Canada’s Tourism Industry: Industrial Outlook, Winter 2007

Profits in Canada’s tourism industry are expected to improve in 2007, reaching $950 million, as companies seek ways to reduce costs and improve profitability. Profits in accommodation industry will improve the most, as the industry returns to profitability after two consecutive years of losses.

After two years of robust growth, growth in real spending on domestic travel will decelerate this year but stay healthy compared with historical norms. Meanwhile, real foreign spending will struggle with sluggish U.S. demand and the maturation of traditional markets.

Overall tourism profits will fall again in 2008, when travellers entering or re-entering the United States by land or sea will need passports. But profits are forecast to improve steadily thereafter, reaching $1.2 billion by 2011.