Canadian Industrial Outlook: Accommodation—December 2019

Accommodation spending—Following an already strong year in 2018, 2019 will be another banner year for the industry with healthy growth stemming from both domestic and international markets. However, households are increasingly cautious with respect to their spending and we expect travel budgets to tighten from next year on.

Competition from private short-term accommodation—The popularity of private short-term rentals has surged in recent years, dominated by listings offered through Airbnb. After several years of double-digit increases, this segment now accounts for the bulk of industry revenue growth.

Overseas markets—Overseas travellers are key to the health of the accommodation industry. Compared with U.S. tourists, they tend to stay longer in Canada and spend more. In particular, the number of tourists from China took off in recent years and outpaced all other markets, with an estimated one in five dollars spent by overseas tourists now originating from China.