Accommodation and Food Services

Weak oil prices contributed to a 4.6% GDP contraction in this industry in 2015. The pullback in business investment also affected business overnight visits that year, with Calgary and Edmonton experiencing drops of 7.2% and 3.3%, respectively. Although overnight visits to the province are only expected to increase by 0.6% in 2016, the industry is preparing for better times. An estimated 2,200 new rooms will open across the province in 2016, with 75.0% of them located in Edmonton and Calgary.

While Albertans may have cut back on hotel stays during the downturn, food services industry data shows that Albertans still love going out to eat and drink. In 2015, each Albertan spent an average of $2,100 at food services operations. While lower than in previous years, the figure is still more than the Canadian average of $1,700.

Canada's weaker dollar is making Alberta more attractive to vacationers from other provinces where the economy is improving, as well as international visitors lured by lower costs. Overnight visits to the province by Americans are expected to grow by 9.2% by 2019, while overseas visits will increase by 12.0% in that same period. Newly built attractions, such as Calgary's National Music Centre and Edmonton's Rogers Place arena and Royal Alberta Museum, are also expected to bring in more tourists. Albertans who remain confident about their employment and income will continue to spend their discretionary dollars at restaurants and bars.