Accommodation and Food Services

Weak oil prices in 2016 affected consumer confidence and household spending. This meant a 2.0% drop in domestic travel and no growth in overall overnight visits. Lower business investment continued to affect business overnight visits in 2016, though not as much as in the previous year.  Calgary had a drop of 3.5% and Edmonton saw a 2.8% downturn.

While Albertans may have cut back on hotel stays during the downturn, food services industry data shows  they still love going out to eat and drink. In 2016, each restaurant or bar patron in Alberta spent an average of $2,110. This was more than in any other province. It also means better profits for owners. Alberta’s food service industry is second only to Saskatchewan’s in terms of high operating margins or profits. Nevertheless, higher payroll and energy costs affect the bottom line.

Alberta’s Ministry of Culture and Tourism has set a $10.3 billion goal for the industry by 2020. Several factors will help to increase overnight visits by about 2.8% in 2017. These include a recovering Alberta economy and free entry to Alberta’s national parks. More international visitors lured by Canada's weaker dollar will also help tourism. By 2020, U.S. tourists will spend $1.1 billion in the province. Overseas tourists will add another $1.6 billion. New, direct flights from Beijing and Mexico City to Calgary will provide some of that boost. Edmonton’s newly built Rogers Place arena and Royal Alberta Museum will also boost spending. As the economy improves, Albertans who stay confident about their employment and income will continue to go out to eat and drink. Industry experts see more demand for fast, take-away breakfasts as a trend to watch.