Tourism in canada and its various economic facets

Tourism affects a number of industries. Hotels, travel agencies, airlines
and restaurants are to varying degrees affected by tourism. Thus, tourism is
not just one industry, but an amalgam of several, and the tourism
phenomenon raises a number of questions because of its complexity, its
various ramifications and its scope.
What is the real magnitude of tourism in Canada? What are the total tourism
expenditures in Canada? Is it possible to identify a trend in these
expenditures, inflation-adjusted or otherwise? What proportions of these
expenditures are made by foreign and Canadian visitors? Has the latter
proportion grown or declined in recent years? To what extent does tourism
contribute to the output of goods and services within the overall economy?
How many jobs are generated by tourism activity? What is the inflation rate
for tourism commodities, and is this rate rising faster than for the economy
as a whole? What is tourism’s share in the total revenue from a good or
service? What government revenues are attributable to tourism?
This chapter will attempt to answer these various questions, drawing on
information contained in the Tourism Satellite Account (TSA) and the National
Tourism Indicators (NTI). The analysis will focus on 1997 and 19982
, while
providing a historical perspective.
Before beginning, it is important to identify clearly what we are seeking to
measure. The definition of tourism used in the TSA and the NTI is the one
adopted by the World Tourism Organization and the United Nations Statistical
Commission. It reads as follows: “the activities of persons travelling to and
staying in places outside their usual environment for not more than one
consecutive year for leisure, business and other purposes.” Clearly, this
definition is both broad and general – broad because it includes not only
personal trips but also trips made primarily for business; and general,
because it does not attempt to clarify the concept of usual environment.
Each country is therefore free to use its own criteria in order to arrive at a
practical application and reflect its own particular circumstances. In Canada,
the distance criterion is used. Thus, tourism is generally considered to consist

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