QUARTERLY TOURISM SNAPSHOT An ongoing monitor of the performance

of Canada’s tourism sector

Q4 2022
Key takeaways
1
# 2
Tourism spend continues to rise
Overall, Q4 tourism spend has grown year-on-year to 96% of 2019
levels. Domestic spend continues to lead the recovery closing the
year at 99% of pre-pandemic levels. Tourism exports still lag but
showed strong growth through 2022, closing the year at 88%
of pre-pandemic levels (from 66% in Q2 and 79% in Q3).
# # 3
Labour shortage persists Sentiment to travel is improving
Tourism’s active labour force has gradually increased since Q3; Canadians sentiment towards welcoming visitors continues to rise,
however, it remained below pre-pandemic levels. Notably, the with 70% welcoming of international travellers. Among travellers
unemployment rate for tourism is at the national average for the from the US, Canada is now a top-3 desired foreign destination.
Canadian economy. At the end of Q4 2022, 138,000 jobs in
tourism remained unfilled, which equates to 6.6% of tourism
jobs (an improvement from 8.5% in Q3). Despite these positive
signs, labour shortages in tourism continue.

State of the Industry

Tourism Spend
Source: Statistics Canada, National Tourism Indicators, Q4 2022 

In Q4 2022, tourism spend progressed to 96% of 2019 Total tourism expenditures in Q4 of each year on Canadian goods and services 2019 qS
levels, up from 93% in Q3 2022. Domestic tourism demand
in Q4 2022 was almost on par with pre-pandemic levels.
Tourism exports continued to steadily improve, reaching Pre-pandemic $5.7B $5.0B 2022 Q2 2022 Q3 2022 Q4
88% of 2019 levels in Q4 2022, but still lag behind baseline
domestic demand. (Q4 2019)

$0.35B
$2.2B
103% 99% 99%
Domestic

International $16.3B $9.6B $12.6B $16.1B

66% 79% 88%
Overall
Total $22.0B $9.93B $14.8B $21.1B 92% 93% 96%
‘19 q4 ‘20 Q4 ‘21 Q4 ‘22 Q4
Tourism Activity
Source: Statistics Canada, Canadian Tourism Activity Tracker (July 2022) Table 24-10-0049-01 (released March 7, 2023) 

In October 2022, international tourism activity in Canada A composite index of air movement, land movement, spending and other sources
spiked with the Government of Canada’s removal of border
measures including the requirements for travellers to Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 Wave 6 Wave 7
Alpha Beta Gamma Delta Omicron Omicron Omicron
provide proof of vaccination, submit public health BA.2 BA.4 &
information through the ArriveCAN app, undergo pre- -4%
BA.5
0
or on-arrival testing, and COVID-19-related quarantine
or isolation. Pre-pandemic -2%
baseline -5.7%
-8.1%
(Monthly 2019) -10.5%
Domestic International

Key milestones for entry to Canada 50

1 Border closed to all non-essential foreign travel

-76%
2 Announcement of border reopening to US and
international travellers
3 Border open to US leisure travellers -81%

4 Border open to all other international leisure travellers 1 2 3 4 5 6 100

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
5 Removal of pre-entry testing for fully vaccinated travellers
6 Removal of all remaining COVID-related border restrictions ‘19 ‘20 ‘21 ‘22

Tourism Employment
Source: Statistics Canada, Labour Force Survey, December 2022, via Tourism HR Canada
(data extracted April 5, 2023), Statistics Canada tables 14-10-0328-01 and 14-10-0326-01

Unemployment Rate Labour Force Active in the Canadian Economy

The unemployment rate for the Canadian economy was at 4.4% in While the Canadian labour force expanded 2.7% over its pre-pandemic level by Job Vacancy
December 2022. December unemployment in tourism stood also at 4.4% December 2022, the labour force active in the tourism sector remained 7.9% The tourism sector steadily added
and was 0.7 percentage points lower than it was in December 2021.  below its pre-pandemic level.   back over half a million jobs in
2021. The ability to fill these jobs
hasn’t kept pace.  

6.6%
Index 100 = Monthly 2019 Labour Force Level
102.7
30% 105

20
95 unfilled
92.1
At the end of Q4 2022, 138,000
4.4% 85 jobs in tourism remained
10 unfilled, which equates to 6.6%
4.4%
75 of tourism jobs.

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J JAS O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J JAS O N D
Canadian Tourism
‘20 ‘21 ‘22 ‘20 ‘21 ‘22 economy industry

Active Business
Source: Statistics Canada, Experimental estimates of business openings and closures for Canada
(table 33-10-0270-01)  (data released March 28, 2023)

As a result of the pandemic, the tourism industry suffered the most significant declines in active businesses. Tourism has Change in the number of businesses active in tourism industries
not kept pace with the recovery seen by Canadian businesses overall, and as of December 2022 the number of active 2022-December vs 2020-January
tourism businesses remained 3.1% below pre-pandemic levels. Travel services and passenger transportation services
remain the most fragile tourism sub sectors.
Monthly active businesses in Canada -21% Travel services
Index 100 = January 2020 101.8 Bus transportation, taxi, limousine services
-16% & vehicle rental
105
-11% Rail, scenic & sightseeing transportation
95 Air transportation
87.4 -6%
96.9 -3% Recreation & entertainment
85 Tourism industry
77.3 Canadian businesses
bottom was deeper -3% Water transportation
75 than anticipated. Tourism industries -2% Food & beverage services
Average Tourism
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Industries -1% Accommodation

‘20 ‘21 ‘22 -3.1% +2% Canadian businesses

 QUARTERLY TOURISM SNAPSHOT Q4 2022
Tourism Performance
Travel Confidence and Intent
Source:  Destination Canada COVID-19 Resident Sentiment, December 2022

Domestic: Level of Welcome

Level of welcome towards visitors from other countries

82 68 70
increased by +5 points from September to December.  % Welcome towards % Welcome towards % Welcome towards
Levels towards visitors from other parts of Canada visitors from other travellers from the travellers from
(+1 point) and the US (-2 points) remained more stable.  parts of Canada United States other countries

Review external document

Source:  Destination Analysts. The State of the American Traveller, December 15-24, 2022

US: Travel Confidence and Intent

Travel Confidence Most Desired Foreign Likely to Take a Trip Likely Month of Travel Likely Province
Destinations (next 12 mos.) to Canada (next 9 mos.) to Visit

58
Safely travel
%
1 Italy
2 Mexico 15%
19% YES

43 %
2022/2023
Sept
0%
Oct
0%
Nov
0%
Dec
5%
YT

4%
NT
1%
NU
NL
3 Canada 14%
Jan Feb Mar Apr 7%
BC
Travel intent spiked in October 2% 3% 4% 6% 24 % AB PE
(54%), following the lifting of 4 United Kingdom 14% NO May Jun Jul Aug 11% SK MB QC 7%
5% 23%

57
remaining border related 5 % ON NS
8% 15% 15% 10% 34% NB 11%
restrictions, but leveled out in
the 40% range in Q4.
5 France 10% % Sept Oct Nov Dec
5%
As of December 2022 7%

Travel Considerations Source: DC Calculations based on Destination Insights with Google, data extracted on January 7, 2023

Web Search Trends for Air & Accommodation to Canada Searches for Canada continue to
surpass 2019 levels across
From United States From Europe (incl. UK, France & Germany) From Asia-Pacific (incl. Australia, Japan & South Korea) markets since the beginning of
Index=100% (Month max. search in 2019) spring 2022. Demand has
returned to pre-pandemic
seasonality with notable
decreases during the shoulder
seasons. By the end of
December, there was a
considerable hike in searches,
which aligns with winter
campaign efforts and is
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D indicative of an increase in travel
demand to Canada for 2023.
2019 72% 2020 20% 2021 49% 2022 92% 2019 74% 2020 29% 2021 73% 2022 132% 2019 75% 2020 17% 2021 41% 2022 114%

Travel Connectivity & Bookings

Air Connectivity
Source: International Air Transport Association, SRS Analyzer (data extracted April 13, 2023) 

Global Domestic Flight Seat Capacity Global Int’l Seat Capacity

Pre-pandemic baseline Pre-pandemic baseline

(2019 Q4)
91% (2019 Q4) 88%
85% 86%
70% 77%
In Q4 2022, Canadian domestic air
68% connectivity is at 86% of 2019 levels. 54% In Q4 2022, Canadian international
Globally, the recovery pace of 50% air connectivity is set to exceed the
domestic routes in other countries
global international recovery pace
35% is on average 5% points ahead 26% for a third consecutive quarter,
domestic route recovery in Canada. 17% standing at 88% of 2019 levels.

2020 (Q4) 2021 (Q4) 2022 (Q4) 2020 (Q4) 2021 (Q4) 2022 (Q4)

Hotel Occupancy Source: STR, date extracted on March 10, 2023

Int’l Business Events Booking Pace Source: Destination Canada’s National Business Events
Pace Report, February 28, 2023 dataset (preliminary)

On average, occupancy rates in Q4 2022 International business events scheduled International business events delegates/
Average occupancy at Urban properties is
marginally exceeded pre-pandemic levels. still slightly behind pre-pandemic levels. in Canada for 2022 arrivals expected for 2022

Nearly
Occupancy Rate Q4 Data
Total Canada
+1%
Urban
-1%
Small Metro/Town

+4%
Resort

+1%
430 Nearly

60% 61% 65% 64% 49% 53% 50% 51% 271,000

2019 2022 2019 2022 2019 2022 2019 2022

Arrivals Sources: Statistics Canada, Tables 24-10-0053-01, 24-10-0055-01

58
Monthly Arrivals of International International Arrivals as a % Year to date arrivals, border counts
US (non-US) comparison to 2019
Tourists in Canada Year to date December 2022
2,500 100%
Mode Total
1 Announcement of border reopening 4 Removal of pre-entry testing for fully
to US and international travellers vaccinated travellers 3,386,357 3,282,816 6,669,173
Arrivals (Thousands)

Annual 2022 int’l 66% 56% 61%

2 Border open to US leisure travellers 5 Removal of all remaining
arrivals stood at 58% vs. 2019 vs. 2019 vs. 2019
COVID-related border restrictions 802k
3 Border open to all other international of 2019 levels, with
50% 5,349,898 411,799 5,761,697
leisure travellers over 12.8 million
59% 40% 57%
annual visitors. This vs. 2019 vs. 2019 vs. 2019
included 9.1 million
356k visitors from the US 352,217 36,004 388,221
(61% of 2019) and
41% 14% 35%
vs. 2019 vs. 2019 vs. 2019
0 1 2 3 4 5 0% 3.7 million visitors
from overseas 9,088,472 3,730,619 12,819,091
J F M A M J J A S O N D J F M A M J J A S O N D
(52% of 2019). Total 61% 52% 58%
2021 ‘22 vs. 2019 vs. 2019 vs. 2019