OTTAWA, March 13 /CNW Telbec/ - Following two years of losses, Canada's
hoteliers can expect to earn a modest profit of $236 million in 2007,
according the Conference Board's new Canadian Industrial Outlook: Canada's
Accommodation Industry-Winter 2007.
"Although sales are strong, thanks to a steady increase in domestic
travel, tight labour markets are pushing wage costs higher and profit margins
will remain slim this year," said Louis Thériault, Director, Canadian
Industrial Outlook Service.
Canada's tight labour market is of particular concern to the
accommodation industry, as average weekly earnings in 2006 grew much faster
than the average for all industries. As they have for the past three years,
hoteliers will again pass their rising costs onto consumers by raising prices
above the rate of inflation.
A continued decline in the number of U.S. visitors will limit the
industry outlook. With the implementation of new passport rules this year for
air travellers entering or re-entering the United States, foreign spending is
expected to remain weak in 2007. A significant recovery in foreign visitors is
not expected until after 2008, once travellers have adjusted to the full
implementation of the Western Hemisphere Travel Initiative.
Canadian Industrial Outlook: Canada's Accommodation Industry is a new
publication by the Conference Board. The Winter 2007 outlook is the first
publication of the accommodation industry forecast.
For further information:
For further information: Brent Dowdall, Media Relations, (613) 526-3090,
ext. 448, email@example.com www.conferenceboard.ca