Tourism spending in Canada rose by 4.4% in 2021 after a staggering 49% decline in 2020.
Accommodation services (+16.8%) and food services (+13.3%) were the main drivers of this growth, according to Statistics Canada data released last week.
“This growth more than offset the annual decline in passenger air travel (-17.8%) and tourism services (-33.3%),” the federal agency said in a statement.
On the other hand, in the fourth quarter of 2021, domestic tourism spending increased by 8.7 percent after increasing by 29.3 percent in the third quarter.
“Despite the continued threat of COVID-19 and the emergence of new options throughout 2021, the increase in vaccination rates throughout the year and the associated relaxation of restrictions have led to an increase in tourism spending in Canada in 2021. By the end of the third quarter, fully vaccinated travelers were allowed to enter Canada for non-essential travel,” Statistics Canada said, which recalls that in the fourth quarter, Canada reinstated some travel requirements due to the omicron option.
Employment in the tourism sector increased by 5.1 percent in the fourth quarter, mainly driven by catering services (+4.8 percent) and accommodation (+5.7 percent). Overall, employment increased by 1.5% in 2021.
Meanwhile, the gross domestic product (GDP) of tourism grew by 11.9 percent in the fourth quarter of 2021 and 5 percent from a year earlier. “Despite this increase, Q4 tourism GDP was 35% below pandemic levels,” Statistics Canada said.