Visa Report Indicates Visitor Card Spending Up in Canada as International Tourism Continues to Support Canada’s Economy
International Tourists’ Spending in Canada Rose Three Percent in 2008; Trend Indicates Tourism Opportunity Around 2010 Vancouver Olympics
San Francisco, CA.- Despite pressures on the global economy, international tourists in Canada spent US$300 million¹ more with their Visa cards in 2008 than they did in 2007, according to data released today by Visa Inc. (NYSE:V).
Last year, international visitors to Canada spent more than $9 billion on their Visa-branded payment cards, contributing to Canada’s tourism economy, which represents approximately two percent of Canada’s overall GDP.² Visa card spending by international visitors in Canada increased from US$8.7 billion in 2007, with U.S. cardholders contributing more than half of the total. Visitors from Western Europe, Asia and Australia accounted for an additional 23 percent of Visa card spending.
“Tourism to Canada is alive and well for Visa cardholders, and is an increasingly appealing and cost-effective destination for U.S. travelers, as they accounted for the majority of tourism spending on Visa cards in 2008³,” said Tim Wilson, Head of Visa Canada. “As people all over the world come to use their Visa cards more frequently for everyday purchases, they are keeping this habit while on vacation. It’s another way that Visa is better money for travelers and for those who make their living in the tourism industry.”
Canada’s popularity as a tourism destination stretches to all corners of the world: 2008 saw increased Visa card spending by visitors from Eastern Europe, the Caribbean, the Middle East and Africa. This year-over-year growth underscores the growing stature of Canada as a tourism destination for world travelers. The survey found that international interest in visiting Canada in the future is high, with nearly three out of four survey respondents reporting they are likely to visit Canada in the future. The strongest interest comes from Mexico, the U.S., China and Japan.
The Olympic Opportunity
With Canada hosting the 2010 Olympic Winter Games in Vancouver, British Columbia, the tourism industry is looking for an even bigger boost in revenues. According to the Visa international tourism survey, one in four respondents said they are likely to attend the Vancouver Games and the majority of those visitors also plan to visit other parts of Canada. International respondents reporting the strongest likelihood of attending the Vancouver Games originated from Brazil (57 percent), China (52 percent) and Mexico (34 percent).
“The Vancouver Games provide a strong opportunity to elevate Canada’s global visibility and attract increased tourism revenues, as we saw with the recent Beijing Games,” Wilson said.
Where Visitors Come From
Visitors from the United States continue to be the largest contributors to tourism revenues. According to the Visa tourism survey, 60 percent of U.S. respondents have visited Canada at least once, compared to 19 percent of all respondents. In 2008, U.S. visitors spent $5.47 billion on Visa cards while visiting Canada. Other top contributors to Canada inbound tourism spending in 2008 include: United Kingdom ($603 million); France ($351 million); Australia ($223 million); and Japan ($204 million).
Where are international tourists spending their money while in Canada? General retail purchases, such as clothing and food, represented 41 percent of Visa transactions by international travelers visiting Canada in 2008, totaling more than $3.7 billion, an increase of more than seven percent from the previous year. Other major segments include lodging ($1.1 billion), airlines ($628 million) and restaurants ($467 million).
Canadians’ Tourism Intentions Remain Strong
Canadian tourism is a two-way street. Canadian respondents show strong propensity for international travel over the coming two years - although they report they will take a more frugal approach to their travel plans.
The Visa international tourism survey, which polled payment cardholders in Canada and ten other nations who have traveled internationally in the past two years, found that a majority of respondents (64 percent) are equally or more willing to travel compared with one year ago. In fact, 68 percent will likely plan multiple international trips over the next 24 months. Top anticipated trip destinations among survey respondents likely to travel internationally in the next two years include: United States (65 percent); Caribbean (30 percent); United Kingdom (21 percent); Mexico (21 percent); and France (12 percent).
However, Canadian travelers are looking for ways to tighten their belt while traveling. Fifty-one percent report they will plan to travel off-peak for lower prices, 34 percent will travel to countries where the cost of visiting is less. In addition, 92 percent report their travel in the next two years will likely be basic/standard cost or economy/lower class travel.
Electronic Payment Preferred for International Travel
Survey respondents expressed preference to use credit cards while traveling abroad in the next year. Sixty-two percent of Canadian respondents prefer to use a credit card, while just 16 prefer to pay with cash and 11 percent use travelers checks. Preferred payment methods were selected largely based on three factors: convenience (76 percent), ease of accessing funds (51 percent) and security (49 percent).
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