The industry is anticipated to benefit from stronger domestic and global economic conditions.
New York, NY (PRWEB) January 10, 2015
The Convention and Visitors Bureau industry markets and promotes local communities to leisure and business travelers. Industry operators assist organizations in finding facilities and booking spaces for various events, such as conventions, expositions, conferences and meetings. In addition, participants provide information and deals on local attractions and accommodations. “Many convention and visitor bureaus are funded in part by government contributions and membership fees,” according to IBISWorld Industry Analyst Leah Goddard. Consequently, the industry has a low level of profitability, as revenue is primarily used to cover operating expenses rather than generate large margins. Over the five years to 2014, industry revenue is estimated to marginally rise at an annualized rate of 0.6%, as a strong Canadian dollar and weak economic conditions worldwide limited demand for convention and visitor bureaus.
The industry has had to adapt to a number of trends over the period. Daily deal sites, such as Groupon, and flash sale sites have emerged to offer consumers less expensive travel options, increasing competition for convention and visitor bureaus. Moreover, peer-to-peer accommodation networks, such as Airbnb, have become more popular alternatives to traditional lodging options, such as those promoted by industry operators. “The average age of travellers in Canada is decreasing, and younger, tech-savvy consumers are using the internet to plan their travel arrangements,” says Goddard. In response to these trends, industry participants have created easy-to-use websites and moved most of their services online. As a result, convention and visitor bureaus have been able to capitalize on increases in consumer spending, corporate profit and inbound international travel in 2014, leading revenue to rise 1.8% to $254.8 million.
Although external competition will continue to grow in coming years, the industry is anticipated to benefit from stronger domestic and global economic conditions. As disposable incomes increase, consumers will be able to spend more on traveling and attending events, boosting demand for industry services. Furthermore, rising corporate profit will enable businesses to book events at convention centres and send employees to attend them. While inbound international travel is forecast to decrease in coming years, rising domestic travel will offset some of this decline in demand. For these reasons, industry revenue is projected to grow over the five years to 2019.
For more information, visit IBISWorld’s Convention and Visitor Bureaus in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry is comprised of convention and visitor bureaus, which market and promote communities and local facilities to business and leisure travelers; assist organizations in locating meeting and convention sites; provide travel information on an area's attractions and accommodations; and organize group tours of local attractions.
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