Canadian travel industry continues to show strength

The Canadian dollar isn't the only thing that's been going strong up North. Tourism has been on the rebound for the last couple of years, and the latest figures are especially encouraging.

Total tourism spending increased 5.6% for a total of $12.9 billion in the first quarter of 2007 compared to the same period in 2006. This growth was driven by an impressive 7.4% increase in domestic spending. In a July report issued by the Canadian Conference Board, which tracks the latest Canadian Travel Intentions Survey, it notes that respondents lately have felt they have more time and money to travel. The trend is being seen on the other side of the border as well — as reported by the U.S., Canadian land visits to the U.S. grew three percent from May 2006 to May 2007.

According to Statistics Canada, domestic tourism spending has grown for seven straight quarters, reaching back to the third quarter of 2004. The picture is a little less rosy when it comes to international visitors. Overall, non-resident visitor spending dropped 1.1 percent during the first quarter of 2007 compared to the same period in 2006. But there's good news in there as well. While U.S. visits to Canada decreased from May 2006 to May 2007, there were more visitors from many other countries. During the same period, India logged the biggest gain — more than 21 percent — closely followed by Mexico at 19.9 percent. Australians, South Koreans and Chinese visitors have been visiting in increasing numbers as well.

Concerns remain over fuel prices and how U.S. dollar weakness might continue to affect visits from Canada's closest neighbor. Perhaps slightly more worrying to the motor coach industry was that fewer U.S. residents arrived in Canada by bus in 2006 than in 2005. U.S. car and airplane arrivals decreased as well — in fact, the only U.S.-Canadian border-crossing transportation growth was aboard trains.

Keeping up the good work
Why else, besides available money, might people be traveling around Canada more? The influential Anholt Nation Brands Index recently reported that Canada is the world's friendliest country, besting even Australia.

For the latest travel statistics, visit Statistics Canada at www.statcan.ca.

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