Tourism boost leads to healthy local economy
Two studies say high hotel occupancy rates attributed to royal visit, new convention centres
CBC News
Posted: May 17, 2012 7:41 AM ET
Last Updated: May 18, 2012 10:17 AM ET
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Tourism has been a driving force for economic growth and job creation in the National Capital Region in the last year, according to two studies looking into the health of the local economy.
A new study says the local economy got a boost from several tourism-related factors, including the opening of the Convention Centre. (Ottawa Convention Centre)The Ottawa-Gatineau Hotel Association said a study conducted on their behalf found 2011 was a booming year for hotel occupancy in the region, and that some 10,200 jobs were created the service industry, including from hotels, restaurants, retail and transportation.
Dick Brown, the group's executive director, credits the rise in the tourism industry to increased conference and convention traffic at the new downtown Convention Centre as well as the new CE Centre near the airport.
Last year also had a singularly big event with the arrival of newly married royal couple Prince William and his wife Kate, the Duchess of Cambridge.
By the end of 2011, average employment in the accommodation and food industries in the Ottawa-Gatineau region was up 3.4 per cent over 2010, according to a Statistics Canada labour force survey.
The accommodation portion was up 4.6 per cent, while the food services portion was up 3.2 per cent. The growth was higher than the overall employment growth in the region, which was up 0.7 per cent in 2011 across all industries.
Developer study suggests room for more development
The findings of the hotel association match another report commissioned by developers looking to build in Ottawa. Study authors Shore-Tanner and Associates also found hotel occupancy rates were high in the city, suggesting there was room for more development.
"The average hotel occupancy rate in Ottawa is quite healthy now, the envy of many other cities," said study author Barry Nabatian, who said the industry hired 10,000 more people when comparing April 2012 to the same month in the previous year.
Recent numbers from Statistics Canada show 3.6-per-cent job growth in April in the Ottawa region compared to last year.
Growth could slow due to federal job cuts
But the Conference Board of Canada's forecast warns there will be slower economic growth in Ottawa-Gatineau as the federal government's job cuts kick in.
Tourism has been one of the focuses of Ottawa Mayor Jim Watson's campaign to diversify the city's economy. In January, the city created a major events office to work with Ottawa Tourism to draw larger sports and cultural events to the capital.
Ottawa hosted the 2012 NHL All-Star Game in January, the Juno Awards in April, is set to host the 2013 IIHF World's Women's Championships, and is one of several host cities of the 2015 FIFA Women's World Cup.
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