For the week ending with 21 November, Nova Scotia recorded the highest occupancy level (33.4%) among the provinces.
To see the full summary including ADR and RevPar, click here.
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In comparison with the week of 1-7 September 2019, the industry reported the following:
- Occupancy: -36.5% to 41.9%
- Average daily rate (ADR): -26.7% to CAD128.13
- Revenue per available room (RevPAR): -53.4% to CAD53.65
Occupancy for previous weeks came in at 42.1%, 42.9% and 41.8%, respectively
For the week ending with 5 September, two provinces reached a 50% occupancy level: Prince Edward Island (53.2%) and British Columbia (52.3%).
Ottawa (46.2%) was the only major market at or above the 40% mark.
The lowest occupancy among provinces was reported in Quebec (34.5%). At the market level, the lowest occupancy was reported in Montreal (24.5%).
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Tourism employment dropped by 881,700 jobs through March and April. The sector has now gained back 572,200 of those lost jobs. But summer is the height of Canada’s tourism season, and on a year-over-year basis tourism employed 463,400 fewer individuals than it did in August 2019.
Highlights:
- Tourism added 54,300 jobs in August — one quarter of Canada’s seasonally unadjusted job growth.
- Ontario was responsible for the majority of employment growth, adding 41,300 jobs.
- The tourism unemployment rate has fallen to 17.1%, which remains 6.1 percentage points higher than the overall unemployment rate.
- On a year-over-year basis, seasonally unadjusted employment across all Canadian industries was down 5.3% from August 2019. In comparison, tourism employment was down 21.2% from the same month a year ago.
Please note: To allow comparisons with tourism sector data, which sees significant employment fluctuations over the year, we use seasonally unadjusted data for both tourism employment and overall employment.
Tourism Employment Rate
In the tourism sector, the seasonally unadjusted labour force survey data shows that the number of employed individuals grew by 54,300—an increase of 3.2%. Most of the added employment occurred in Ontario, which added 41,300 jobs, 76.1% of the total employment gain. This was driven by the reopening of businesses in the Greater Toronto Area and Peel region, which did not enter Stage 3 of Ontario’s reopening plan until the end of July.
Over four months of increases, tourism has gained 572,200 jobs. However, tourism employment is still below pre-COVID levels and well below the level of employment seen in August 2019. Employment levels were 15.2% below February 2020 and 21.2% lower than August 2019.
Last August, tourism employed over 2.2 million Canadians. This August, just over 1.7 million Canadians worked in the tourism sector.
In August, employment (unadjusted for seasonality) across the entire Canadian economy increased by 219,900 jobs. The increase in tourism employment accounted for 24.7% of that overall increase.
]]>Their website is a great resource on the unfolding economic impacts of COVID-19 on Atlantic Canada. Follow on Twitter and LinkedIn for daily updates.
Summary
- Worst of the job losses are behind us
- Atlantic exports down 44% in April from 2019
- Canada Emergency Response Benefit pros and cons
- COVID-19 Indigenous support programs inadequate
- Atlantic business responses to COVID-19
- Atlantic retail sales down 9%, online purchases jump
- Atlantic provinces reopening, still concerns in key export markets
Today, Tiff Macklem assumes his role as the Bank of Canada’s tenth Governor. In his first interest rate announcement, the Bank of Canada maintained its target for the overnight rate at the effective lower bound of 0.25 percent. The Bank Rate is correspondingly 0.5 per cent and the deposit rate is 0.25 per cent.
To cushion the negative impacts of COVID-19 shock in the economy, advanced economies have introduced an unprecedented amount of economic stimulus and lowered interest rates. These measures seem to have softened the impacts of economic shutdowns. The Bank of Canada notes that financial conditions have improved, and commodity prices have increased in recent weeks.
The Bank of Canada’s recent actions in response to the economic shock from COVID-19 included lowering the target for the overnight rate 150 basis points and conducting lending operations to financial institutions and asset purchases in core funding markets of around $200 billion. The Bank of Canada notes that recent data confirms that the Bank’s programs to improve market function are working as intended. As a result, the Bank will be reducing the frequency of its term repo operations to once a week, and its program to purchase bankers’ acceptances to bi-weekly operations. other programs to purchase federal, provincial, and corporate debt are continuing at their present frequency and scope.
In Canada, the real GDP in the first quarter of 2020 was 2.1 per cent lower than the fourth quarter of 2019. The Bank notes that this level of GDP is in the middle of the Bank’s April monitoring range and reflects the combined impact of falling oil prices and widespread shutdowns. The Bank of Canada projects GDP level to further decline by 10-20 per cent due to continued lower consumption and investment.
CPI inflation has decreased to near zero in line with the projections provided in the April Monetary Policy Report (MPR). The decline in inflation was primarily due to lower gasoline prices. The Bank expects temporary factors to keep CPI inflation below the target band in the near term.
With global economies turning their focus to reopening, uncertainty remains on how the recovery will unfold nationally and globally. The Bank expects the Canadian economy to resume growth in the third quarter of 2020 supported by household consumption.
As market conditions improve, the Bank’s focus will shift to supporting growth in employment and output. The Bank maintains its commitment to continue large-scale asset purchases until the economic recovery is well underway. Any further policy actions would be calibrated to provide the necessary degree of monetary policy accommodation required to achieve the inflation target.
The next scheduled date for announcing the overnight rate target is July 15, 2020. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR at the same time.
Bank of Canada: Rate announcement
CANADA BUSINESS SECTOR LABOUR PRODUCTIVITY, Q1 2020
During the COVID-19 pandemic, comparisons of year-to-date averages and sums do not show Nova Scotia’s rapidly-changing economic situation. The DailyStats will focus on year-over-year comparisons, comparing one month with the same month in the prior year. Where possible the DailyStats will make comparisons of seasonally adjusted data from the pre-COVID-19 period (January and February 2020) with the period during which COVID-19 measures were in place from March 2020 onwards.
In 2020Q1, Labour productivity of Canadian businesses increased 3.4 per cent after a decline of 0.1 per cent in 2019Q4. In 2020Q1, Labour productivity of Canadian businesses year-over-year growth increased 3.6 per cent over 2019Q1. In 2020Q1, Real gross domestic product (GDP) of businesses declined 2.6 per cent over 2019Q4, with hours worked down 5.8 per cent. Total compensation per hour worked was up 4.5 per cent over 2019Q4
Unit labour costs increased 1.1 per cent in 2020Q1.
Measured in US dollars, Canada’s unit labour costs declined 0.8 per cent in 2020Q1, following a 1.0 per cent increase in 2019Q4. Unit labour costs in US dollars have increased 2.7 per cent since Q1 2019.
Note: Labour productivity, GDP and, unit labour costs cover the business sector only. Labour productivity is a measure of real GDP per hour worked. Unit labour cost is defined as the cost of workers’ wages and benefits per unit of real GDP.
Statistics Canada. Table 36-10-0206-01 Indexes of business sector labour productivity, unit labour cost and related variables
EU AND EURO AREA UNEMPLOYMENT RATE, APRIL 2020
Eurostat has reported that April 2020 was the second month when COVID-19 containment measures were implemented by Member States, the unemployment rate in the Euro Area was 7.3 per cent in April, up from 7.1 per cent in March 2020 and down from 7.6 per cent in April 2019.
For the broader European Union 27, the unemployment rate was at 6.6 per cent in April 2020, up from 6.4 per cent in March 2020 and down from 6.8 per cent in April 2019.
Among major European economies, the unemployment rate was highest in Greece (16.1 per cent in Feb), Spain (14.8 per cent), Latvia (9.0 per cent), Cyprus (8.9 per cent), France (8.7 per cent), and Lithuania (8.6 per cent). Unemployment rates were lowest in Czechia (2.1 per cent) and Poland (2.9 per cent).
Source: Eurostat. Unemployment News Release, time series data for unemployment rates, latest unemployment rates by member country
Statistics Canada. Table 14-10-0287-01 Labour force characteristics, monthly, seasonally adjusted and trend-cycle
STUDY: THE DISTRIBUTION OF TEMPORARY FOREIGN WORKERS ACROSS INDUSTRIES IN CANADA
In response to the COVID-19 pandemic, Statistics Canada completed a study on the distribution of temporary foreign workers (TFWs) across industries in Canada. Due to measures taken to contain the spread of the virus, the availability of new TFWs may be reduced or delayed in 2020.
TFWs have played an increasingly important role in the Canadian labour market in recent years with almost 470,000 work permits in 2019, up from 390,000 in 2018. Although TFWs account for a small share of the total workforce, they are particularly important in agriculture, forestry, fishing, and hunting, accounting for 15.5 per cent of employment in 2017. Among services-producing sectors, the highest proportion of TFWs was observed in accommodation and food services at 7.2 per cent.
Crop production had the highest proportion of TFWs in 2017, at 27.4 per cent nationwide. Provincially, TFWs accounted for 41.6 per cent of agricultural workers in Ontario, and over 30 per cent of agricultural workers in Quebec, British Columbia and Nova Scotia during the year. Among sectors that continue to operate during the COVID-19 pandemic, relatively high 2017 TFW employment was observed in private household services (9.8 per cent), gasoline stations (8 per cent), warehousing and storage (4.3 per cent), and food manufacturing (3.4 per cent).
When looking at firm level data, 17 per cent of employers in private household services (including cooks, maids, gardeners and nannies), and approximately 10 per cent of firms in crop production, gasoline stations, and food services and drinking places, had at least 30 per cent of their employees as TFWs in 2017.
Source: Statistics Canada. Study: The distribution of temporary foreign workers across industries in Canada
ELECTRIC POWER, MARCH 2020
During the COVID-19 pandemic, the DailyStats will examine a broader range of indicators to identify signals of rapidly changing economic activity.
Electric power consumption (here shown as electric power available for use within a geographic area) aligns with broad economic activity. There are distinct seasonal patterns to electric power volumes with peaks for most provinces in January.
In March 2020, there was a total of 966,928 Megawatt hours of electric power available for use in Nova Scotia. This was a 4.6 per cent decline compared to March 2019, but there were also fewer heating-degree-days (requiring electricity for heating purposes) in March 2020.
Compared with the usual January peak, Nova Scotia’s electric power available for use was down by 13.0 per cent in March 2020. Electric power available for use typically declines in Nova Scotia during February and March. This year’s decline is consistent with declines observed in 2018 and 2019.
Source: Statistics Canada. Table 25-10-0016-01 Electric power generation, monthly receipts, deliveries and availability; Environment and Climate Change Canada Monthly Climate Summaries
STATISTICS CANADA OTHER RELEASES
Weekly aircraft movements, May 16 to 22, 2020
Canadian foreign post indexes, April and May 2020
Canadian Health Measures Survey
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STR is an international hospitality research firm that secures and analyzes weekly accommodation data reports from around the globe. TIANS is sharing their weekly webinar updates and reports for interested Industry members.
Upcoming Webinar: April 9, 2020
In the coming months, more than 1.3 million jobs in the accommodation and food services sector will be affected by the COVID-19 outbreak in Canada. This represents approximately 7 per cent of all Canadian jobs. However, the economic impact on the sector will be felt unevenly across the country because economic regions are specialized in different industries.
Unlike other sectors of the economy, the lost demand for the accommodation and food services sector is largely irrecoverable. For example, manufactured goods can be inventoried for a future purchase, but empty hotel rooms or meals not served cannot be repurposed for later use.
]]>On March 20, Destination Canada (DC) hosted a webinar to provide members of the Canadian tourism industry with an update on the organization’s approach amid the COVID-19 situation, as well as information on available federal-support initiatives.
“We know our sector is mostly small-l and medium-sized businesses who will be especially hard hit by this crisis and are feeling it now. But the tourism sector is inherently one of relationship building, which puts us in a good position when it’s time to rebuild. We can go so much further together if we tackle this as Team Canada, so let’s get to work,” David Robinson, interim president and CEO, DC said to open the webinar.
The webinar featured a number of panelists who shared insights from their organizations, including Pierre Cléroux, vice-president of Research and Chief Economist, Business Development Bank of Canada (BDC); Charlotte Bell, president and CEO, Tourism Industry Association of Canada (TIAC); Philip Mondor, president and CEO of Tourism HR Canada; Elisabeth Lacoursière, director of Outreach and Marketing for Parks Canada; and Gloria Loree, SVP Marketing Strategy and Chief Marketing Officer, DC.
Cléroux highlighted new measures put in place by BDC to provide relief for entrepreneurs, but explained that those who don’t deal directly with the BDC should contact their financial institution as a first step. “They’re going to assess your situation and your need and they are going to contact us or other organizations like BDC to find the best solution and the best tools for you,” he said.
“The Team Canada approach is extremely important at this difficult time,” said Bell. “We know that the industry is really struggling and we all want to be there for all of you. So, [TIAC is] continuing to work on your behalf, along with all of our other national partners and the provincial and territorial associations…Our focus [has been] on immediate government support and acting quite quickly. We’re reporting to government officials on industry issues in real time and also reporting on support measures to the industry in real time.”
Bell also noted that TIAC has been keeping its site up to date with information and resources for the industry.
Tourism HR Canada’s Mondor spoke about the impacts on workers and highlighted the support measures being put in place by the federal government and the specifics of each. A Government of Canada web page dedicated to resources for Canadian businesses has also been set up.
“Our initial forecast suggests at least 50 per cent of [the industry’s] workers will be impacted and that could account for more than a million individuals,” said Mondor. “As of 11:30 today, the Prime Minister mentioned that [the government has] received over 500,000 EI applications this week, compared to 27,000 last week.”
Mondor highlighted measures in the works, such as the Emergency Care Benefit, Emergency Support Benefit, Temporary Business Wage Subsidy and the temporary expansion of the Work Sharing Program.
The Temporary Business Wage Subsidy will provide small businesses with a 10-per-cent wage subsidy (maximum $1,375/employee and $25,000/employer) and can be applied for through the Canadian Revenue Agency (CRA). Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration.
Applications for the Emergency Care Benefit and Emergency Support Benefit are expected to be available in April.
“A number of the national associations, including TIAC and the Canadian Federation of Independent Business, have been recommending or proposing that the wage subsidy be increased,” said Mondor. “There’s a fair amount of effort being put into having the government look at the possibility of increases there.”
“We are we are joining together, you know, to really implore government to take additional steps and take them swiftly to assist the tourism industry in particular,” agreed Bell. “This particular initiative is not directly aimed at tourism alone but it’s one of the things that we have been advocating quite strongly.”
Bell also noted that TIAC is launching a campaign (expected to go live on March 23) featuring a draft letter that can be sent to members of parliament asking for increased support for the tourism sector. “We’re also working with other national organizations in hospitality and tourism, including Restaurants Canada and the Hotel Association of Canada,” said Bell. “We are joining together to really implore government to take additional steps — and take them swiftly — to assist the tourism industry.”
Loree noted that DC, as well as its partners have stopped all paid media marketing. “We continue to post anything that we know is helpful or useful, [as well as] work with our partners to understand that the most important thing we can be doing right now is protecting budget and resources [and] redeploying the teams working on plans that are going to help us in rebuilding and recovering in the future,” she explained. “That includes working with our partners to understand what we would be doing and how we would refocus the existing plans that we have.”
“We’re tracking real time the impacts… as well as working with our research and our media monitoring team to understand what is what’s being said in the communities — what are global travellers saying, where’s the sentiment at.”
DC has been pulling research from Oxford Economics and McKinsey in order to understand the impact of COVID-19. “We’re all trying to understand impact as a way of modelling the recovery and next steps,” Loree explained. “We’re going to be sharing that information with our federal colleagues and our partners across the country in order to understand when it is the right time to start launching or rebuilding certain activities.”
The panelists addressed a number of emailed questions at the end of the webinar, but didn’t get a chance to answer many others. Robinson indicated that DC will seek input from appropriate partners and share the responses on the DC website in the near future. A recording of the webinar will also be made available.
Robinson also indicated that DC will hold another webinar in the near future. Details for this event will be announced in DC’s newsletter.
“I will take the opportunity to encourage you to stay very close contact with your local tourism authorities, including the destinations and provincial marketing organizations that we’ve worked so closely with,” Robinson added in closing. “Please check our website regularly. This is a busy and critical time for everyone.”
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Click here to view our webinar from March 18, 2020.
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