National tourism indicators

Tourism spending advanced 0.8% in the first quarter of 2004, after a sharp 3.3% increase in the fourth quarter of 2003. Higher domestic tourism spending accounted for most of the gain, as spending by international visitors to Canada slowed down sharply from the fourth quarter of 2003.

Increased spending by international visitors

Spending by international visitors to Canada advanced 0.8% in the first quarter, down sharply from the 8.2% jump registered in the previous quarter. The number of international visitors to Canada fell 3.2%, entirely the result of fewer visitors from the United States.

Canada's international travel deficit slipped to $1.4 billion from $1.3 billion in the previous quarter, as Canadians' spending abroad outpaced non-resident spending in Canada. The deficit indicates that Canadian travellers spend more abroad than international visitors spend in Canada.

The rally of the Canadian dollar against the US dollar, which occurred throughout 2003, came to a halt in the first quarter of 2004. The higher dollar makes it cheaper for Canadians to travel abroad and more expensive for non-residents to visit Canada.

Canadians spending on tourism advances for third consecutive quarter

Domestic tourism spending increased 0.9% in the first quarter, after gaining 1.3% in the previous quarter.

Canadians' spending on air transportation was up 2.3% in the first quarter of 2004, a weaker pace than that registered in the second half of 2003. The number of Canadians travelling abroad edged up 0.5%, after increasing 5.4% in the fourth quarter of 2003, and 6.8% in the third.

Widespread advances in spending

Widespread gains were posted in the first quarter across most of the major components of tourism spending. However, the gains were weaker than in the fourth quarter of 2003, and spending on accommodation slipped.

Demand for accommodation edged down 0.4%, after jumping 5.7% in the previous quarter, as a result of lower spending by both Canadians and non-resident visitors to Canada.

Tourism employment picks up

Tourism employment picked up 0.5% in the first quarter, matching the pace of the previous quarter. The job gains were widespread across tourism industries, with a notable 1.6% increase in the air transportation industry.

Tourism GDP in tandem with economy

Tourism gross domestic product (GDP) advanced 0.6% in the first quarter, matching economy-wide GDP growth. Gains were registered for all the major tourism industries except the accommodation services industry. Tourism GDP slipped 0.6% in this industry.

Available on CANSIM: tables 387-0001 to 387-0010.

Definitions, data sources and methods: survey number 1910.

The first quarter 2004 issue of National Tourism Indicators (13-009-XIB, free) is now available on our website. From the Our products and services page, under Browse our Internet publications, choose Free, then National accounts. To order a paper copy of the publication (13-009-XPB, free), contact Client Services (613-951-3640; fax: 613-951-3618; iead-info-dcrd@statcan.gc.ca).

For more information, or to enquire about the concepts, methods or data quality of this release, contact the information officer (613-951-3640), Income and Expenditure Accounts Division.