Canadian Industrial Outlook: Accommodation—Winter 2018
The Conference Board of Canada, 19 pages
April 10, 2018
This report examines the short-and medium-term economic and profitability outlook for Canada’s Accommodation Industry.
- Macroeconomic Supports—Accommodation services providers are still enjoying support on the macroeconomic side—low oil prices that continue to stimulate tourism and a favourable currency situation—although a gradual return to historical norms over the forecast will soften the demand-side tailwinds that are buoying the industry.
- International Visitors—Rising demand for Canadian accommodations by American and overseas guests will power growth in Canada’s accommodation industry. Over the medium term, growth in visitors from Asia and Oceania will average 7.0 per cent per year, and the number of guests arriving from Central and South America will rise at an average rate of 9.9 per cent.
- Short-Term Rental Competition—Short-term rentals through providers such as Airbnb now account for 18 per cent of the total accommodation inventory in Canada. More than a third of these hosts provide lodging for at least 90 days per year, with the growth in unit supply increasing by nearly 150 per cent over the last two years in several urban markets.