Inflation, geopolitics weighing on tourism industry
BNN Bloomberg
Canada’s tourism industry has not yet recovered after the COVID-19 pandemic, according to one economist, as the sector continues to be weighed down by inflation and geopolitics.
Claire Fan, an economist at RBC Economics, said in a report Tuesday that Canadian residents are taking more trips than before the pandemic, but there is “still a gap” regarding the number of people visiting Canada. She also noted that improving economic conditions could help to spur a rebound in tourism later in 2024 and into 2025.
The report said that rising inflation over the past few years has contributed to the industry's poor performance.
“Overall, the price of spending on tourism in Canada (hotels, restaurants, airfares, etc.) was 19 per cent above pre-pandemic 2019 levels in 2023. And despite a loftier price tag for many activities, tourists are getting less for their travel dollars,” the report said.
