InnFocus Spring 2023

Credit: Destination Vancouver/Kindred & Scout
Second, in Canada and the US, significant numbers of households
have substantial savings in place that were built up over the course of
2020-21. In Canada, for example, “excess” household savings reached
roughly $300 billion as of mid-2021. These larger-than-normal savings
balances will enable many people to spend on travel and other forms
of leisure, even if the overall economy loses steam.
A third important positive is China’s re-opening. Before COVID, up to
150 million Chinese citizens were travelling outside of the country each
year, spending US$250 billion in the process. This business virtually
evaporated over the 2020-22 period. In the next year or two, much of
it should return as tens of millions of Chinese nationals venture abroad
again. Tourism in BC will certainly gain from the revival of Chinese
outbound travel in the second half of 2023 and into 2024.
Finally, the relatively low value of the Canadian dollar when measured
against the US currency as well as the Euro will create favourable
conditions for the Canadian tourism industry. Most forecasters see
the value of the Canadian Loonie staying well below US 80 cents in
2023-24. A competitive exchange rate not only draws in more foreign
visitors—it also means many Canadians will choose to holiday and
host business meetings, events, and conventions at home.
Add it all up, and there are reasons for optimism that the BC tourism
industry is positioned for a continued rebound in activity in 2023-24—
particularly in the case of international visitors. Before COVID disrupted
life and business, tourism reliably ranked in the top 3-4 among all BC
industries, based on the value of annual export earnings. I am confident
tourism will regain that status before mid-decade.
Jock Finlayson is Senior Policy Advisor at the Business Council of BC.
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