Rising incomes will encourage Canadians to travel more, benefiting the industry.
New York, NY (PRWEB) November 30, 2014
The Tour Operators industry has performed well over the past five years. Industry revenue fell an estimated 0.5% in 2009 as high unemployment, low per capita disposable income and declining consumer confidence discouraged Canadians from making discretionary purchases, including on tour packages. “However, as the economy grew in subsequent years and consumer confidence and financial stability improved, Canadians increased their spending on domestic and international travel, increasing demand for industry services,” according to IBISWorld Industry Analyst Zachary Harris. In addition, global economic growth and an expansion in the size of the global middle class over the past five years resulted in an increase in the number of foreign visitors to Canada, many of whom signed up for industry tour packages as a convenient means of exploring Canadian tourist attractions. As a result, industry revenue is forecast to grow at an annualized rate of 2.7% over the five years to 2014. In 2014, industry revenue is expected to expand 1.8% to reach $1.2 billion.
The Tour Operators industry is anticipated to continue to grow over the five years to 2019, albeit at a slower rate than over the past five years. Despite an anticipated decline in the amount of leisure time available to Canadians, growing per capita disposable income and consumer confidence are projected to encourage Canadians to travel more both domestically and internationally. However, due to competition from other burgeoning tourism countries, such as Thailand and Mexico, the number of foreign visitors to Canada is forecast to decline over the five years to 2019, negatively affecting demand for industry services. “In addition, other developments that are already threatening the industry are expected to further hinder industry growth,” says Harris. For example, the increasing ease of finding travel information online, as well as the proliferation of mobile apps that help tourists travel are likely to reduce the appeal of industry services to many consumers, reducing industry demand. Moreover, geopolitical events and health scares, such as the ongoing Ebola crisis in West Africa, have the potential of reducing Canadians' desire to travel, which could potentially also reduce demand for industry services. Nonetheless, tour packages are expected to continue to appeal to a large number of consumers due to their convenience and affordability.
For more information, visit IBISWorld’s Tour Operators in Canada industry report page.
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IBISWorld industry Report Key Topics
Businesses in this industry primarily arrange, market and conduct tours, including wholesale tours, of cities, museums, natural attractions and other places of interest. The industry excludes companies that primarily provide travel information on an area's attractions (see IBISWorld report 56159), as well as travel agencies (see IBISWorld report 56151).
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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