Annual Survey of Traveller Accommodation

Tourism grew at a faster rate than the rest of the economy in 2004. After two years of decline, tourism spending increased by 4.8% in 2004, with spending on air transportation soaring by 10.3% while accommodation spending grew by 4.7%.

Overall, the traveller accommodation industry posted higher revenues and operating profits compared to the year before. There were almost 15,000 establishments in the tourism industry in 2004 and they generated operating revenues of $13.1 billion, up 6.1% from 2003 in current dollars. Operating profits increased from 10.7% in 2003 to 14.7% last year.

Hotel occupancy rates increased to 63% in 2004, a notable jump from 59% in 2003, which was one of the worst years for the hotel industry. The demand for hotels had been following a downward trend since the beginning of the millennium until it hit a record low in 2003.

Hotels, regardless of where they were located, had higher occupancy rates in 2004. Airport hotels experienced the largest gains, as occupancy rates jumped to 67% from 61% in 2003. This could partly be explained by the general recovery of long-haul traffic as well as the strong demand for air transport and accommodation. In fact, the number of international travellers (excluding those entering from the United States) entering Canada grew for the first time since 2000.

From a regional perspective, hotels and motels in Quebec, Ontario and the Western provinces posted higher operating revenues in 2004 compared to 2003, led by British Columbia (+12.7%) and Alberta (+7.7%). British Columbia and Alberta also experienced an increase in the number of trips made by Canadian residents compared to 2003. There were also significantly more international travelers visiting Montréal, Toronto, Niagara Falls, Alberta and Vancouver in 2004 compared to 2003. Most provinces posted double-digit profits, led by Alberta at 19.1%.

Data for 2004 for the traveller accommodation industry (NAICS industry category 721, which includes hotels and motor hotels, motels and other accommodation industries) are now available. These data provide information on revenue, expenses, salaries and wages, and profit margins.

Available on CANSIM: table 351-0002.

Definitions, data sources and methods: survey number 2418.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Irene Ross (613-951-6305; irene.pucci@statcan.gc.ca) or Veronica Utovac (613-951-0813; veronica.utovac@statcan.gc.ca) Service Industries Division.