A message from Mark Parsons at ATB Economics:
Tourism sometimes flies under the radar. Not sure why. It's a big economic player, with visitor spending in Alberta totalling $12.7 billion in 2023. The more incremental piece from out-of-province and international tourists was $5.9 billion.
Amid current trade turmoil, the outlook for tourism looks good. The industry has taken off following COVID disruptions, with Alberta far outpacing the other provinces in the post-COVID rebound in foreign visitor spending. This sector has more room to run, given that the number of overseas visitors is still below pre-COVID levels.
The low Canadian dollar will attract U.S. visitors and encourage more Canadians to travel within the country. Amid tariff threats, there are reports of Canadians postponing U.S. vacations, which could lead to more travel within Canada.
To be sure, there are still challenges. Jasper is recovering following the wildfires, and it will take time to get back to normal. The community is rallying with plans for a "business village" this summer for damaged businesses. Another challenge is labour shortages — the food and accommodation sector in Alberta has the highest job vacancy rate. The industry has also faced higher costs for everything from food to energy, squeezing margins. Finally, there are capacity constraints: for example, the Rockies are a popular place but they operate at capacity during the busy summer months.
Learn more in this edition of The Seven.
For more number-crunching on Alberta's economy, visit The Twenty-Four Seven by ATB.