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Canadian Travel Rebound: Hotel Rooms Filling Up But Staffing Issues Remain and Business Travel Lags

Canadian hotels are pretty much back to 2019 occupancy levels, and Google searches for Canada are higher than they were prior to the pandemic.

Destination Canada’s quarterly report, issued today, finds that travel has strongly rebounded in the country.

“Buoyed by hotel occupancy in regions exceeding their 2019 levels and lifts in urban areas closing in on their pre-pandemic performance, average hotel occupancy in June 2022 for Canada stood 1% below its 2019 level,” the report said. “Travel to Canada is in demand, with Google search from international markets exceeding 2019 levels.”

Destination Canada said domestic air connectivity has improved to 90% of its 2019 level, while international seat capacity to Canada stands at 84%, ten percentage-points above the world average.

But there are still concerns. Tourism spending is only at 72% of 2019 levels, and staff shortages are a problem.

“The number of active businesses in the tourism industry continues to grow, though it still lags pre-pandemic levels and Canadian business norms,” the report said. “Businesses that offer travel services and passenger transportation are furthest behind pre-pandemic levels. Labour in tourism continues to be a challenge.”

Business travel also is problematic.

“Despite growing confidence and eagerness to attend in–person events, scheduled international business events continue to trail pre-pandemic levels,” Destination Canada said. “Future bookings are well-below pace.”

The report said Americans list Canada as their most preferred international destination, ahead of Italy, Mexico, France and Japan. Twenty six per cent of those surveyed said they’ll be heading to Ontario, while 19% said British Columbia and 17% said Quebec.