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National tourism indicators, third quarter 2016

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Released: 2017-01-05

Tourism spending in Canada

$21.3 billion

Third quarter 2016

2.2% 

(quarterly change)

Tourism spending in Canada grew 2.2% in the third quarter, following a 1.1% gain in the second quarter. This was the 14th consecutive quarterly increase and the largest since the second quarter of 1997.

Both tourism spending by Canadians at home and by international visitors in Canada posted strong growth in the third quarter.

Chart 1  Chart 1: Tourism spending in Canada rises for 14th consecutive quarter
Tourism spending in Canada rises for 14th consecutive quarter

Tourism spending by Canadians increases at fastest pace in five years

Tourism spending by Canadians in Canada increased 2.0% in the third quarter, following a 1.3% gain in the second quarter. This was the fastest pace of growth since the first quarter of 2011.

Growth was mainly driven by passenger air transport (+4.3%), with motor vehicle fuel (+2.6%) and accommodation (+2.0%) also contributing. Tourism spending on non-tourism goods and services, such as groceries and clothing, increased 0.5%. Conversely, outlays on travel services declined 0.8%.

Chart 2  Chart 2: Increased tourism spending by Canadians at home
Increased tourism spending by Canadians at home

Spending by international visitors rises

Spending by international visitors in Canada rose 3.1% in the third quarter, after increasing 0.5% in the second quarter.

Passenger air transport (+7.2%) was the largest contributor to the increase, with accommodation (+2.7%) and food and beverage services (+2.0%) also playing a part. Recreation and entertainment (+2.1%) rebounded following a 2.9% decline in the second quarter.

Record air travel from both the United States and overseas countries contributed to the increase in tourism spending by international visitors.

Chart 3  Chart 3: Tourism spending by international visitors up
Tourism spending by international visitors up

Tourism gross domestic product up

Tourism gross domestic product (GDP) grew 2.6% in the third quarter, following a 0.7% gain in the previous quarter. This was the largest quarterly increase since the second quarter of 1997. By comparison, the national GDP grew 1.0% in the third quarter, following a 0.3% decline in the second quarter.

The increase in tourism GDP was driven by accommodation (+5.0%) and transport (+3.0%). Tourism GDP in non-tourism industries (+1.1%) also increased.

Tourism employment rose 1.2% following a 0.5% gain the previous quarter. Food and beverage services (+1.3%), recreation and entertainment (+2.6%) and accommodation (+1.2%) all contributed to tourism job growth. Tourism jobs in non-tourism industries (+0.9%) also increased, while jobs in travel services (-0.5%) declined.


  Note to readers

Growth rates for tourism spending and gross domestic product are expressed in real terms (that is, adjusted for price changes), at 2007 constant prices, as well as adjusted for seasonal variations, unless otherwise indicated. Employment data are also seasonally adjusted. For information on seasonal adjustment, see Seasonally adjusted data – Frequently asked questions.

Associated percentage changes are presented at quarterly rates unless otherwise noted.

With the third quarter of 2016 release of the national tourism indicators, all data for the first and second quarters of 2016 have been revised.

The national tourism indicators are funded by Destination Canada.

Products

The System of Macroeconomic Accounts module features an up-to-date portrait of national and provincial economies and their structure.

The Methodological Guide: Canadian System of Macroeconomic Accounts (Catalogue number13-607-X) is available.

The User Guide: Canadian System of Macroeconomic Accounts (Catalogue number13-606-G) is also available. This publication will be updated to maintain its relevance.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).

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