The Canadian Tourism Commission operates in 11 countries around the world. Our global marketing and sales teams provide expert knowledge and support to the local travel trade, conduct media relations and promotional activities, launch consumer advertising and promotional campaigns, and maintain a strong presence at consumer and trade shows. We are a vital resource for the Canadian tourism industry in international markets.
With 202,200 arrivals in 2010, Australia is Canada’s fifth-largest inbound market as well as Canada’s second-largest market within the Asia-Pacific region (Japan is the largest).
According to the International Monetary Fund, Australia was one of the few advanced economies to avoid a recession in 2009, reflecting a supportive macro policy response, a healthy banking system, a flexible exchange rate and a robust demand from Asia. In 2010, Australia’s GDP expanded by 2.7% after slowing to a crawl in 2009. Real GDP growth in 2011 is expected to expand at 1.5%, reflecting an economy recovering from a series of natural disasters that significantly impacted exports earlier in 2011. Despite uncertainties about the state of the global economy, Australia’s economic outlook remains favourable for the rest of 2011 and into 2012.
Buoyed by a strong currency and a vibrant economy, outbound travel by Australians soared by 13.1% in 2010. Australian overnight trips to Canada increased by 7.5%%, with total spending growing 9.3% year-over-year. The strong value of the Australian dollar is expected to remain a key factor stimulating outbound travel.
According to Statistics Canada’s International Travel Survey (ITS), Australia boasts the second-highest per night spending by visitors in Canada—equal to the US leisure market and after the US meeting, conventions and incentive travel (MCIT) market. In 2010, Australian travellersspent on average $1,687 per person per trip in Canada, with a typical trip length of14.5 nights. The majority of Australians travelled for holiday purposes (53%) and to visit friends and relatives (29%).
Brazil has experienced rapid growth in flight availability this past decade, which has led to a corresponding growth in outbound travel. In the past six years, Brazilian travel beyond South America has grown 15% annually from 1.7 million trips in 2004 to 4.3 million trips in 2010.
Presently, Brazil is the 10th-largest economy in the world in terms of GDP. During the global economic recession in 2009, Brazil’s GDP shrunk by 0.2%, but this country was one of the first emerging markets to recover. Revived consumer and investor confidence got the ball rolling, and export-led GDP growth rebounded by 7.5% in 2010.
In 2010, Canada welcomed 71,300 overnight visitors from Brazil, up 26% from 2009, who spent $129 million while in this country. Building on 2010’s momentum, the first seven months of 2011 saw a 10% year-over-year increase in arrivals.
In 2010, 92% of overnight visitors from Brazil came to Canada for leisure travel. Those Brazilians most interested in visiting Canada predominantly live in Rio de Janeiro and São Paulo. Although Brazilian long-haul travellers do much of their trip planning and research online, more than half still book their trips through the travel trade. For more insights into Brazilian long-haul travellers, download the Brazil Consumer and Trade Research Summary Report.
As the world’s fastest-growing major economy and outbound tourism market, China managed to navigate through the global economic crisis relatively unscathed. Even at its lowest point, China enjoyed GDP growth of 6.1%. By 2020, the World Tourism Organization is projecting China will have 100 million international travellers, making it the largest outbound tourism market in the world. According to data provided by the Chinese National Tourism Administration (CNTA), China recorded 47.6 million outbound tourists in 2009, a 3.9% increase over 2008.
With the official signing of the Approved Destination Status (ADS) agreement between China and Canada, our country is well positioned to take advantage of any growth in this market. While Chinese visitors to Canada increased by a moderate 0.4% in 2009, April 2010 showed a 1.2% increase in visitor numbers over 2009.
France is Canada’s third-largest inbound market. In 2010, Canada welcomed 408,100 overnight French visitors, who spent $521 million while in this country. Among French travellers, 45% indicated that their main purpose for visiting Canada was for holidays, while 34% visited Canada primarily to see family and friends.
The French economy is the fifth largest in the world, having overtaken the UK in 2008 as the sterling depreciated against the euro. Although France is increasingly under pressure to deal with its deficit, healthy export growth and a recovering domestic demand combined to produce a dynamic GDP expansion in 2010 and early 2011. While the sovereign debt crisis in the Euro zone and its impact of the French financial sector remain significant sources of uncertainty, stable consumer sentiments and inflation levels, along with improved labour conditions and a strengthening of the euro, have combined to create favourable conditions for long-haul travel.
Compared with competitive destinations, Canada is well positioned—it tops the list of places that comes to mind for French consumers for a long-haul holiday. Following a 4.1% drop in 2009, overnight visits from France increased by 5.1% in 2010 and, with a 5.8% increase in overnight arrivals up to August 2011, is poised to expand at a similar rate in 2011.
Germany, Europe’s largest economy and the world’s fourth largest, was hit harder by the global economic crisis and the subsequent collapse in world trade than most other countries. In 2009, Germany’s GDP contracted by 4.9%, but recovered to rise 3.5% in 2010. The export-led German economic upswing is expected to continue: GDP is forecast to expand 3.0% in 2011, driven largely by domestic demand. With Germany’s labour market strengthening, plus rising disposable incomes and strong pent-up consumer demand, private consumption is expected to be a key driver of economic growth throughout 2011.
Not surprisingly, Germany’s economic rebirth has prompted a renewed interest in long-haul travel. CTC’s Global Tourism Watch report suggests that travel intensity among long-haul travellers is strengthening, with German travellers increasingly willing to venture to holiday destinations further afield, including Canada. Improving economic conditions and a strong euro are providing German travellers with real value in outbound tourism opportunities.
In 2010, Canada welcomed 315,400 overnight visitors from Germany—up 8.1% over 2009—which represented $330 million in tourism receipts in Canada. Pleasure travel was reported as the main trip purpose by 48% of German visitors.
According to the World Fact Book published by the Central Intelligence Agency, India’s population of approximately 1.18 billion people is currently the second largest in the world. That figure is forecast to grow by 1.5% (18 million) per year to reach over 1.6 billion by 2050. India’s emerging middle class is expected to surge tenfold, exceeding 500 million by 2025. It will command 60% of the country's spending power.
The common language, positive trade relationship, improving visa services, economic prosperity, rising income levels and affluent middle class still make India an attractive key market for Canada moving forward.
India continued to be one of the fastest-growing world economies in 2010, led by fixed investment and private consumption. The economy grew by 8.9% in that period, with 2011’s growth anticipated at 7.1%. However, one of India’s challenges is to lower inflation, which is running close to double digits.
An estimated seven million Indian tourists headed to long-haul international countries in 2010. Of those, Canada received a total of 149,900 overnight travellers—a 17% year-over-year gain—with travel receipts increasing 19% to $145.2 million. The first seven months of 2011 saw that positive momentum for travel to Canada maintained: arrivals from India rose almost 6%.
Japan boasts Asia's largest—and the world’s second-largest—economy. Recent world economic events, the H1N1 flu pandemic and a decrease in the popularity of long-haul travel have all contributed to a decline in Japanese travel to Canada. Moving forward, long-haul travel is expected to rebound somewhat given Japan’s emergence from the recent recessionary period and the domestic measures taken to encourage outbound travel.
Despite reeling from the March 2011 natural disasters, Japan’s massive rebuilding efforts have led to a strong economic environment in the second half of 2011. Coupled with a rebound in auto and electronics manufacturing, this should remain into 2012. However, once this temporary stimulus wears off, longer-term structural issues such as less-favourable demographic trends, high debt and currency strength are expected to leave Japan on a slower growth path.
Canada received 215,400 visitors from Japan in 2010, which represented over $330 million dollars of tourist spending. Among Japanese travellers in 2010, 52% indicated their main reason for travelling to Canada was for holiday purposes, while 22% indicated they travelled to see family and friends.
Despite steady drops in visitation from this country in the past few years, Japan still represents one of the highest-spending international travel markets to Canada and is a continued focus for the CTC and the tourism industry in Canada.
Mexico experienced a healthy economic turnaround in 2010, achieving GDP growth of 5.4% after a 6.6% decline in 2009. That growth remained robust during the first half of 2011, despite challenges from a weak US economy and the March earthquake and tsunami in Japan, which impacted the automotive industry. A still-sluggish US recovery is expected to slow Mexico’s momentum down to 3.8% in 2011.
Canada remains popular among Mexicans as a favoured destination. However, the introduction of visa restrictions in July 2009 resulted in a significant drop in overnight visitation to Canada in both 2009 (-37%) and in 2010 (-28%). Despite the change, Canada remains a destination of choice for experienced and high-frequency Mexican travellers. Indeed, while overnight visits from Mexico fell by 48% in the first 12 months after the restrictions were implemented, numbers picked up by 6% in the subsequent period between August 2010 and July 2011.
In 2010, Mexicans made 115,900 overnight trips to Canada, which accounted for over $158 million in tourism receipts, a 32% year-over-year decline.
In the past decade, South Korea has emerged as a significant country for outbound tourism, with Canada tapping into an increasing share of this thriving long-haul market. Following a 10% decline in outbound travel in 2008 and a further 21% drop in 2009 due to the global recession, South Korean travel to Canada rebounded in 2010, reaching 157,500 overnight travellers who spent $255 million, up 18% from 2009.
South Korea’s strong economic rebound in 2010 was largely responsible for the gains in visitors. However, amid prevailing global economic uncertainty, momentum slowed in the latter part of 2011, caused in part by the debt problem in the Euro zone and soaring domestic inflation. The good news: GDP growth is projected to settle at 3.8% for 2011 and regain moderate momentum in 2012.
The UK is Canada’s second-largest inbound market after the US. While it continues to be one of the most robust and dynamic travel markets in the world, the UK’s challenging economic situation constrains outbound long-haul travel.
The United Kingdom is a leading trading power and financial centre and the third-largest economy in Europe after Germany and France. After a sustained economic expansion, the 2008 global financial crisis hit the UK’s economy particularly hard because of the importance of its financial sector. High consumer debt and sharply declining home prices compounded the UK’s economic problems, which prompted the government to implement a series of measures to stimulate the economy and stabilize the financial markets. However, faced with a spiralling budget deficit, the coalition government initiated a five-year austerity program in 2010 aimed at lowering the country’s deficit from over 10% of GDP in 2010 to 1% by 2015.
While the UK gets its financial house in order, consumer confidence has been weakened by ongoing uncertainty over job prospects, creeping inflations and VAT rates. As a result, British travellers have cut back on outbound travel for the past three years. On the positive side, the UK’s Office of National Statistics suggests that long-haul travel trends over the first half of 2011 have edged up to destinations outside of Europe.
In 2010, 659,400 overnight travellers from the United Kingdom visited Canada, down 3.8%. These visits represented $809 million in tourism receipts in Canada, a 9.5% contraction over 2009. Among UK overnight travelers to Canada, 82% come for holidays or to visit family or friends.
According to the US Department of Commerce, International Trade Administration, roughly 37 million Americans travelled outside the US by air in 2010, down 3.8% compared with 2009. Of those travellers, 11.7 million-plus made overnight trips to Canada, a 0.7% increase over 2009. From 1996 to 2010, US leisure spending in Canada grew from $3.9 billion to $4.8 billion. That figure rises to $6.3 billion with the inclusion of the meetings, conventions and incentive travel (MC&IT) sector.
The US initially emerged showing strong gains in 2010 in the wake of one of the most protracted and deep recessions on record. While economic growth was sluggish through most of 2010, it finished on a high note in the final quarter, buoyed by the strongest consumer spending in years on big-ticket items such as cars and furniture. However, cuts in government spending and increases in food and fuel prices softened the US economy, dimming the prospect of relief for millions of unemployed Americans.
CTC’s latest Global Tourism Watch reports that international travel intentions in this market are up for the next three years, indicating a partial recovery in leisure travel demand in 2011. Indeed, overnight air travel from the US was up over 3% on a year-over-year basis. However, several factors could threaten that improvement, including rising gas prices, travel costs and inflation, as well as unfavourable exchange rates.
In 2010, close to 55% of Americans travelling overnight to Canada visited for vacation purposes, while another 23% visited family and friends. Although the MC&IT market represented a smaller number of travellers, they spent on average $248 per night in 2010, which exceeds the US leisure market and CTC’s other key international markets.