International tourist visits to B.C. slipped mildly in June but not enough to dampen the spirits of the sector or the positive momentum generated over the past year. Total June visits edged down 0.7% to a seasonally adjusted 387,690 entries as the number of U.S. visitors fell 1% and overseas visits held steady.
Despite the decline, the tourist uptrend remained intact with the inflow up 4.3% from the same month in 2013. Ignoring the Olympics spike in 2010, visits are approaching levels last seen in 2008. While U.S. visits continue to creep higher on strengthening economic growth, the most significant gains have come from overseas visitors. Inflows from the U.S. remain well below mid-decade highs, but record numbers of overseas visitors have descended on the province.
Through mid-year, overall tourist visits are up more than 5% and are led by a 9% gain in overseas visits. In contrast, U.S. tourist entries to B.C. were up by a modest 3.4%. Gains have propelled hotel occupancy rates higher and have likely contributed to the near 9% lift in provincial restaurant food and beverage sales this year.
Continuing recoveries in the broader economy and favourable Canadian dollar are likely the key drivers of higher travel demand. Meanwhile, B.C. – and Vancouver in particular, given its role as a port of call for cruise ships and overall international reputation – is in an enviable position with its proximity to Asian markets. Being recognized as the third most livable city on the planet and being part of a safe and stable country do not hurt, especially in light of significant instability elsewhere in the world.
Inflows from Asia, which makes up nearly 50% of overseas tourist inflows, were 13% higher over the first six months of the year. This was led by a 30% gain from China, which accounts for about a third of Asian travel to B.C. Travel from India rose by 26% but represents a relatively small share of the pie. Meanwhile, B.C. has observed a 7.5% gain in Australian tourists. Gains from Europe remain low at 3.3%, not surprising given the poor economic backdrop, while inflows from the U.K. were similar to a year ago.
Positive tourism momentum is expected to persist through the remainder of the year. We expect the U.S. to join in on the fun as a strengthening economy and favourable exchange rate drive higher flows from south of the border. Total annual international tourist visits are forecast to rise about 6%.
