COVID-19 has had a profound effect on Canada’s tourism industry. Chinese tourists alone spend around $1.54bn annually, which will be significantly reduced in 2020. However, the gradual reopening of domestic travel will spark a much-needed push to the country’s essential travel and tourism industry, says GlobalData, a leading data and analytics company.
Ravi Sharma, Banking and Payments Lead Analyst at GlobalData, comments: “This is a key reason why GlobalData has altered its total payment transactions forecast in the country. The company now expects only very slight growth of 1.1% in 2020, largely led by a spike in e-commerce sale. This is compared to 5.9% growth previously expected in 2020. GlobalData expects growth of up to 3.9% in 2023. This is lower compared to pre-COVID levels, which reached 4.6%.”
The overall decline in consumer spending will partially be offset by a rise in online spending as wary consumers stay home and use online channels for purchases. Cash is likely to take a backseat in the short term and rises in contactless payments are expected. Usage of contactless payments will also be boosted by the rise in payment limit.
Sharma continues: “GlobalData expects the Canadian m-commerce market to grow at an annual rate of 26.7% in 2020. The shift in consumer buying behavior is likely to support this trend over the next few years. Mobile wallets, such as Google Pay and Apple Pay are likely to do well going forward, as a result of this pandemic.”