Second quarter 2009 Outlook

Statscan - Canada's hoteliers were not optimistic in their outlook for the second quarter of 2009. Their business expectations were more negative than they were the first quarter.

Over three-quarters (78%) of hoteliers expected the number of room nights booked and the occupancy rates to be lower for the second quarter, compared with the same quarter last year. Similarly, 73% anticipated fewer corporate travellers.

More than half of hotel operators (57%) reported that they were expecting average daily room rates to be lower, compared with 10% that anticipated rates would be higher.

Almost three-quarters of respondents expected that the number of hours worked by their employees would decline, while 2% expected increases.

Over half of respondents cited regional economic conditions as a major impediment. In contrast, 12% indicated this as an impediment one year ago. The next two most-cited impediments were excess room supply (36%), and exchange rate fluctuations (28%).

Note: The Business Conditions Survey for the traveller accommodation industries is a voluntary survey, which was sent to 1,426 businesses, mostly hotels. It was conducted in March/April 2009 to assess the second quarter outlook for key indicators compared with the same period last year. These indicators include bookings, occupancy rates, average daily room rates, hours worked by employees, and number of corporate travellers.

Results are based on survey questionnaires sent to traveller accommodation providers and are weighted by their operating revenues.

The survey is made possible with the support of industry partners, the Canadian Tourism Commission, the Ontario Ministry of Tourism, Tourism Saskatchewan, Nova Scotia Department of Tourism, Culture and Heritage and Industry Canada.