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Hotel Association of Canada

Hotel data shows need for government investment in tourism promotion

The Hotel Association of Canada (HAC) released its annual Economic Impact Analysis summarizing…

The Hotel Association of Canada (HAC) released its annual Economic Impact Analysis summarizing the state of the Canadian lodging industry.



The study shows that the Canadian lodging industry generated revenues of $12.6 billion in 2004 and that the “value-added” generated was $11.4 billion. About 270,000 people were employed directly or indirectly in the lodging industry on a full-time, part-time or seasonal basis with total salaries and wages estimated at $6 billion. The revenues generated by the industry for all levels of government were estimated at $4.9 billion.



“The lodging industry in Canada is suffering from reduced travel, particularly from the United States,” stated HAC PresidentTony Pollard. “We are seeking an immediate investment by the Federal government of $100 million which would provide a return on investment (ROI) to the government of $620 million. The Federal government will only stand to benefit from this; in 2004 they received $2.2 billion in taxes from the Canadian lodging industry.”



The release of the Economic Impact data coincides with the HAC Annual Government Relations Day being held in Ottawa on November 23rd. Hoteliers from across the country will be converging on Parliament Hill to discuss travel and tourism related issues with Ministers, MPs and Officials.



“On March 31 of this year the Prime Minister made a commitment to HAC that cabinet would discuss new investment in the Canadian Tourism Commission (CTC) upon receiving a business case. The business case has since been provided; the industry now wants to know when a decision on this new investment will be made,” said Pollard.



The 2004 Economic Impact Analysis was undertaking by PKF Consulting for the Hotel Association of Canada. PKF forecasts that by year-end 2005 Canadian hotels would average 64% in occupancy, $119 in average daily rate and $76 in revenue per available room. For 2006, PKF projects 65% in occupancy, $122 in average daily rate and $79 in revenue per available room.

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