This text is part of the special Business Tourism section
Return to pre-pandemic normal is expected for 2024 within the tourism industry, calculates Destination Canada. The state company however, wishes to address challenges associated with labor, infrastructure and transportation.
“The recovery in tourism is surprising, it is very strong,” comments Michel Dubreuil, senior research manager at Destination Canada. “I think tourism is very resilient. There is a very strong demand from travelers who recommend experiences when purchasing goods. There were savings accumulated during the pandemic and which we are still benefiting from now. We are very optimistic for the future. »
In fact, the annual growth of tourism in the country, estimated at 5.8%, has exceeded the growth of the Canadian economy, estimated at 4.5%, according to a recent report from Destination Canada. According to the latter’s forecasts, the leisure and business tourism industry could generate profits of 140 billion dollars by 2030. If the industry succeeds in transforming itself, it could even rake in 20 billion more in during the same period.
But to do this, three main obstacles will have to be faced: the shortage of labor and rooms, as well as the lack of transport connectivity. The state-owned company estimates, for example, that there will be a shortage of nearly 20,000 hotel rooms as well as 12% of the workforce needed to meet expected demand by 2030.
To face the challenges, Destination Canada proposes to develop an attraction for experiences spread across the territory, all year round. This would notably reduce the shortage of rooms in the summer season and improve the working conditions of employees, believes Mr. Dubreuil. To promote sustainable development, initiatives such as a corridor of UNESCO sites in the Maritimes region are also being developed.
Promote business tourism
When it comes to tourism, Quebec is well positioned compared to other provinces, in particular because of the attractiveness of the city of Montreal for holding international events, estimates Gilber Paquette, general director of Tourisme d’affaires Québec.
In La Belle Province, business tourism revenues reached a peak of $2 billion in 2019. Quebec hopes to increase this amount to $2.5 billion by 2027. To achieve this objective, the ministry of Tourism has also launched a strategic action plan for 2023–2027. And last November, the main players in business tourism gathered at the Palais des congrès de Montréal for the first specialized conference in the field. “All the players in the ecosystem will put their shoulder to the wheel,” predicts Gilber Paquette.
The industry must, however, compensate with significant inflation, which has sometimes exceeded 20% in the sector, calculates Gilber Paquette. “The demand was far greater than the supply of meeting rooms, there is inflation in the cost of food. And with the shortage, we have to increase the cost of labor,” he explains. On the other hand, the labor shortage is disappearing in several accommodation establishments, the number of vacant positions being much lower than at the same time last year, continues Mr. Paquette.
To promote business tourism in the province, several strategies are on the table, such as the influence of regions for specific themes, such as marine sciences in Bas-Saint-Laurent or the mining industry on the Côte- North. Data collection is planned to better analyze the performance of adopted strategies. “We have identified 15 professions linked to the sector; we will have to make them known and promote them,” specifies Mr. Paquette. Strategies will also be put in place to encourage business tourists to extend their stay for leisure in various regions.
After two years of frenzy to make up for events canceled during the pandemic, the year 2024 could be “a very good year, but with less pressure”, predicts Gilber Paquette with optimism.
This content was produced by the Special Publications team at Duty, relating to marketing. The writing of the Duty did not take part.