Market Trends of Hospitality Industry In Canada
The Increase in Tourist Arrivals and Hotel Occupancy also Results in an Increase in Spending
Canada's tourism industry significantly contributes to the country's overall economic growth. The sector, which encompasses hospitality services and travel to Canada and beyond, employs hundreds of thousands and is supported by governments nationwide.
The tourism industry in Canada is one of the most significant contributors to Canada's economic development. This sector includes hospitality and travel to and from Canada and is one of Canada's largest economic sectors. Spending on tourism in the first quarter of the current year was 106% higher than spending in the first three months of the pre-pandemic era when adjusted for inflation, compared to the same period last year.
The Number of Hotel Construction Projects is on the Rise
The robust recovery in the hospitality sector has piqued the interest of investors anticipating continued income growth in the near- to mid-term. The escalation in land and construction costs has also entered the calculus for investors who see existing assets as relative bargains compared to building new hotels. New hotel construction projects were announced across Canada this year, which will bring in more new rooms and lower rates.
The Canadian tourism and hospitality industry experienced a surge in domestic and international tourism, which further accelerated the rising number of hotel construction projects. While larger groups have been slow to come back, smaller group meetings and leisure activities are on the rise in cities and tourist hot spots. As bookings and occupancy numbers in these markets have risen, so has developer and investor interest.
The province of Ontario remains at the top of the pipeline with an all-time high, followed by British Columbia, Quebec, and Alberta. Together, these provinces account for 59% and 60% of Canada's total pipeline.
