This report examines the short-and medium-term economic and profitability outlook for Canada’s accommodation industry.
Document Highlights
Canadian Consumers—2018 was a record year for the accommodation industry, thanks to robust growth in domestic tourism spending. However, this uptick will be short-lived with growth in consumer spending weakening significantly in recent months and with households’ travel budgets about to feel the pinch as well.
International Tourism—Several factors are weighing on growth in foreign tourism in Canada. The boost from a lower currency is now gone, the global economy is slowing, and the trade and diplomatic tensions between Canada and China could weigh on Chinese travellers’ intentions to visit Canada.
Labour Shortage Now a Reality—Robust industry growth and a historically low unemployment rate are making it difficult for hoteliers to find the workers they need, especially for non-routine manual occupations. Labour shortages are unlikely to subside in the short term due to population aging and weak growth in the labour force.
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