Tourism spending in Canada grew 2.6% in the first quarter, due to an increase of 3.5% in domestic tourism spending by Canadian residents, according to Statistics Canada. Tourism gross domestic product (GDP) (+2.3%) and jobs attributable to tourism (+2.7%) also rose in the first quarter.

Passenger air transport (+2.9%) contributed the most to the growth in tourism spending in the first quarter, followed by food and beverage (+4.7%) and accommodation (+2.2%) services. As a result of this continued overall growth, tourism spending rose to 86.7% of its level in the fourth quarter of 2019, before the COVID-19 pandemic.

Tourism GDP grew 2.3% in the first quarter of 2023, the same growth rate as the fourth quarter of 2022. In the first quarter of 2023, food and beverage (+4.3%) and accommodation (+2.1%) services industries were the largest contributors to the growth. With economy-wide GDP increasing 0.8% in the first quarter, tourism’s share of GDP rose 0.04 percentage points to 1.65%. Overall, tourism GDP was 84.4% of its pre-pandemic level.

Employment attributable to tourism rose 2.7% in the first quarter of 2023, following an increase of 1.4% in the previous quarter. In the first quarter of 2023, food and beverage (+3.6%) and accommodation (+3.2%) services industries were the largest contributors to the growth. Economy-wide employment increased 1.7% in the first quarter. As a result, tourism’s share of employment grew to 3.30%.

Tourism spending in Canada by Canadians rises

Tourism spending in Canada by Canadians increased 3.5% in the first quarter of 2023, following a 1.3% decline in the previous quarter. In the first quarter of 2023, increased spending on passenger air transport (+4.6%), food and beverage (+6.1%) and accommodation (+4.4%) services contributed most to the rise.

Spending by international visitors edges down

However, tourism spending by international visitors edged down 0.1% in the first quarter of 2023, after double-digit increases in each of the last three quarters of 2022. In the first quarter of 2023, declines in passenger air transport (-3.2%) and accommodation services (-0.6%) were mostly offset by growth in non-tourism products (+2.7%), vehicle fuel (+7.5%) and vehicle repairs and parts (+6.8%). Overnight travel by non-residents declined 0.4%, while same-day travel by non-residents increased 10.5%.

International travel

The new figures from StatsCan also indicated that Canadians are taking more trips outside the country this year compared with 2022, though travel hasn’t yet returned to pre-pandemic levels.