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Policy Group
Policy Overview
Transportation in Canada Annual Reports

Table of Contents
Report Highlights
Addendum
1. Introduction
2. Transportation and the Canadian Economy
3. Government Spending on Transportation
4. Transportation and Safety
5. Transportation - Energy & Environment
6. Transportation and Regional Economies
7. Transportation and Employment
8. Transportation and Trade
9. Transportation and Tourism
10. Transportation Infrastructure
11. Structure of the Transportation Industry
12. Freight Transportation
13. Passenger Transportation
14. Price, Productivity and Financial Performance in the Transportation Sector
Minister of Transport
List of Tables
List of Figures
List of Annexes
 
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9

TRANSPORTATION AND TOURISM

Travel Overview

Table 9-2 presents an overview of domestic travel by Canadians in 1999 and of international travel by both Canadians and non-residents in 1999 and 2000.

Domestic Travel

Canadians took 143.2 million domestic travel trips in 1999, an increase of just under one per cent, compared with an increase of 13 per cent in 1998. Same-day trips increased 1.4 per cent while overnight trips rose only marginally. Interprovincial trips rose more than intraprovincial trips for both same-day and overnight trips. In fact, overnight intraprovincial trips actually fell marginally.

Distribution of Travel by Province

As can be seen in Figure 9-4, travel volumes by province reflect the distribution of the Canadian population. In 1999, the most populous province, Ontario, was the destination for 35 per cent of total domestic trips, followed by Quebec with 21 per cent, Alberta with 13 per cent and British Columbia with 11 per cent. This pattern also holds true for the number of trips taken by provincial residents. The largest differences between the relative population size and the relative number of trips taken are in Alberta. Albertans took about four per cent more trips than their relative population size. Quebec on the other hand, took about three per cent less.

On a per capita basis, Canadians each took 4.7 trips in 1999. The residents of Alberta, Saskatchewan and New Brunswick travel the most, around seven trips per year; the residents of Prince Edward Island and British Columbia travel the least, taking just under four trips per year. The number of trips taken by residents of Prince Edward Island has risen by about one trip per year since the Confederation Bridge opened. About 13 per cent of all trips in Canada were interprovincial trips.

Purpose and Mode of Travel

In 1999, Canadians took 55.4 million trips for pleasure, which represented 39 per cent of total trips, a two per cent increase over 1998. Of total trips, Canadians took 50.2 million, or 35 per cent to visit friends and relatives, a one per cent drop from 1998. Trips for business or to attend conventions made up 14 per cent of total trips, while 13 per cent were for personal reasons. These percentages were unchanged from the previous year.

As Table 9-3 shows, the automobile is by far the most dominant means of transport. Overall, it accounted for 91.8 per cent of all trips taken in 1999, a proportion that remains virtually unchanged from 1998. For same-day trips, the automobile accounted for 96.2 per cent of trips compared with 87.7 per cent for overnight trips. The second most common means of transportation is the airplane, which accounted for 4.2 per cent of all travel. There was a drop of one per cent in overnight business travel by airplane in 1999.

International Travel

The total number of travellers who crossed Canadian borders in 2000 rose 0.3 per cent to 95.8 million, reversing a decline in trips in 1999. Canadians increased their trips to both the United States and other destinations, with total international trips rising by 1.6 per cent to 47.2 million. There was a 1.1 per cent increase in the trips by Canadians to the United States compared with a 1.3 per cent decline in 1999. The number of Canadians travelling overseas increased by 6.2 per cent, up substantially from a less than one per cent increase in 1999. Americans took 44 million person-trips, or 1.4 per cent fewer trips to Canada in 2000, while other nationalities took 4.6 million person-trips, or 4.9 per cent more trips. Figure 9-5 shows trends in international travellers entering Canada between 1980 and 2000.

Canada-US Travel

Overall, travel between Canada and the US fell marginally, by 0.2 per cent, in 2000 to 86.6 million. This is attributable to a fall in US travel to Canada that was steeper than the rise in Canadian travel to the United States. Same-day automobile trips continued to be the most prevalent, accounting for 62.2 per cent. While this proportion was about 66 per cent from 1987 to 1997, it has been falling over the past three years.

Putting an end to a four-year downward trend, same-day visits by Canadians to the United States were stable in 2000 at 28.1 million. Overnight visits rose 3.5 per cent to 14.6 million; this continues the upward trend of 1999, which had a 5.0 per cent increase. American same-day trips fell 1.9 per cent to 28.9 million and overnight trips fell 0.4 per cent to 15.1 million. Overnight trips in both directions fell from May to August, reflecting the price of gas and the cool, damp summer. Figures 9-6 and 9-7 show the trends in same-day and overnight travel between Canada and the United States.

Distribution of Travel

In 1999, the number of Canadians travelling to the United States increased by 4.9 per cent over 1998. There was little change in the popularity of the destinations. New York and Michigan accounted for 18 and eight per cent, respectively, of the total same-day visits in 1999 and Pennsylvania and Vermont each accounted for six per cent. The top states for overnight stays remained New York, with 12 per cent of total trips in 1999, Florida and Washington each with nine per cent, Michigan with six per cent and California with five per cent.

For Americans travelling to Canada in 1999, Ontario was by far the most popular province, accounting for 47 per cent of total overnight trips. As indicated in Figure 9-8, British Columbia accounted for 25 per cent and Quebec for 15 per cent, while Alberta and the Atlantic provinces accounted for nine and seven per cent, respectively.

Purpose of Travel

An increasing number of Canadians continue to make overnight trips to the United States for business purposes. In 1999, business travel accounted for 19 per cent of trips, virtually unchanged from 1998, but up from the 16 per cent share in 1996 and 1997. Conversely, there was a drop in trips by Canadians for pleasure purposes in 1999, from 57 to 52 per cent. The number of trips to visit friends and relatives continued to rise in 1999, making up 19.5 per cent of overnight travel, up from 17 per cent in 1996. The remaining proportion of overnight trips, about nine per cent, was taken for other reasons such as health and religion.

In contrast, the proportion of overnight trips to Canada taken by Americans has remained stable for the past several years. Pleasure, including recreation and holiday, was the primary reason for 57 per cent of American overnight trips to Canada in 1999. Visiting friends and relatives remains the reason for 18 per cent of trips, while business is the purpose for 16 per cent.

Means of Travel

While Table 9-4 shows that the automobile was used for most Canada-US travel in 2000, there have been small increases in the use of other modes over the past several years. This trend is strongest in overnight travel. Between 1996 and 2000, for example, the percentage of Canadians using an automobile to take overnight trips to the United States fell from 63 per cent to 55 per cent. Over the same period, airplane travel has risen steadily from 29 to 36 per cent. There have also been steady marginal increases in the use of other modes. For same-day traffic, although the automobile remained dominant with about 97 per cent in 2000, there has been a steady but small drop in this proportion.

While not as pronounced, there has also been a drop in the use of the automobile by Americans coming to Canada. Since 1996, the percentage of Americans coming to stay for one night or more in an automobile has fallen by two per cent to 62.5 per cent, while the proportion who come by airplane has risen by two per cent to 25.4 per cent. The number of Americans who come by car for same-day trips has fallen by almost one per cent to 92 per cent.

The proportion of Canadians returning to Canada by air from countries other than the United States via the United States was 15.7 per cent in 2000, similar to the previous four years. After rising to 38 per cent in 1999, the proportion of non-Americans coming to Canada by air via the United States returned to 33 per cent, where it had been for 10 years.

Business Travel between the US and Canada

From 1990 to 1999, business travel grew by an average rate of 0.8 per cent per year, while non-business travel fell 2.6 per cent per year. Business travel between Canada and the United States has grown by 0.8 per cent per year over the past 10 years. This has occurred as the North American economy has grown and become more integrated following the signing of the Canada-US Free Trade Agreement (FTA) in 1987 and the North American Free Trade Agreement (NAFTA) in 1992, and with the Open Skies policy of 1995, which allowed freer air travel between the two countries.

While this overall trend in business travel growth has remained constant over the past 10 years, there have been differences in the travel by Canadians and Americans, and in air compared to automobile travel. Figures 9-9 and Figure 9-10 present information on Canadian and American business travellers to the United States by air and car. Business travel by air over this period has grown strongly, at 4.7 per cent a year, while business travel by automobile fell 1.6 per cent a year. Overall business travel by Canadians to the United States barely grew between 1990 and 1999; however, business travel by Americans grew at an average rate of 1.9 per cent per year.

Business air travel by Canadians to the United States rose 5.3 per cent a year between 1990 and 1999, while by Americans to Canada it grew 3.9 per cent a year. Growth was greatest by both Americans and Canadians to and from the southern states. For Canadians, this was highlighted by more trips to Florida, which rose by almost 100,000 a year over the period; for Americans, it meant more trips from all the southeastern states. For both Canadians and Americans, the share of trips between Canada and the southern states rose from 28.8 per cent to 33.3 per cent, as the total number of trips rose by 6.4 per cent a year. At same time, trips to the western US grew by 5.3 per cent a year and the share of all air trips to the west rose by just over one per cent. The number of trips by Canadians from Ontario to California grew by about 70,000 a year, making up over half of the total visits by all Canadians to the western United States. The number of business trips to the northeastern and the north-central regions rose over the period; however, their share of total air business trips fell.

From 1990 to 1999, total business travel by automobile fell despite a marginal increase in the number of trips by Americans. This overall drop was due to a decline of 2.7 per cent a year in trips by Canadians. Canadian business trips to all regions paralleled the general drop in automobile travel to the United States. Business travel by Canadians to the north-central region of the United States, however, had the smallest drop, at 1.3 per cent a year. This region's share of trips rose from 35 to 40 per cent, while the shares of all other regions fell. For Americans coming to Canada on business, the number of trips fell only for those originating in the northeastern and the southern states.

As shown in Tables 9-5 and 9-6, in 1999 at least 55 per cent of business travel by both air and automobile between Canada and the US had Ontario as either the origin or the destination. For air travel, Quebec, British Columbia and Alberta were the next most popular provinces accounting for 17.2 per cent, 10.5 per cent and 8.3 per cent respectively for Canadian business travellers and 18.2 per cent, 13.8 per cent and 8.2 per cent for US business travellers. These rankings were similar in 1990 although there was an increase in the share from Ontario of about two per cent and a corresponding drop in the share from Alberta. Between 1990 and 1999, Canadian business travellers from all provinces increased their trips although the growth was strongest for residents from Newfoundland and New Brunswick, while for US travellers, there was a fall in trips to the three Maritime provinces and the Territories.

In 1999, business travel by automobile, after Ontario the next most popular provinces were British Columbia followed by Quebec and New Brunswick. For Canadian business travellers, 13.6 per cent came from British Columbia, 12.3 from Quebec and 9.2 from New Brunswick. As total automobile business travel by Canadians fell from 1990 to 1999, these provincial shares all dropped from 1990 by one or two percent while Ontario's rose five percent. For US business travellers, 61.8 per cent went to Ontario, 15.4 per cent to British Columbia, 9.7 per cent to Quebec and 6.8 per cent to New Brunswick. Overall from 1990 to 1999, US business travel remained at the same level, although it grew in Ontario, British Columbia, Alberta and Prince Edward Island, while falling in the other provinces.

Travel Between Canada and Countries Other Than the United Sates

Overseas Travel to Canada

Visitors to Canada from overseas countries, from countries other than the US, rose by 4.9 per cent to 4.6 million in 2000, after an increase of 5.2 per cent in 1999. While overall, the number of Asian visitors increased by 6.8 per cent, the number of Japanese visitors fell by 1.9 per cent to 540,095, despite of an increase in the value of the yen. Visitors from South Korea rose sharply again in 2000, up 37.2 per cent to 149,000, following an increase of 50.3 per cent in 1999. The number of visitors from Australia and New Zealand rose 7.1 per cent to 217,000. The number of visitors from Europe increased as well, rising 3.4 per cent overall, but not from all countries. Visitors from the United Kingdom continued the steady increases of the last six years, as the number rose 10.9 per cent in 2000. Other countries showing increases included the Netherlands and Switzerland, whose visits rose 6.5 per cent and 3.2 per cent, respectively. Visitors from France and Germany reversed the increases of 1999, falling 2.5 per cent and 2.1 per cent respectively. These decreases reflected the drop in the value of the French franc and German mark. Visitors from Mexico increased by 10.6 per cent to 146,900 while visitors from South America increased by 6.2 per cent to 125,100.

Figures 9-11 and 9-12 show some important exchange rate and international visitor flow information, while Figure 9-13 shows the origin of visitors to Canada from countries other than the United States in recent years.

Distribution of Travel

In 1999, one third of overseas visitors to Canada chose Ontario as their destination. British Columbia was the second most popular, with 25 per cent, and Quebec third, with 18 per cent. Alberta was the destination for 14 per cent of visitors and Atlantic Canada for seven per cent, while the remaining three per cent went to Manitoba and Saskatchewan. Visits increased to all provinces except Quebec, where visits fell 3.3 per cent due to a drop in visitors from France. Overseas visitors to Atlantic Canada rose almost 30 per cent in 1999, with most coming from Europe. Figure 9-8 shows the destination by provincial region for overseas visitors staying at least one night.

Canadian Travel Overseas

In 2000, Canadians increased their trips to countries other than the US by 6.2 per cent, up from the less than one per cent increase in 1999. In 1999, trips to Cuba almost doubled, making Cuba the fourth most popular country destination for Canadians after the United Kingdom, Mexico and France. Cruise trips by Canadians were down 9.3 per cent after increasing by 18.8 per cent in 1998 and 27.6 per cent 1997. Trips to the United Kingdom remained constant, while trips to most European countries declined. Trips to Asia increased by about 1.5 per cent. Figure 9-14 shows which countries Canadians travelled to other than the United States from 1997 to 1999.

Overseas Travel: Purpose and Mode of Travel

Pleasure is the most common reason for overseas travel. As shown in Table 9-7, pleasure trips accounted for 49.6 per cent of travel to Canada by residents of countries other than the United States in 1999. A decade ago, this figure was 45 per cent. On the other hand, Canadian travellers returning to Canada from countries other than the United States gave pleasure as the reason for 59.8 per cent of their trips in 1999, up from 57 per cent for the past five years and almost regaining the 61.1 per cent level of 1990.

For travellers from overseas countries, the increase in pleasure trips has come at the expense of trips to visit friends and relatives, which made up 27.8 per cent of the trips in 1999, down from 31.8 per cent in 1990. Their trips for business have remained at around 18 per cent and trips for other purposes at around five per cent. For Canadians travelling to countries other than the United States, trips for business purposes made up 16.1 per cent of trips in 1999, down by about one per cent from 1998 but still up from the 14.3 per cent of 1990. Trips to visit friends and relatives made up 17.7 per cent of trips in 1999, down from the 18.4 per cent it had been in 1990. Canadian trips for other purposes have remained about six per cent over the 10 year period.

Of the 4.6 million non-resident travellers from countries other than the United States, 82 per cent arrived by air in Canada in 2000. This percentage has risen over the past four years from the 68 per cent it had been between 1990 and 1996. In 2000, 38 per cent of these overseas travellers entered Canada via the United States. Of these, 1.8 million, or 53 per cent, came by air, 43 per cent by land and four per cent by water. In 2000, 16 per cent of Canadians returning by air from countries other than the United States returned via that country, a proportion that has risen slightly in recent years.

 

TRANSPORTATION AND TOURISM

Tourism Expenditures

Travel Overview

 

CHAPTER 8

TABLE OF CONTENTS

CHAPTER 10

LIST OF TABLES

LIST OF FIGURES

LIST OF ANNEXES

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