Travel, tourism sectors set for major recovery this year — but business spending lags

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Canada's travel and tourism sector is poised for a big post-pandemic rebound, according to a report from the World Travel and Tourism Council.

The industry is set to contribute $162.6 billion to the Canadian economy in 2023, up 17 per cent from last year, the council said in its latest research. The forecast also comes within sight of the previous peak of $173.9 billion in 2019.If achieved, the activity would furnish about 90,000 more jobs to reach 1.64 million this year, recovering nearly all the travel and tourism positions scrapped during the COVID-19 pandemic.

Canada's transportation and hospitality businesses were among the most battered by the pandemic, which shut borders and restricted travel and restaurant dining. "No industry was hit harder by the pandemic than the food service sector, and the industry still has a long road to recovery," the industry group said in a release earlier this month.

The biggest challenge facing tourism operators is labour, with some 300,000 jobs likely to go unfilled this year, Potter said, adding that higher interest rates remain a major thorn as well.

 

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