Tourism in AlbertaA Summary of Visitor Numbers Revenue by homers


									  Tourism in Alberta
  A Summary Of Visitor Numbers, Revenue
  & Characteristics –1998

Based on the 1998 Canadian & International Travel Surveys (Statistics Canada)

Policy & Economic Analysis
Alberta Economic Development
December, 1999

  Research Resolutions
  & Consulting Ltd.
Tourism in Alberta: A Summary of Visitor Numbers, Revenue, & Characteristics -- 1998

                                                            TOURISM IN ALBERTA

                           A Summary Of Visitor Numbers, Revenue & Characteristics -- 1998

Whether to see their friends and relatives, for business or for pleasure,
more than 22.3 million person visits to destinations in the province were
                                                                                     Origin of Person Visits in Alberta - 1998
made in 1998 by Alberta residents, other Canadians, and visitors from the
USA and Overseas (same-day and overnight trips). Tourism generated
$4.12 billion in consumer spending for the province during the one-year
                                                                                         Other USA
To better understand the size, characteristics and spending activity of                                            4%
                                                                                        Canada 6%
these visitors, Alberta Economic Development commissioned Research
Resolutions & Consulting to prepare special analyses of the 1998                         12%
Canadian and International Travel Surveys conducted by Statistics
Canada. These consumer surveys provide tourism information for travel                                                              Alberta
in Alberta by Canadians for trips of at least 80 kilometres one way from                                                            78%
home, and trips to the province made by American and Overseas visitors
to Canada. Almost all trips, whether same-day or overnight, are
included.1                                                                                           N = 22.3 million person visits

This summary highlights key findings only. For more information on
tourism in Alberta, please contact Alberta Economic Development.2           Overnight visits: More than half of all visits in the province included at
                                                                            least one overnight stop (55%), yielding 12.2 million overnight person
Who travels in Alberta?                                                     visits in 1998. Almost all Overseas visitors spent at least one night in
                                                                            Alberta (748,000) and so did most Americans (1.1 million). Fewer than
All trips, all purposes: More visits in Alberta are made by residents of
                                                                            half of the 1998 visits in the province by Albertans involved spending a
the province than by other Canadians, Americans or Overseas visitors. Of
                                                                            night away from home (45%, or 7.8 million overnight person visits).
the 22.3 million person visits (same-day and overnight) in the province,
                                                                            Major inbound overnight markets: Key sources of overnight inbound
17.3 million were made by residents of the province (78%) and 2.8
                                                                            travel for Alberta include neighbouring provinces, northwestern USA
million were made by residents of other parts of Canada (12%).
                                                                            states and major European and Asian markets.
Americans made 1.3 million visits (6%) and visitors from Overseas made
over three-quarters of a million visits to Alberta in 1998 (4%, 793,000).

Alberta Economic Development
Tourism in Alberta: A Summary of Visitor Numbers, Revenue, & Characteristics -- 1998

Key Inbound Overnight Markets                                                of overnight travel by Albertans (12%) and a slightly higher proportion of
                                      Overnight Person Visits                American overnight travel in the province (16%). Business travel among
(In Rank Order)
                                                                             Overseas overnight visitors to Alberta in 1998 was more modest (9%).
British Columbia                             1,122,000
Saskatchewan                                  732,000
Ontario                                       360,000
Manitoba                                      275,000                                Main Purpose of Overnight Visits - 1998
United Kingdom                                178,000
Washington                                    151,000
California                                    124,000                             Overseas    0.07     0.1                       0.5
Japan                                         115,000
Germany                                        99,000                                  USA    0.09    0.2      0.2                     0.6
Montana                                        90,000
Texas                                          63,000                          Other Canada
                                                                                              0.3      0.5                 1.1                 0.7
Oregon                                         50,000
                                                                                    Alberta   0.7 0.9                3.3                     2.9
British Columbia is a substantive source of inbound overnight travel to
Alberta (1.1 million overnight person visits), followed by Saskatchewan               Total   1.0 1.6                4.7                     4.8
(732,000), Ontario (360,000) and Manitoba (275,000).
                                                                                                     Overnight person visits in millions
The United Kingdom (178,000) generated more overnight visits to                                  Other       Business      VFR   Pleasure
Alberta in 1998 than did any USA state. Japan (115,000) delivered more
overnight visitors than did states such as Texas and Oregon. Major
American markets include Washington (151,000), California (124,000)
and Montana (90,000).                                                        Tourism spending in Alberta
                                                                             All purposes, all spending: Of the $4.12 billion in tourism spending in
Main purpose of overnight travel                                             Alberta in 1998, the vast majority is spent by visitors who make same-day
Across all markets, the overnight pleasure segment represents two-fifths     or overnight visits to locations in the province ($3.7 billion). The
(39%) of all overnight travel in the province or 4.8 million overnight       remaining $457 million represent expenditures on tourism by Albertans
person visits. One-third of Albertans' overnight travel in the province is   who are leaving the province (carrier fares).3
done for pleasure (36%) and over two-fifths is motivated by visiting
friends and relatives (VFR, 43%).                                            Spending on the Alberta visit: Excluding carrier fares by visitors to
                                                                             reach or leave the province, Albertans are the largest source of tourism
The pleasure market represents the majority of overnight travel in the       spending primarily because they represent the largest market for travel in
province by American visitors (60%) and those from Overseas (73%).           the province. Regardless of the purpose of their trip or its duration,
The highly lucrative business travel segment characterizes one-eighth        Albertans spent $1.65 billion of the $3.67 billion spent by visitors to

Alberta Economic Development
Tourism in Alberta: A Summary of Visitor Numbers, Revenue, & Characteristics -- 1998

locations in the province in 1998 -- a level of spending twice that of all
other Canadians who visited the province ($814 million). Americans
spent $636 million and Overseas visitors spent $566 million in the                             Spending on Overnight Visits
province over the year.                                                                            by Category - 1998
Tourism Spending in Alberta - 1998
                        All              Overnight           Overnight         Overseas            $53           $191             $111          $60         $107
                       Visits             Visits           Pleasure Visits
                                                                                     USA           $64            $262                   $125         $62     $80
Alberta            $1.65 billion        $1.08 billion       $367 million
Other Canada       $814 million         $794 million        $235 million                    $84
USA                $636 million         $626 million        $395 million         Canada             $387           $470             $508          $130 $290
Overseas           $566 million         $564 million        $422 million                    $159
                                                                                    Total           $505           $923             $744          $251      $477
Overnight spending: Within the overnight travel segment, Albertans
outspent visitors from all other markets ($1.08 billion).                                                  Spending in millions

                                                                                  Public/Local Transort       Private Auto                Accommodation
                                                                                  Food/Beverages              Recreation/Entertainment    Retail/Other
             Overnight Spending in Alberta by Main
                        Purpose - 1998                                        Spending by category: Of the $3.06 billion spent by overnight visitors
                                                                              in Alberta, almost one-third was spent on accommodation ($923 million)
                                                                              and about one-quarter was spent on food and beverages ($744 million).
                                Other                VFR                      One-seventh of overnight visitor spending was on private auto operation
                                 6%                  21%                      or vehicle rental ($505 million) and the same proportion was spent in the
         Business                                                             retail sector ($477 million4). Overnight visitors spend fewer than 1-in-10
           26%                                                                of their dollars on entertainment and recreation ($251 million), and even
                                                                              fewer on public and local transportation ($159 million).

                                                                              Within the overnight travel segment, Canadians are the largest
                                                        Pleasure 47%          contributors to spending in all categories. They account for three-quarters
                                                                              of private auto spending and two-thirds of all food/beverage spending in
                     Total Overnight Spending = $3.06 billion                 the province, but only half of the accommodation spending. The
                                                                              remaining half of spending on lodging is divided between American
                                                                              overnight visitors (28%) and those from Overseas (21%). Each of these
Within the overnight pleasure segment however, the Overseas market            inbound markets also accounts for about one-quarter of the
($422 million) and Americans ($395 million) spend more than does the          recreation/entertainment spending on overnight visits in Alberta (USA,
resident market. Almost half of all overnight spending on visits in Alberta   25%; Overseas, 24%).
is associated with trips made for pleasure purposes ($1.4 billion).
Alberta Economic Development
Tourism in Alberta: A Summary of Visitor Numbers, Revenue, & Characteristics -- 1998

Spending patterns - by market: American visitors spend more money
per travel party per night in 1998 than do Overseas or Canadian visitors in                     Accommodation in Alberta - 1998
the province. For every night that an American travel party spends in
Alberta, $277.00 change hands. This per party per night average is
slightly higher than Overseas visitor parties ($239.00) and considerably
higher than the per night spending done by Canadian households                      Overseas                2.3                   0.5               1.4         0.6
travelling in Alberta ($101.00).
                                                                                         USA                  2.6                       0.5               1.0   0.5
Average Overnight Tourism Spending In Alberta - 1998
Per Party Per Night        All Overnight         Overnight Pleasure             Other Canada         3.3                1.0                   7.7                 0.5
Canada                         $101.00                $116.00
   Alberta                       $99.00                 $105.00                       Alberta      4.4            3.2                     10.8                    0.8
   B.C.                          $101.00                $145.00
   Saskatchewan                  $101.00                $154.00                         Total        12.6                5.3                  20.9                2.5
   Ontario                       $116.00                $140.00
USA                            $277.00                $341.00                                                 Person Nights in Millions
Overseas                       $239.00                $297.00
                                                                                             Hotels, Motels, Resorts           Camping/Trailer Parks
                                                                                             Private Homes/Cottages            Other
Within the overnight pleasure market segment, Americans are also the
highest per diem spenders ($341 per party per night), followed by
Overseas visitors ($297.00) and Canadians ($116.00).                           Albertans spent 10.8 million person nights in the homes of their friends
                                                                               and relatives or their cottages. They also spent 4.4 million nights in the
The substantively lower spending by Canadians relative to Americans and        province's hotels, motels and other commercial roofed properties,
Overseas visitors is likely a function of the comparatively low rate of use    representing just over one-third of all nights spent in these commercial
of paid, roofed accommodation within the domestic market. Canadians            properties. Other Canadians (26%), Americans (21%) and Overseas
are much more likely to stay with their friends and relatives or in            visitors (18%) use the remaining roofed commercial rooms in Alberta in
campsites on their overnight trips than are visitors from other countries      1998.
(see below).
                                                                               Canadians tend to dominate Alberta's campgrounds. They account for
Accommodation in Alberta                                                       80% of all camping nights in the province: of the 5.3 million person
Over the course of 1998, visitors spent 41.3 million person nights in          nights spent in these facilities, the Alberta resident market accounts for
Alberta. Almost one-third of these nights were spent in the province's         3.2 million and Canadians from other provinces account for 1.0 million.
hotels, motels, resorts, housekeeping cottages, bed and breakfast              The remaining camping nights in the province are evenly split between
establishments and other commercial roofed properties (12.6 million). A        Americans (10%) and Overseas visitors (10%).
further 13% were spent in campgrounds and trailer parks in the province
(5.3 million), but just over half of all nights spent by visitors in Alberta
were spent in the homes of friends and relatives, private cottages and
other non-commercial accommodation (20.9 million).

Alberta Economic Development
Tourism in Alberta: A Summary of Visitor Numbers, Revenue, & Characteristics -- 1998

                                                                                           Activities on Trips Among All Overnight
Activities on overnight trips                                                                   Person Visits in Alberta - 1998
Overnight visitors in Alberta visit friends and relatives, shop, sightsee,
and engage in outdoor sports and activities including skiing, hiking,
fishing, hunting and water sports. Many also visit parks and historic sites           Outdoor Activities                                         4.2 million
on their trips in Canada.5                                                          Parks/Historic Sites                           2.9 million
                                                                                           Theme Parks      0.8 million
Activities vary by market among overnight pleasure visitors to Alberta.                         Nightlife            1.4 million
For example, Canadians are especially apt to visit friends and relatives                    Sightseeing                                           4.3 million
and to engage in outdoor activities whereas American and Overseas                              Shopping                                                  5.0 million
pleasure visitors are particularly interested in sightseeing, shopping, and               Sports Events        0.9 million
visiting parks and historic sites.                                                       Cultural Events                  2.0 million

                                                                                               Festivals    0.6 million                                                8.0 million
Activities Among Overnight Pleasure Visitors - By Market                       Visiting Friends/Relatives
                                     Canada    USA        Overseas
Overnight Person Visits - Pleasure     %        %           %
Visiting Friends/Relatives             51       14          34
Festivals/Fairs                         6        6           7
Cultural Events                        18       41          51                Seasonality
Sports Events                          11        3           8                The warmer weather months are more likely to generate travel in Alberta
Shopping                               38       78          83                than are the colder seasons. The lure of July through September is
Sightseeing                            49       86          91                especially evident for American and Overseas overnight travel in the
Nightlife                              10       16          16                province, with more than half of all overnight visits by these non-
Theme Parks                             8       12          21                domestic visitors taking place in this three month period. Ontarians also
Parks/Historic Sites                   31       82          82                concentrate their overnight travel to Alberta in the warmer months, with
Outdoor Sports/Activities              58       41          38                two-fifths of their travel taking place between July and September.
                                                                              Albertans and their neighbours in British Columbia and Saskatchewan
                                                                              spread their travel to Alberta somewhat more evenly through the seasons,
Inbound visitors from other countries are also more apt to engage in          but are still more apt to take overnight trips in Alberta between July and
cultural activities on their overnight pleasure trip in Canada than are       September than they are to travel in Alberta during any other calendar
Canadians.                                                                    quarter.

Alberta Economic Development
Tourism in Alberta: A Summary of Visitor Numbers, Revenue, & Characteristics -- 1998

                                                                                        Edmonton & Area, Heartland, and the Rockies regions each attracted
Calendar Quarter of Overnight Visits in Alberta -- 1998                                 about one-fifth of the nights spent by visitors in the province whereas
                              Jan - Mar Apr - June July - Sept Oct - Dec                one-in-ten person nights were spent in Alberta's South and fewer were
                                                                                        spent in Alberta's North (7%).
All Overnight Visits   (%)          15                25         38             22
By Market
Canada                 (%)          16                24         36             24      The Rockies and Calgary & Area are the most widely visited tourism
    Alberta            (%)          17                24         36             23      regions in Alberta for American and Overseas visitors. In fact, almost
    B.C.               (%)          7                 28         37             27      one-half of all person nights spent by Overseas visitors to Alberta and
    Saskatchewan       (%)          23                21         32             24      two-fifths of nights spent by Americans are spent in the Rockies.
    Ontario            (%)          16                21         42             22
                                                                                        Canadians, however, spend comparatively few of their nights in the
USA                    (%)          9                 25         52             14
                                                                                        Rockies (11%), concentrating more heavily on Heartland, Calgary &
                                                                                        Area and Edmonton & Area.
Overseas                            10                26         54             11

                                                                                        Person Nights in Alberta's Regions -- By Market (All Purposes)
Overnight tourism in Alberta's regions
Major urban areas are magnets for overnight travel in Alberta. Over the                                           Canada          USA         Overseas
course of 1998, one-quarter of all person nights in the province were                   Person Nights            31.7 million   4.7 million    4.9 million
spent in Calgary & Area.                                                                                             %              %              %
                                                                                        North                         8             2              2
                                                                                        Heartland                    23             5              4
                        Nights Spent in Alberta                                         Edmonton & Area              21            18             16
                       by Tourism Region - 1998                                         Rockies                      11            41             48
                             (N = 41.3 million person nights)
                                                                                        Calgary & Area               25            22             24
                                                                                        South                        11            11              7

            South                                4.3 million
                                                                         10.2 million
    Calgary & Area

          Rockies                                               7.7 million

 Edmonton & Area                                                  8.4 million

         Heartland                                              7.8 million

             North                    2.7 million

Alberta Economic Development
Tourism in Alberta: A Summary of Visitor Numbers, Revenue, & Characteristics -- 1998

  The Canadian Travel Survey (CTS) is a monthly telephone survey among Canadians 15
years of age or over. The study captures travel in the previous month by the respondent
for all trips 80 km or more one way from home, for all purposes other than commuting to
work or school, crews, and moving to a new residence.
The International Travel Survey is a self-completion survey, distributed at ports of entry
for completion by USA and Overseas visitors to Canada at the end of their trip. The
survey excludes border workers, visitors travelling on military or diplomatic orders, and
students. Questionnaire data are projected to Canada Customs information on total entries
to Canada. For more details of the survey designs, please contact Statistics Canada.
The information provided in this report is based on special tabulations of Statistics Canada
data, using data management principles developed by Research Resolutions & Consulting
Ltd. in conjunction with provincial partners (Alberta Economic Development, Ontario
Ministry of Tourism and Tourism Saskatchewan). The estimates provided herein may
differ from estimates provided by Statistics Canada. For more details about the data
management principles used to produce estimates of tourism in Alberta, please refer to the
Technical Appendix, provided to Alberta Economic Development. This summary report
was prepared by Judy Rogers, Research Resolutions & Consulting Ltd. (Phone: 416 531-
9973; email:
  Sid Nieuwenhuis, Alberta Economic Development, Phone: 780 422-1058; Fax: 780 427-
5926; email:
  Total spending on tourism goods and services in Alberta in 1998 includes money spent in
Alberta locations by people who visited these locations ($3.7 billion) and fares paid and
some other incidental expenditure items by Alberta residents in Alberta to leave the
province ($457 million). According to the International Monetary Fund rules, air carrier
fares for non-domestic visitors who use a domestic carrier are allocated to the country of
the airline's head office. Thus, an additional $42 million for Americans and $138 million
for Overseas visitors who used domestic air carriers to get to Canada, are allocated to
Alberta. These domestic carrier fares for non-residents are not included in the $4.1 billion
in total tourism spending in the province (See Table 81-1 of detailed USA and Overseas
  Includes "Other" spending.
  Activities reported are for the entire trip in Canada and may or may not take place in

Alberta Economic Development

To top