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The Economy 2004- Newfoundland and Labrador
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Tourism
 
Background  
Non-Resident Visitors

 Click for larger view

 
Note: Cruise visitors are not included because of the scale of the chart.
There were 14,066 cruise visitors in 2003.
Department of Tourism, Culture and Recreation

Outlook For 2004
Tourism performance is expected to hold steady in 2004.
Resident spending is expected to be about the same as last year.
Non-resident visitor numbers are also expected to remain on par with 2003 levels. High gasoline prices and increases in ferry rates will negatively impact auto visitors. Discount air lines will continue to boost growth in air travel.
An increase in port calls for cruise ships is expected but, with smaller vessels, the number of passenger visits will remain on par with 2003.
Convention and meeting bookings point to the busiest year since 1997. New accommodation capacity in St. John’s and on the West Coast will foster growth.
The province will mark 500 years of French heritage with special events, festivals, exhibitions and enhanced interpretations.
Tourism accounts for about 2% of total GDP in the province. It contributes 7,000-8,000 person years of direct employment and between $160-$180 million in labour income. The number of people employed is substantially higher than the person year figure due to the seasonal nature of the industry. In terms of spinoffs, every 100 person years of employment in tourism generates an estimated 50 person years of employment elsewhere in the economy.

Total tourism spending is estimated at about $800 million per year. Residents account for about 63% of total spending with the remainder by visitors to the province. Both resident and non-resident tourism have increased considerably in recent years.
 

Performance in 2003
 
Last year was a relatively good year for tourism in the province. While resident travel figures are only available up to 2001, solid gains in employment and income in 2003, as well as high consumer confidence are believed to have positively affected the tourism industry. These positive impacts are expected to have outweighed the dampening effects of currency appreciation and high fuel costs on the local market. 

Non-resident travel to the province held its own in 2003. Preliminary estimates show 441,400 visitors, spending $316 million—both on par with 2002. More air visitors offset declines in auto and cruise visitors. This performance is similar to the other Atlantic Provinces but ahead of national performance. Nationally, many challenges, including a weak U.S. economy, a higher valued Canadian dollar and a series of one-time economic shocks contributed to a lower number of tourists from other countries. 
 
 
Cape Spear Lighthouse
Photo Credit: Dept. of Tourism, Culture and Recreation
   
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This information was current as of March 16, 2004.
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