Gotta travel on
The tourism industry’s long road back from the pandemic
By Rob Roach, ATB Economics 10 June 2024 1 min read
The pandemic caused problems for a lot of economic sectors and this was certainly the case for tourism.
The flow of non-resident visitors highlights just how disruptive the pandemic was:
In April 2019, almost 2.7 million international travellers visited Canada. In April 2020 (the first full month after the COVID-19 pandemic was declared), it was less than 58 thousand.
It was the same story for non-resident visitors entering Canada via Alberta at 102,744 in April 2019 compared to just 2,165 one year later.
As you can see from the chart below, the trek back to pre-pandemic numbers was a long one.
It wasn’t until last summer that the number of tourists entering Canada via Alberta returned to pre-pandemic levels.
Nationally, international visits are still below their pre-pandemic level (see the second chart below).
As such, the pool of international travelers entering Canada from elsewhere who might also visit Alberta remains smaller than it was pre-COVID. This also affects Alberta-based tourism businesses that have operations in other parts of Canada.
Not surprisingly given the drop in the number of visitors, the amount of money spent by international tourists also collapsed during the pandemic.
Thankfully, though inflation has no doubt played a role, spending by international visitors last year was above the pre-pandemic level in 2019 in Canada (+6%) and Alberta (+28%).
Notwithstanding ongoing labour shortages and cost pressures in tourism-related sectors such as accommodation and food services and transportation, the data on international visitors indicate that Alberta’s tourist industry is finally back on its feet after COVID.
Tourism is also a sector in Alberta with significant growth potential and one we expect to post strong numbers this year and going forward.
Answer to the previous trivia question: The Stonewall Uprising took place on June 28, 1969 in New York City and is considered to have sparked the 2SLGBTQ+ rights movement.
Today’s trivia question: When was the last time a Canadian team won the Stanley Cup?
Economics News