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National tourism indicators, second quarter 2022

Released: 2022-09-28

Tourism spending in Canada grew 19.8% in the second quarter, a fifth consecutive quarterly increase. Tourism gross domestic product (GDP) (+20.4%) and jobs attributable to tourism (+11.2%) also rose in the second quarter.

Travel restrictions impacting tourism activities during the first quarter of 2022 were eased effective February 28, allowing the tourism sector to continue its recovery in the second quarter. More visitors from outside of Canada were admitted, and passenger air travel expanded services. With this most recent increase, tourism spending in the second quarter was 21.7% lower than the pre-COVID-19-pandemic levels of the fourth quarter of 2019.

Passenger air transport (+65.8%) was the largest contributor to growth in tourism spending, accounting for over one-half of the growth in the second quarter. Accommodation (+16.4%) and food and beverage services (+13.9%) were the next largest contributors to growth in the second quarter.

Chart 1  Chart 1: Tourism spending increases
Tourism spending increases

Tourism GDP grew 20.4% in the second quarter, following a 1.1% decrease in the first quarter. Transportation services (+56.0%) were the greatest contributor to the growth in tourism GDP. With economy-wide GDP up 0.8% in the second quarter, tourism's share of GDP increased 0.2 percentage points to 1.5%. Overall, tourism GDP was 77.6% of its pre-pandemic level.

Employment attributable to tourism rose in the second quarter, up 11.2%, following a 0.5% increase in the first quarter. Employment in food and beverage services (+13.5%) and accommodation services (+10.5%) were the largest contributors to growth in the second quarter. Overall, employment in Canada rose 1.3% in the second quarter and as a result, tourism's share of employment increased from 2.8% in the first quarter to 3.1% in the second.

Chart 2  Chart 2: Tourism gross domestic product and jobs attributable to tourism rise
Tourism gross domestic product and jobs attributable to tourism rise

Growth in tourism spending led by international visitors

Tourism spending by international visitors was up 71.3% in the second quarter, following a 6.6% decrease in the previous quarter. Accommodation services (+64.7%) followed by passenger air transport (+87.4%) were the main contributors to the second quarter increase.

Tourism spending by international visitors accounted for 20.5% of total tourism spending in Canada in the second quarter, up from 14.4% in the first quarter. Despite accounting for about one-fifth of tourism spending, international visitors contributed more to overall growth than domestic tourists in the second quarter.

Chart 3  Chart 3: Share of tourism spending by international visitors increases
Share of tourism spending by international visitors increases

Tourism spending in Canada by Canadians increases

Tourism spending in Canada by Canadians increased 11.1% in the second quarter. Domestic spending on passenger air transport (+60.5%), which also includes international air travel by Canadians using Canadian carriers, was the main contributor to growth. Canadian overnight travellers returning to Canada from other countries by air increased 81.7% in the second quarter.

Government revenue attributable to tourism increases in 2021

Tourism is an important source of revenue for all levels of government, contributing $20.9 billion in 2021, up 10.1% from 2020. Federal, provincial and territorial governments collected 94.2% of the government revenue generated by tourism in 2021. The remainder was collected by municipal and Aboriginal governments. Domestic tourism spending accounted for the vast majority (90.7%) of this revenue, with the remainder coming from tourism exports.

Taxes on products sold to final consumers ($10.2 billion), such as the goods and services tax and the harmonized sales tax, were the largest source of government revenue attributable to tourism in 2021, followed by corporate and individual income tax ($5.6 billion).

Every $100 spent by resident visitors generated, on average, $35.31 in government revenue in 2021, down slightly from $35.45 in 2020. Non-resident visitors generated $40.69 in revenue for every $100 spent in 2021, essentially unchanged from a year earlier. Overall, every $100 in tourism spending by resident and non-resident visitors generated $35.75 in government revenue, down 0.5% from 2020.



Sustainable development goals

On January 1, 2016, the world officially began implementing the 2030 Agenda for Sustainable Development, the United Nations' transformative plan of action that addresses urgent global challenges over the next 15 years. The plan is based on 17 specific sustainable development goals.

The national tourism indicators are an example of how Statistics Canada supports the reporting on the global goals for sustainable development. This release will be used in helping to measure the following goal:

  Note to readers

Growth rates for tourism spending and gross domestic product (GDP) are expressed in real terms (that is, adjusted for price changes), using reference year 2012, as well as adjusted for seasonal variations, unless otherwise indicated.

Employment data are also seasonally adjusted.

Tourism's share of economy-wide GDP is calculated from seasonally adjusted nominal values.

Tourism's share of economy-wide employment is calculated using seasonally adjusted values.

For information on seasonal adjustment, see Seasonally adjusted data – Frequently asked questions.

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

Economy-wide GDP is obtained from table 36-10-0104-01.Economy-wide employment is obtained from table 36-10-0207-01. Canadian overnight travellers returning to Canada from other countries by air is obtained from table 24-10-0054-01.

Non-tourism industries, also referred to as other industries, are industries that would continue to exist in the absence of tourism. For example, the crop production and petroleum refineries industries produce products purchased by tourists. However, neither would cease to exist in the absence of tourism. Tourism GDP takes into account the production of these products purchased by tourists.

Non tourism products, also referred to as other products, are products for which a significant part of its total demand in Canada does not come from visitors, such as groceries, clothing and alcohol bought in stores.

With the second quarter of 2022 release of the national tourism indicators, all data from the first quarter of 2022 have been revised.

Revisions over the 2020 to 2022 period are expected to be higher than normal due to the volatile economic situation, particularly for the tourism sector.

The national tourism indicators are funded by Destination Canada.

Next release

Data on the national tourism indicators for the third quarter of 2022 will be released on January 6, 2023.

Products

The data visualization product "Provincial and Territorial Tourism Satellite Account," which is part of Statistics Canada – Data Visualization Products (Catalogue number71-607-X), is available.

The Economic accounts statistics portal, accessible from the Subjects module of the Statistics Canada website, features an up-to-date portrait of national and provincial economies and their structure.

The Latest Developments in the Canadian Economic Accounts (Catalogue number13-605-X) is available.

The User Guide: Canadian System of Macroeconomic Accounts (Catalogue number13-606-G) is available.

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

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; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).

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