Tourism spending rises slightly

Tourism spending in Canada increased 0.3 per cent in the third quarter, the first such rise in more than a year, according to Statistics Canada.

The increase has ended the longest downturn since the early 1990s, according to the federal agency.

Tourism spending fell 3.1 per cent in real terms from the second quarter of 2008 compared to the same quarter in 2009. Even when Canada, Toronto in particular, was battling severe acute respiratory syndrome (SARS), the decline lasted just two quarters during 2003, although spending fell 5.8 in that time.

Outlays were higher across all major tourism categories. Spending on accommodation was up 1.6 per cent in the third quarter, following a 2.8 per cent decline in the previous quarter. Expenditures on passenger air transportation also rebounded, as travel abroad increased compared to the previous quarter.

Spending was lower for travel services and other transportation, including by taxi and water.

Spending by Canadians travelling within Canada rose by almost one per in the third quarter last year, leaving many in the tourism industry cautiously optimistic.

"It's a bright light for us when we look at 2010," said Julie Canning, president of Banff Lake Louise Tourism. "It's a signal for us that Canadians are having a chance to experience their country."

The picture wasn't so bright on the international side.

Spending by international visitors fell 2.4 per cent in real terms in the third quarter, the seventh consecutive quarterly decrease. International tourism spending in the third quarter was 15.4 per cent below where it stood in the fourth quarter of 2007.

International visitors spending less

Spending by international visitors was down across the board, with weakness notably in recreation and entertainment, vehicle fuel, repairs and parts, and accommodation.

The number of overnight travellers to Canada from the United States and other countries was down 1.7 per cent during the third quarter, while the number of same-day travellers fell 8.6 per cent.

"Overseas visits are still down more than 14 per cent year over year," said Doug Firby of Sunshine Ski Resort. "But what we've noticed actually since the beginning of the new year is there's been a slight increase in the number of visitors to the resorts in Alberta."

Tourism officials are also optimistic that the upcoming Olympics — with a world-wide television audience of three billion — will make foreign viewers want to spend their holidays in Canada.