Canadian Industrial Outlook: Accommodation—Winter 2017
The Conference Board of Canada, 12 pages
March 7, 2017
This report examines the short-and medium-term economic and profitability outlook for Canada’s Accommodation Industry.
- Consumer Spending—High debt levels and sluggish wage growth will weigh on household budgets and limit increases in consumer spending on domestic tourism, potentially affecting demand for accommodation.
- Exchange Rate—The weak loonie continues to make Canada an affordable destination for travellers from abroad. With the dollar expected to remain below US$0.80 for the foreseeable future, the accommodation industry will continue to benefit from healthy growth in foreign demand in the coming years.
- Rising Competition—Short-term rentals are drawing bookings away from and competing directly with some establishments. This added competition affects pricing power and presents challenges, particularly for establishments offering limited accommodation services such as budget hotels and motels.