Tourism in Canada continues to rebound from the COVID-19 pandemic. Canadians reported taking 90.8 million trips within Canada in the third quarter of 2023, just shy of the high of 91.6 million in the third quarter of 2019, pre-pandemic. Canada also welcomed 10.5 million non-resident visitors in the third quarter of 2023, representing 83.9% of the number of trips made in the same quarter of 2019.
In the third quarter of 2023 (on a seasonally adjusted basis), gross domestic product (GDP) attributable to tourism reached $8.7 billion, roughly three times higher than the record low observed in the second quarter of 2020 ($3.0 billion), though short of the all-time high of $10.7 billion reached in the fourth quarter of 2019.
These national numbers appear to be good indicators for Canada’s smallest province, which looks to build on its own recovery.
Famous for its picturesque beaches and trails and a wide variety of sightseeing destinations (and amazing seafood!), Prince Edward Island (P.E.I.) has long been a top tourist destination for Canadians and international visitors alike.
The island’s economy is boosted when tourism thrives; in fact, recent analysis showed that the accommodation and food services sector accounted for one-fifth (20.4%) of gross job losses in P.E.I. in 2020, amid the pandemic’s onset.
Conversely, the sector recorded a 26.2% increase in value-added from 2021 to 2022, the largest contribution to the 3.7% uptick in the GDP of services-producing industries in the province.
Will the recovery years of 2022 and 2023 be hard to beat? Let’s have a look at some key numbers.
Spending by non-resident visitors hits a high in 2023
Non-resident visitors travelling in Canada spent $91.1 million in P.E.I. in the third quarter of 2023. This is the highest number on record since we started tracking these data in 2018 and surpassing the $87.0 million spent in the same quarter of 2019.
That record high is up from the third quarters of 2022 ($59.3 million) and 2021 ($14.6 million).
Record year for food services and drinking places
Though Islanders have enjoyed a return to their favourite local spots following pandemic-related closures and restrictions, tourism has factored into some higher numbers as well.
On an unadjusted basis, food services and drinking places in P.E.I. posted a record $50.9 million in receipts in July 2023, the highest monthly figure on record for the subsector (which includes all types of restaurants and bars) since we started tracking the current data series in 1998.
The next-highest receipts were recorded in August 2023 ($48.5 million), followed by July 2022 ($46.1 million) and August 2022 ($45.1 million). August 2021 ($38.3 million) marked the first month to eclipse the pre-pandemic high of $38.0 million reached in August 2019.
Hard to find a room?
The accommodation services subsector, which includes all types of short-term lodging, reported an all-time high of $213.8 million in operating revenue in P.E.I. in 2022, up from $123.6 million in 2021 and the previous high of $171.6 million in 2019.
Although the $165.6 million in operating expenses in 2022 was also a high mark, the subsector reported a profit margin of 22.6%, the highest on record.
Inflation as a factor
As the pandemic recovery took hold in 2022 and drove up consumer demand, P.E.I.’s inflation rate (+8.9%) outpaced Canada’s (+6.8%) on an annual average basis.
Conversely, inflation on the island slowed to 2.9% in 2023, while the nationwide rate was 3.9%. It was the lowest rate among provinces and the sharpest deceleration from 2022.
In a few key tourism categories, prices for food purchased from P.E.I. restaurants increased 6.7% in 2022 and 7.6% in 2023. Prices for traveller accommodation on the island rose 10.6% in 2022, followed by a more modest 9.8% bump in 2023.
Prices for passenger vehicle rental increased 11.8% in 2022, followed by a marginal increase in 2023 (+1.1%).
Looking ahead
Stay tuned: Over the summer months, we will be featuring summer vacation spots across more Canadian regions.
Accommodation and food services operating statistics for 2023 will be released in early 2025.
Visit Tourism Prince Edward Island for more information about what to do and where to stay. Enjoy your visit!
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Contact information
For more information, contact the Statistical Information Service (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).