Published twice a year, the Canadian Industrial Outlook Service includes detailed, five-year forecasts in 10 key Canadian industry sectors. Outlooks for several financial and economic variables—prices, production, revenues and expenditures, profits, gross domestic product, and employment—are generated, based on forecasts of key domestic and international factors such as interest rates, exchange rates and tax policy.
Document Highlight
In 2003, the global tourism industry endured a war with Iraq and a battle against Severe Acute Respiratory Syndrome (SARS). The tourism industry in Canada has been severely damaged by these two events, as well as by the economic slump in the world economy, most notably the United States. The SARS outbreak has had a devastating impact on the entire industry in Canada, as international visitors significantly reduced their travel to Canada. GDP in the tourism industry declined by an estimated 4.4 per cent in 2003 with the air transportation and accommodation sectors bearing the brunt of the decline. Businesses in the tourism industry have responded to the downturn in demand by reducing both labour and material costs. However, these measures have not been enough to offset the plunge in revenues and, consequently, the industry was projected to lose more than $2 billion in 2003. The outlook is somewhat better in 2004 as spending on tourism in Canada by both foreign visitors and domestic residents is expected to improve in line with better economic prospects in the Canadian and world economies. GDP is forecast to increase by 3 per cent. However, the improvement in overall demand will not be enough to put the industry back into the black.
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