Tourism spending has exceeded pre-COVID-19 pandemic levels for the second year in a row — again, though, without a full return of visitors.
Travel Manitoba and Tourism Economics shared its 2023 information at the Crown corporation’s annual year in review Wednesday.
The province drew $1.82 billion in tourism dollars last year, according to Statistics Canada data Travel Manitoba highlighted. It far surpasses the pre-pandemic record of $1.64 billion and beat last year’s high of $1.804 billion.
Tourism spending has increased, but hasn’t rebounded as high as Travel Manitoba was anticipating. The organization launched its “Canada’s Heart is Calling” campaign in 2023. (Travel Manitoba)
Still, it’s “not as significant as what we had originally forecasted,” said Jackie Tenuta, Travel Manitoba vice-president of destination management.
She pointed to economic challenges, which were later described as including interest rate hikes and higher national unemployment. The final tourism spend is a positive, Tenuta noted.
Inflation skews the monetary comparisons, Tourism Economics’ senior economist noted.
A pre-pandemic 2019 reigns champion over the number of visits taken within Manitoba. Then, more than 10.5 million people travelled through the keystone province.
Last year’s forecast visitation lands at 10.3 million people — the first time Manitoba has exceeded the 10-million marker since the pandemic.
A majority of tourists — 87 per cent — were Manitobans. And Manitobans spend less than interprovincial visitors and those from other countries, Tenuta noted. The average Manitoban spent $151 per trip.
Despite accounting for 0.45 per cent of visitors, overseas tourists covered four per cent of overall spending. The average person spent $2,065 while in Manitoba.
Canadians residing outside Manitoba made up roughly 10 per cent of overall tourism visits and 26 per cent of spending; Americans covered 2.4 per cent of visits and six per cent of spending.
Growth in Manitoba hotel occupancy and demand decreased last year, departing from national trends. Demand dropped five per cent year-over-year, and occupancy declined 4.1 per cent. Nationally, demand and occupancy grew minimally, at 0.5 per cent and 0.2 per cent, respectively.
Meanwhile, Manitoba’s average room rental rate increased 2.8 per cent year-over-year. (Overall hotel revenue did not — it dropped 2.4 per cent.)
Revenue managers in hotels may have become “more confident” in maintaining prices since the COVID-19 pandemic, said Daryl Cronk, Tourism Economics senior economist.
“I think one of the lessons from the pandemic is that there’s not a lot you can do to stimulate significant demand,” he continued. “If people are going to travel, they will, and if they’re not going to travel, saving a little bit on a hotel probably won’t trigger it.”
But also, more family and friends of Manitobans had been visiting the province, Tenuta added.
Manitobans were leaving the province more last year than in prior years; as such, less Manitobans were spending nights in hotel rooms, she noted.
Tourism Economics projects 10.6 million tourists will cross through Manitoba this year — a slight increase from 10.5 million in 2019. Visits could reach nearly 12.8 million by 2031, according to the business.
Gabrielle Piché
Reporter
Gabrielle Piché reports on business for the Free Press. She interned at the Free Press and worked for its sister outlet, Canstar Community News, before entering the business beat in 2021. Read more about Gabrielle.
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