Travel and Tourism in Canada to 2020
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Americans flocked to Canada for tourism in 2015, reaping the benefits of the weaker Canadian dollar, and this trend is expected to continue in 2016. International arrivals increased by 6.3% in 2015. As Canada is an oil exporting nation, the fall in oil prices globally is hurting its economy and adversely impacted domestic and outbound tourism in 2015.
Scope
• Canada’s inbound tourism market registered strong growth in 2015 while outbound tourism contracted. Inbound trips increased by 6.3% in 2015, totaling 18.2 million, while international departures declined by -2.5%. This can be attributed to a weak Canadian dollar, which made travel to Canada cheaper for Americans. At the same time, international travel for Canadians became costlier, which adversely impacted outbound travel. This effect is largely seen in the US, which is the biggest source and destination market for Canada. International arrivals from the US increased by 7% in 2015, while departures to the US fell by -3%. With outbound becoming costlier, domestic tourism is expected to benefit over the coming years. Domestic trips are projected to grow at a CAGR of 4.3% over 2015–2020 to reach 142.8 million by 2020. International departures are expected to grow from 32.6 million in 2015 to 38.5 million in 2020, while inbound trips are expected to grow at an average annual rate of 4.7% reaching 23 million by 2020. Canada’s relaxed visa rules in recent years will continue to support the growth
• The LCC airlines market in Canada is expanding with new players entering. Four new airlines — NewLeaf Travel, WOW Air, Jetlines, and Jet Naked — are expected to commence operations in 2016. Of these, three airlines plan to serve underserved routes. Low fuel prices will help and, with the weak Canadian dollar, many people are likely to holiday within the country and may prefer low-priced domestic trips
• In 2015, Vancouver became the top hotel market in Canada, followed by Toronto. The city is leading in terms of occupancy rates and growth in REVPAR. Furthermore, its growing appeal as a conference and convention spot, and rising disposable incomes in British Columbia are driving overnight visits to the city. The weak Canadian dollar also helped Vancouver attract more American tourists
Reasons to Buy
Make strategic business decisions using historic and forecast market data related to Canada’s Travel & Tourism sector
Understand the demand-side dynamics within the industry to identify key market trends and growth opportunities
Direct promotional efforts to the most promising markets by identifying the key source and destination countries
Westjet
United Continental Holdings
American Airlines
Air France KLM
Wyndham Worldwide Corporation
Choice Hotels International Inc.
Best Western International
Marriott International Inc.
Hilton Worldwide
IHG (InterContinental Hotels Group)
Star
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