Results from a recent opinion poll of Canadian hoteliers reveals pessimism amongst the tourism industry in Canada. A survey of hoteliers in Canada revealed that 65% hotel owners were pessimistic about the future outlook of the business, whereas only 8% were optimistic about the future outlook of the business. “Thus, the balance of opinion, or the difference between the two, was –57”%. [Statistics Canada]
On a positive note, the pessimism observed in the current quarter is lower than the one observed in the past two quarters. The hotel owners believe that vacancy rates will remain high and the room rents would remain low in the near future.
As the recession is slowly on its way out, the discretionary spending for both households and businesses continues to be low in Canada. This has an adverse impact on travel and tourism industries. Both businesses and households have reduced their travel budgets and are unlikely to resume spending on travel and tourism in the next few months.
If all goes well, one is likely to believe that the travel and tourism in Canada should be able to recover by summer 2010. The growth in travel and tourism in Canada is supported to a large extent by visitors from the United States, who are likely to increase their discretionary spending by summer 2010.