Tourism industry in Canada

Changing demographics, shifting travel patterns and volatile economic conditions are increasing the pressure on industry stakeholders to develop effective campaigns and business strategies. (source:www.tourism.gc.ca)

Trips by Canadians in Canada, by province and territory (Person-trips (destination))
	2006	2007	2008	2009	2010
	Person-trips (destination)
	thousands
Canada	207,470	214,559	214,498	227,121	229,158
Newfoundland and Labrador	3,068	2,939	3,006	3,256	3,500
Prince Edward Island	1,018	1,057	1,082	1,196	1,091
Nova Scotia	7,318	7,087	7,131	7,604	8,115
New Brunswick	5,254	5,349	4,937	5,358	5,458
Quebec	57,278	57,240	58,410	62,736	60,169
Ontario	83,036	86,903	84,995	88,412	90,174
Manitoba	7,275	7,294	7,109	7,935	7,984
Saskatchewan	7,874	8,164	8,028	8,464	8,624
Alberta	17,364	20,052	20,601	20,398	21,558
British Columbia	17,908	18,418	19,126	21,619	22,380
Yukon/Northwest Territories/Nunavut	77E	56E	74E	144E	F
E : use with caution.

Source: statistics Canada

 As we can see from the table during the recession in 2008 the overall amount of trips slowed down. Government revenue attributable to tourism activities in Canada declined 3.7% to $19.2 billion in 2009. This was the first decrease since 2003. Source: ctatistics Canada)

It started to rise when the economy recovered that can lead to the conclusion that tourism industry has high elasticity of demand and income elasticity However, outbound travel is currently expanding at a faster pace than domestic travel is, fuelled by a strong Canadian dollar and better value for money. The cross-elasticity shows that lower prices for overseas destinations will decrease domestic travel. Availability of many substitutions makes that industry more cross- elastic.

While the Canadian market is expected to continue to strengthen through 2011, rising travel costs could well dampen the recovery, with increasing airfares, gas prices and hotel rates all expected to take their toll. The table below shows that Canada is experiencing slowdown in foreign visitors while there is an increase in domestic travelers.

One of the explanations is aging population. There is a rapid growth in the seniors’ market segment as the baby-boom generation reached 65 years of age in 2011. It is estimated that seniors will represent 25 percent of Canada's overall population by 2026. Most of baby-boomers have the vacation property in Canada where they spend more time now.

 

The tourism labour market is characterized as a seasonal, fragmented, multi-faceted service industry, with a large number of entry-level jobs. The seasonal nature of the tourism industry is contributing to the development of dual labour markets, comprised of core workers and
peripheral ones. In many cases, employees view tourism as a gateway into the labour market.Approximately 60 percent of tourism employment is within the food and beverage, and accommodation sectors (see below). These are the areas most in need of a stable and skilled workforce. And perhaps that was a reason why total tourism employment in Canada is falling.

 Source:Statistics Canada National Tourism Indicators.