Canada’s tourism sector seems to be slowing down again, following a brisk recovery when COVID-19 lockdowns lifted, a new report found.
Over the past three years, the tourism industry had been clawing its way back to pre-pandemic numbers, however, a new report by TD bank found the pace of recovery started to slow this year.
The report, titled ‘A Slow Road to Recovery for Canadian Tourism Spending,’ says the decline is due to financial challenges in Canada such as higher interest rates, a slowing job market and broader tourism slowdowns seen both domestically and internationally.
This slowdown means a full recovery will take time, as tourism activity and travellers’ spending are not expected to reach former levels until 2025, stated the report published on Thursday by TD’s economists Marc Ercolao and Rishi Sondhi.
While the number of domestic travellers was not available at the time the report was published, economists say the data available shows domestic tourism activity had a milder decline during the beginning of the pandemic, and has since recovered faster than international tourism.
From the beginning of this year until May, international travellers to Canada increased from 2.11 million to 2.25 million. This is similar to the 2011-15 average; however, this number is still 20 per cent lower than the pre-pandemic peak, read the report.
While domestic tourism has seen a faster recovery post-pandemic, the lag of international tourism presents a key weakness in the path to recovery.
According to the report, in the first five months of 2023, the number of Chinese visitors to Canada was 80 per cent below the level over the same period in 2019. This notable difference reflects, in part, the tensions between the two countries, as well as travel restrictions imposed on group tours.
However, there is a positive momentum with visitors from India, which have doubled in number compared to pre-pandemic travel.
The report also highlights different tourism recovery patterns across provinces, with the Atlantic region slightly outperforming the rest of the nation.
Hundreds of people walk near the lighthouse in Peggy's Cove, N.S., Tuesday, July 4, 2023. (Darren Calabrese/THE CANADIAN PRESS)Nova Scotia leads the charts as the only province surpassing pre-pandemic international tourism numbers, seeing a 15 per cent increase. Quebec comes as a close second as its tourism recovery is “moving at a faster pace than the rest of Canada,” states the report.
Tourism in Western Canada is ahead of other parts of the country as well, according to the report, with Alberta and British Columbia reaching 11 per cent and 13 per cent below pre-pandemic levels respectively. The challenges for both provinces include labour shortages, which could impede the ability to meet the demands of peak tourism season, states the report.
Saskatchewan, on the other hand, has lagged when it comes to international travel. Visits to the Prairie province are 40 per cent below the 2019 average. The report says this decline might be in part due to same-day tourists, whose numbers have fallen at less than 50 per cent pre-pandemic levels.
“Saskatchewan has also seen some domestic and international flight routes halted by major airlines,” reads the report.
Another province that’s lagging in international tourism is Ontario, which is down 24 per cent from pre-pandemic levels. According to the report, Ontario’s challenges are structural, including "staffing issues."
The report states inflation-adjusted spending has stayed relatively steady for tourists, a positive for those in the industry.
In the first quarter of 2023, domestic tourism spending reached approximately 90 per cent of its pre-pandemic levels, compared to 80 per cent for international visitors.
In the second quarter, expenditures were similar; however, this means the numbers were 13 per cent below where they were in the same period before the pandemic hit.
The report predicts spending will not reach pre-pandemic levels until 2025, due to several economical challenges.
For Canadians, the job market is unstable, and it’s expected to “lose a considerable amount of steam” by the second half of this year, TD's economists forecast.
At the same time, higher interest rates announced by the Bank of Canada could mean Canadians are focusing more on meeting debt payments than spending it on domestic tourism.
Finally, the economic trends in the U.S. could also affect Canada’s tourism market.
“On the plus side, the Canadian dollar should remain relatively low through next year, providing a small offset to these other headwinds,” read the report.
Also on the plus side, those behind the report say they believe Canada's tourism recovery is "likely to continue to make some gradual headway" thanks to what they call "ongoing pent-up demand."
And, they wrote, the slower demand growth may allow the industry the time it needs to fill its staffing gaps.
Canadians will soon receive a temporary tax break on several items, along with a one-time $250 rebate, Prime Minister Justin Trudeau announced Thursday.
A mother shares with CTVNews.ca her family's health scare as medical experts say cases of the disease and other respiratory illnesses have surged, filling up emergency departments nationwide.
U.S. president-elect Donald Trump on Thursday named Pam Bondi, the former attorney general of Florida, to be U.S. attorney general just hours after his other choice, Matt Gaetz, withdrew his name from consideration.
A rare one-of-a-kind pure gold coin from the Royal Canadian Mint has sold for more than $1.5 million. The 99.99 per cent pure gold coin, named 'The Dance Screen (The Scream Too),' weighs a whopping 10 kilograms and surpassed the previous record for a coin offered at an auction in Canada.
A popular series of Murphy beds that had been sold online is under a recall in Canada and the U.S. after several reported instances of the furniture detaching from walls.
In his column for CTVNews.ca, Washington political analyst Eric Ham argues U.S. president-elect Donald Trump's controversial cabinet nominees are useful pawns meant to be sacrificed for a more bountiful reward down the line.
CTV film critic Richard Crouse says 'Wicked' is a bold, brassy re-imagination of the beloved hit musical that brews up its own cinematic vibe.
Russian President Vladimir Putin announced Thursday that Moscow has tested a new intermediate-range missile in a strike on Ukraine, and he warned that it could use the weapon against countries that have allowed Kyiv to use their missiles to strike Russia.
Canadians won't have to pay GST on a selection of items this holiday season, the prime minister vowed on Thursday.
An investigation into how the Canadian Coast Guard responded to a Nova Scotia vessel in distress two years ago raises questions about why one fisherman died after a towing operation went awry.
Calgary police are seeking information in relation to a Tuesday fire in Hillhurst they believe was deliberately set and notes left in the area demanding Bitcoin.
Municipal officials are considering an end to water fluoridation on the island of Montreal in a move spurred by a petition from a resident who claims he has the support of Robert F. Kennedy Jr.
Approximately 85,000 new passports are being held back by Service Canada, which stopped mailing them out a week before the nationwide Canada Post strike.
Nova Scotia’s top three political party leaders took part in CTV Atlantic’s roundtable discussion on Thursday, where they sparred over affordability, housing, health care, and campaign promises.
Humans weren’t the only ones who struggled through the bomb cyclone that formed off the B.C. coast this week, bringing intense winds and choppy seas.
An Alabama inmate convicted in the 1994 killing of a female hitchhiker cursed at the prison warden and made obscene gestures with his hands shortly before he was put to death Thursday evening in the nation's third execution using nitrogen gas.
In his column for CTVNews.ca, Washington political analyst Eric Ham argues U.S. president-elect Donald Trump's controversial cabinet nominees are useful pawns meant to be sacrificed for a more bountiful reward down the line.
North Korean leader Kim Jong Un said his past negotiations with the United States only confirmed Washington’s "unchangeable" hostility toward Pyongyang and described his nuclear buildup as the only way to counter external threats, state media said Friday.
Mexico's president acknowledged Thursday that Canada is concerned about reports of a Chinese company's plan to build an auto plant in Mexico, but she said it does not currently exist.
Brazil's federal police said Thursday they indicted former President Jair Bolsonaro and 36 other people on charges of attempting a coup to keep him in office after his electoral defeat in the 2022 elections.
A recent lawsuit alleges Linda McMahon, who U.S. President-elect Donald Trump tapped to lead the Department of Education, knowingly enabled the sexual exploitation of children by a World Wrestling Entertainment (WWE) employee as early as the 1980s — allegations she denies.
Canada's consul general in New York doubled-down Thursday on his past claim that he exerted no influence on the decision of Global Affairs Canada to buy a $9 million condo in Manhattan.
Prime Minister Justin Trudeau said Canada will 'abide' by an International Criminal Court (ICC) arrest warrant for Israeli Prime Minister Benjamin Netanyahu.
Canadians will soon receive a temporary tax break on several items, along with a one-time $250 rebate, Prime Minister Justin Trudeau announced Thursday.
A popular series of Murphy beds that had been sold online is under a recall in Canada and the U.S. after several reported instances of the furniture detaching from walls.
A mother shares with CTVNews.ca her family's health scare as medical experts say cases of the disease and other respiratory illnesses have surged, filling up emergency departments nationwide.
What kind of exercise is best during chilly weather? How can people safely and enjoyably participate in physical activity outdoors when it’s cold out?
The Canadian Space Agency (CSA) is inviting Canadians to choose the name of the first Canadian Lunar Rover.
Astronomers have captured the first close-up image of a star beyond our galaxy, taken during a dramatic moment near the end of the star’s life. In it, the 'behemoth' star appears to puff out gas and dust, a critical final step before exploding in a supernova.
A rare kind of fruit fly has been caught by U.S. Customs and Border Protection (CBP) agriculture specialists at Detroit Metro Airport.
CTV film critic Richard Crouse says 'Wicked' is a bold, brassy re-imagination of the beloved hit musical that brews up its own cinematic vibe.
Pamela Hayden, the longtime voice actor behind Milhouse Van Houten — Bart Simpson's very uncool friend — is stepping away after 35 years of whining.
Everybody who lived in Edmonton in the 1980s knew it was famous for two things: the mall and the Oilers.
FunGuyz, which calls itself the biggest magic mushroom dispensary in Canada, says it's shutting down all 30 of its Ontario locations.
A temporary pause on charging the federal sales tax on many items has retailers excited, even though they say preparing for the relief will mean a lot of extra work in a short period of time.
Irving Tissue said it needs to expand in Macon because the mill is currently selling all the bath tissue and paper towels it can make
The world's tallest woman and the world’s shortest woman have met for afternoon tea in London to celebrate Guinness World Records Day.
Sandra Kroek and her grandson Remington spent 200 hours painting a massive Star Wars mural together.
CTVNews.ca wants to hear from digital nomads who have taken up location-independent jobs and can work from anywhere with an internet connection.
Alex Ovechkin has a broken left fibula and is expected to be out four to six weeks, an injury that pauses the Washington Capitals superstar captain’s pursuit of Wayne Gretzky’s NHL career goals record.
Sea Bears centre Chad Posthumus has died at age 33.
Shohei Ohtani won his third Most Valuable Player Award and first in the National League, and Aaron Judge earned his second American League honour on Thursday.
Northvolt AB has filed for bankruptcy protection in the United States, but said the move will not jeopardize the manufacturer's planned electric vehicle battery plant in Quebec — though hundreds of millions of taxpayer dollars invested in the parent company could be lost.
Canadian drivers are regularly in a hurry to get to their destination and a majority are willing to take unnecessary risks on the road, according to the results of a new survey.
A man from B.C.’s Lower Mainland who was scammed while selling his Porsche Cayenne online is sharing his cautionary tale – while calling for increased protections from the government.
After driving near the water that winter day, Brian Lavery thought he saw a dog splashing in the waves – then realized it was way too cold for that.
Toronto radio and podcast host Jax Irwin has recently gone viral for videos of her cute -- and at times confusing -- phone conversations.
Two young women from New Brunswick have won one of the most prestigious and sought-after academic honours in the world.
Stretching 3,000 kilometres from the tip of New Zealand to its southernmost point, with just a bicycle for transport and a tent to call home, bikepacking event Tour Aotearoa is not for the faint of heart.
When he first moved to his urban neighbourhood, Barry Devonald was surprised to be welcomed by a whole flock of new neighbours.
When George Arcioni began renovating his kitchen last summer, he didn’t expect to find a stack of letters hidden in the wall behind his oven.
A Nova Scotia couple fulfilled their wildest dreams Thursday night when they got engaged at Taylor Swift’s Eras Tour in Toronto.
Some Calgary residents caught what appeared to be a meteor streaking across the sky early on Wednesday morning.
Four years ago, Phill Hebb started up 'Phil’s Unique Birdhouses' and since then, they’ve made their way all across Canada and into the United States.
For nearly a year, the Vancouver Police Department has failed to fulfill two freedom of information requests seeking records from Chief Adam Palmer and other high-ranking officials – a situation transparency advocates call highly concerning, and potentially illegal.
All 44 members of the B.C. Conservative caucus have been appointed to leadership positions – whether as shadow cabinet members or Opposition house leader.
The coach of a soccer team in the Vancouver Youth Soccer Association claims a complaint about racism directed at 13-year-old players on his team went unaddressed for more than a year.
A man has been rushed to the hospital following a shooting in North York Thursday night.
A 39-year-old woman who was critically injured after she and her family were struck by the driver of a vehicle in Etobicoke last month has died in hospital, Toronto police say.
Taylor Swift is officially back in Toronto for round two. The popstar princess's motorcade was seen driving along the Gardiner Expressway on Thursday afternoon, making its way to the downtown core ahead of night four of ‘The Eras Tour’ at the Rogers Centre.
The Calgary Fire Department responded to an explosion and fire at a six-plex in the city's southeast on Thursday afternoon.
It's an announcement meant to appeal to cash-strapped Canadians—a tax break impacting everything from groceries to children's clothes to diapers—and it will last for two months.
A Calgary family is warning others and wants to see more accountability for pet owners after their dog was attacked and seriously injured in the northwest community of Royal Oak.
Santa Claus visits Kanata, Kingston and Arnprior, Christmas market season gets underway and the Vanier Cup is at Queen’s University. CTVNewsOttawa.ca looks at things to do in Ottawa and eastern Ontario this weekend.
The student union at the University of Ottawa says it will consider pulling its participation from the U-Pass, which provides discounted transit fares for students, if the city goes forward with hiking student transit fees and violating the program’s contract.
A former Ottawa police officer returned to the witness stand on Monday and provided further details of the moments before the violent and deadly arrest of Abdirahman Abdi on the fourth day of a coroner's inquest into the circumstances of his death.
Lachine Mayor and member of Projet Montreal Maja Vodanovic said the city will not reopen the debate on water fluoridation.
The lobby of Concordia University’s Hall Building was flooded with pro-Palestinian protesters Thursday as others gathered and chanted outside the campus as part of Quebec-wide solidarity strikes.
There was a mixed reaction to the Quebec government's fall fiscal update on Thursday as the province announced billions of dollars in new spending.
The Alberta government is making changes to auto insurance, including rate hikes and switching to a predominantly no-fault claims model.
Two city councillors, one sitting and one former, will be running for mayor in 2025.
It's an announcement meant to appeal to cash-strapped Canadians—a tax break impacting everything from groceries to children's clothes to diapers—and it will last for two months.
Nova Scotia’s top three political party leaders took part in CTV Atlantic’s roundtable discussion on Thursday, where they sparred over affordability, housing, health care, and campaign promises.
Canadians will soon receive a temporary tax break on several items, along with a one-time $250 rebate, Prime Minister Justin Trudeau announced Thursday.
A high school on Prince Edward Island is removing pictures of its late students from a memorial wall – a decision that has upset one mother whose daughter attended the school.
Sio Silica is planning to try again with a controversial mining project in the same spot using the same method that the province rejected less than a year ago, but this time with more community engagement.
The City of Winnipeg is projecting an operating shortfall in 2024, and the plan to cover it off would completely drain the city's rainy day fund.
Manitoba RCMP have issued a Canada-wide arrest warrant for the semi-driver involved in a crash that killed an eight-year-old girl and her mother.
A Regina chiropractor accused of sexually assaulting seven different women took the stand Thursday as arguments began in his defense.
Evraz North America says an investigation is underway after a contractor was fatally injured while on the job in Regina on Nov. 19.
The Regina Pats have announced a blockbuster trade Thursday that sees captain Tanner Howe on his way to Calgary to play for the Hitmen as the team continues rebuilding for the future.
A crash between an LRT train and car shut down a busy Kitchener street for more than eight hours on Thursday.
FunGuyz, which calls itself the biggest magic mushroom dispensary in Canada, says it's shutting down all 30 of its Ontario locations.
A fight between rival outlaw motorcycle gangs has led to multiple arrests, more than a dozen charges and the seizure of 17 firearms.
A Saskatchewan principal convicted to six months behind bars for sexual assault has another chance to prove he’s the victim of a middle-school prank that escalated out of control.
After being sworn in Wednesday night alongside a mix of new and returning city councillors, Cynthia Block becomes the first female mayor of Saskatoon.
A Saskatchewan tuxedo business says struggles with inflation and operating costs have caused it close stores across the province.
After years of delays, the province has pulled the plug on an addiction treatment centre in North Bay. A news release from Canadore College on Thursday confirmed the centre won’t be moving forward.
Canadians will soon receive a temporary tax break on several items, along with a one-time $250 rebate, Prime Minister Justin Trudeau announced Thursday.
The City of Elliot Lake said Thursday it has received a $3-million donation from Edward and Suzanne Rogers for the Centennial Arena restoration.
The first day of 2025 Budget deliberations at city hall saw a pair of high-priced programs supported by council – but only after finding ways to keep the cost off property tax bills.
Police say that on Thursday, November 21 between the hours of 1:30 a.m., and 4:30 a.m. the suspect came and went from a residence on Conway Drive.
An Ontario law firm is seeking information about the movements and activities of a Catholic priest who was convicted of sexually abusing a 12-year-old boy before he died.
Just weeks after endorsing a plan set to bring a new sports field to the downtown core, there's another major shakeup on the horizon.
The Crown played audio recordings in a Barrie courtroom Thursday afternoon that provided a glimpse into the lives of alleged human traffickers Lauriston and Amber Maloney and the group of young women who lived and worked for them.
Radon is the number one cause of lung cancer in non-smokers in Canada, according to Grey Bruce Public Health Unit.
An Ontario law firm is seeking information about the movements and activities of a Catholic priest who was convicted of sexually abusing a 12-year-old boy before he died.
They’ve been based out of the basement of Hotel Dieu Grace Healthcare for many years, rent free - however, that partnership is coming to an end.
Windsor police are asking for the public’s help identifying a suspect wanted in connection to an alleged serious assault that happened this past summer.
Vancouver Island’s major crime unit is investigating the case of a Victoria teenager whose death was initially ruled an accidental overdose, but has since been reclassified by coroners as a homicide.
All 44 members of the B.C. Conservative caucus have been appointed to leadership positions – whether as shadow cabinet members or Opposition house leader.
One person is dead after a fire that destroyed a home in Nanaimo's south end Wednesday morning.
Police are appealing for information on a targeted shooting that resulted in the hospitalization of a man in Kamloops.
British Columbia's independent police watchdog has cleared officers of wrongdoing in a crash where three people were killed south of Kamloops in July of last year.
A B.C. woman who stole more than $14,000 in volunteer-raised funds that were supposed to be spent on school supplies and programs – including hot meals for vulnerable kids – won't spend any time in jail.
The Hurricanes launched a three-game road trip south of the border Wednesday dropping a 4-0 game to the league-best Everett Silvertips.
A new citywide campaign is hoping to encourage residents to shop, eat and explore local this holiday season.
Agriculture is an industry mainly dominated by men, but around 80 middle school and high school students – all of whom are female – are hoping to change that.
Sault-based charity Save Our Young Adults, or SOYA, will soon move to a new home -- for good reason.
The City of Elliot Lake said Thursday it has received a $3-million donation from Edward and Suzanne Rogers for the Centennial Arena restoration.
Students in Sault College’s business accounting program have a new learning pathway that will ultimately give them a head start to a career.
A Newfoundland energy company's embrace of data centres is raising doubts about eastern Canadian hopes of harnessing the region's howling winds to supply Germany with power from green hydrogen.
An international group led by a Canadian is in Rome this week to push the Catholic Church to adopt a zero-tolerance policy on abuse by clergy.
A company hoping to build a multi-billion-dollar wind-to-hydrogen project in western Newfoundland is eyeing other options as Canada's plans to supply Europe with green energy have not yet materialized.
The Shopping Trends team is independent of the journalists at CTV News. We may earn a commission when you use our links to shop. Read about us.
