It’s been a rocky year for economic growth in Canada. Low oil prices, a weak Canadian dollar, even the devastating Fort MacMurray fire have all helped to keep the economy sluggish.

But those same low gas prices and weak Canadian dollar are also helping to boost travel into and within Canada. Total overnight visits are expected to grow by 3 per cent this year and next, according to the latest Travel Markets Outlook presented by The Conference Board of Canada.

“The tourism sector is one of the handful benefiting from the low Canadian dollar. We’re seeing increased levels of both U.S. and international visitors that are nothing short of tremendous and restore much of the travel volume lost during the past decade,” said Greg Hermus, Associate Director for the Conference Board of Canada’s Canadian Tourism Research Institute.

So what’s boosting the interest in Canada? Beyond the obvious economic benefits of a Canadian vacation, the country is also perceived to be “safe,” a welcome lure as other high-profile international destinations struggle with media-grabbing acts of violence in what is perceived to be troubling times.

Travellers from the United States are particularly being lured by a Canada vacation. Traffic from south of the border grew by nearly 10 per cent last year it is expected to grow an additional 7.8 per cent this year. Overseas arrivals to Canada have also increased, to the tune of 8.7 per cent this year. Those numbers are also expected to increase again in 2017, although at a slightly slower pace, an estimated 6.4 per cent.

Domestic travel within Canada is also growing.  This year the number of Canadians travelling at home increased by 3.2 per cent. Growing consumer confidence and projected increases in disposable income are expected to contribute to more growth next year. The promotion of the 150th anniversary of Canada’s Confederation and Montréal’s 375th anniversary should also prove to be attractive reasons to travel in 2017.

As travel numbers rise, so will travel prices, accordingly. Overall rates increased by 3.7 per cent this year, and are expected to continue to rise between 2.1 and 2.3 per cent from 2017 through 2020.

Regional Highlights

The Travel Markets Outlook’s Metropolitan Focus highlighted tourism projections in nine major Canadian cities, most of which can expect tourism growth between 2 and 5 per cent for the coming year. At the centre of Canada’s 150^th celebration, Ottawa-Gatineau should see the biggest increases for the coming year. Not surprisingly, Alberta, with its low energy prices and ongoing recovery efforts, should experience the lowest growth rates for the coming year.

Halifax

The expected completion of The King’s Wharf waterfront project in spring 2017, should prove to be a lure to visitors to Halifax. Tourism is expected to grow by 3.1 per cent in 2017, on top of the 3.8 per cent growth in visitation projected for 2016.

Montréal

With Montréal celebrating its 375th anniversary in 2017, the city should see a healthy influx of visitors. Growth is expected to top 5 per cent in overnight visits next year, which is in addition to the anticipated 4.3 per cent increase for 2016.

Québec City

The recently completed Videotron Centre, a multi-use indoor arena, should help boost traffic to Québec City. Tourism is expected to increase by 3.7 per cent in overnight visits for 2016. In particular, the city has done exceptionally well with U.S. travellers, which are expected to jump by 8.9 per cent this year.

Ottawa-Gatineau

Overall visits to the city should grow by 3.4 per cent this year, but as celebrations for the 150th anniversary of Confederation get underway in 2017, the region should see a significant jump of 6.4 per cent. The city is also hosting a few big-ticket sporting events, including the 125th anniversary of the Stanley Cup and the 105th Grey Cup, which should also serve as a draw.

Toronto

In 2017, Toronto will host Prince Harry and his Invictus Games and the NHL Centennial Classic Game, which should help contribute to an anticipated slight 3.5 per cent growth in leisure travel.

Winnipeg

With the recent completion of the RBC convention centre, Winnipeg should see an increase in business travel to the region, which is expected to grow 3.6 per cent this year. Next year the city will host the Canada Games and welcomes a new outlet mall, which should help contribute towards a 3.3 per cent increase in overall overnight visits.

Calgary

Although attendance at the Calgary Stampede hit a 22-year low in 2016, the numbers are expected to pick up in 2017. The recently opened National Music Centre and the Calgary Film Centre should also help boost traffic by 2.5 per cent next year.

Edmonton

The continued weakness of the energy sector continues to affect the area’s overnight visits, in particular, that of business travellers. Overnight visits to the city are projected to decline 1.7 per cent in 2016 but strong growth from the U.S. and overseas markets should bring the city an increase of 2 per cent for 2017.

Vancouver

This year, Vancouver should see a 6 per cent increase in tourism activity with an additional 4.1 per cent growth projected for the coming year. In part, such high-profile events such as the NCAA basketball tournament and the Canada Sevens rugby tournament will help keep the focus on the city.

For more information, visit www.conferenceboard.ca. 

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