Destination Canada, a tourism organization wholly owned by the Canadian government, released a Canadian tourism report. The report found that at a macro level, five key drivers will affect not only travel and tourism but Canadian society for both the short and long term.
In 2022, the report detailed five areas in which it anticipates evolution as a result of recent trends:
- Destination Canada anticipates more domestic travel due to continued international travel barriers. Residential tourism and long-term stays will increase as locals explore their cities or regions differently;
- Destination Canada anticipates proportionately more leisure travel than business travel, as remote work options soar in popularity;
- Destination Canada anticipates more digital use as faster connectivity and smart data enable people to see trends, make predictions and enhance experiences;
- Destination Canada anticipates more competition as governments invest in tourism recovery. International tourist volume will be limited, creating a short-term, highly competitive landscape;
- Destination Canada anticipates more change, uncertainty and flexibility as companies seek to proactively adapt to the new reality rather than wait for rebounds to pre-Covid levels in the industry.
Among trends driving the outcomes, the report found COVID-19 provided uncertainty almost everywhere, ranging from differing entry rules at global borders, refund policies, as well as constantly changing infection rates and restrictions. The group found there was an enormous impact from Covid on the Canadian tourism sector.
In 2020, almost 900,000 jobs were lost in Canada at the height of the crisis, representing 43% of all tourism employment. In 2021, tourism employment over the first 10 months of the year remained 21% below pre-pandemic 2019 levels – a loss of 360,000 jobs, while overall employment in the Canadian economy had recovered to pre-pandemic levels.
As more people get vaccinated, travel spending in North America increased at an accelerated rate since the beginning of 2021, evident across multiple income tiers. At the same time, costs are rising. Prices for airlines, hotel stays, food and car rentals soared over past several months, the report found, as part of a larger inflation trend amid supply chain issues and an economic reopening.
