Daily Exchange

Statscan - Canadian hoteliers' continued to be less optimistic about the business outlook in the traveller accommodation industry in the fourth quarter of 2009. However, their outlook is less negative than it was in the previous quarter.

Almost two-thirds (65%) of hoteliers expected occupancy rates to be lower than they were during the same quarter last year, while 8% anticipated increases. Thus, the balance of opinion, or difference between the two, was -57.

As has been the case since the first quarter of 2009, more hotel managers (58%) expected average daily room rates to be lower for the remainder of this year compared with those (7%) who expected room rates to be higher.

Regional economic conditions continued to be the most commonly-cited business impediment (64%). In contrast, 29% of the respondents cited this as an impediment when surveyed for the same quarter of 2008.

Traveller accommodation industries
	Fourth quarter 2008	First quarter 2009	Second quarter 2009	Third quarter 2009	Fourth quarter 2009
Anticipated number of room nights booked
About the same (%)	44	26	18	19	29
Higher (%)	10	7	3	5	7
Lower (%)	47	67	78	76	64
Balance of opinion	-37	-60	-75	-70	-56
Anticipated occupancy rate
About the same (%)	46	26	18	18	27
Higher (%)	10	8	4	5	8
Lower (%)	44	66	78	76	65
Balance of opinion	-33	-59	-74	-71	-57
Anticipated number of corporate and/or commercial travellers in this business unit
About the same (%)	54	31	24	24	31
Higher (%)	10	4	3	3	6
Lower (%)	36	65	73	74	64
Balance of opinion	-27	-61	-70	-71	-58
Anticipated average daily room rate
About the same (%)	46	50	33	31	34
Higher (%)	27	13	10	7	7
Lower (%)	27	37	57	62	58
Balance of opinion	0	-23	-46	-55	-51
Anticipated total number of hours worked by employees in this business unit
About the same (%)	56	35	26	32	37
Higher (%)	10	2	2	2	3
Lower (%)	34	63	72	66	60
Balance of opinion	-24	-61	-71	-64	-58
	Third quarter 2008	Fourth quarter 2008	First quarter 2009	Second quarter 2009	Third quarter 2009
	%
Business impediments
Regional economic conditions	29	46	54	66	64
Excess room supply	27	32	36	37	36
Exchange rate fluctuations	46	40	28	34	27
Lack of attractions or complementary facilities in the vicinity	16	19	20	21	20
Shortage of skilled labour	28	19	11	13	16
Public health	1	1	0	15	15
Shortage of unskilled labour	31	16	10	11	14
Abnormal weather and/or natural disasters	9	19	8	10	12
No difficulties at this time	17	15	10	8	11
Canada's reputation as a desired tourist destination	16	15	10	13	9
Security concerns	3	5	3	3	4

Note: The Business Conditions Survey for the traveller accommodation industries is a voluntary survey sent to 1,453 businesses, mostly hotels. The balance of opinion is determined by subtracting the proportion of traveller accommodation businesses that stated their business activity would be lower relative to the same quarter of the previous year, from the proportion who believed their activity would be higher.