while it rose seven per cent for Canadians. Business
travel rose about 14 per cent for both Canadians and
other non-US travellers, accounting for 18 per cent
of both Canadian and overseas travel in 1997.
Figure 10-16 shows the distribution of Canadian overseas travel
by purpose for 1997.
Means of Travel
Virtually all international travel to and from overseas takes
place by air, including to and from Canada. Despite this, approximately
20 per cent of overseas travellers entered Canada by land from
the US; 16 per cent of Canadians returning by air from countries
other than the US returned via the US; and 33 per cent of non-Americans
coming to Canada by air came via the US.
The Travel Account and International Passenger Fares
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