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Market Report

Ottawa Hospitality Market Report

3Q 2023

Leisure Travel Leading Industry Recovery
Amid Limited Supply-Side Pressure

Sector fundamentals poised for further improvement. In Ottawa, the hospitality sector’s recovery has been driven by a strong rebound in the number of visitors coming to the metro. In the first four months of 2023, air passenger traffic more than doubled compared to the same period a year ago, which was mostly spurred by transborder and overseas visitors who make up a large share of leisure travel demand. This helped lift the occupancy rate above 60 per cent earlier this year, almost on par with the 2019 level. In contrast to this momentum, the number of domestic inbound visitors is growing at a slower pace, partially due to lagged corporate travel from the public and tech sectors. The federal government’s cut in travel costs and macroeconomic headwinds for the tech sector will likely keep corporate demand muted. Leisure travel could help offset this negative impact as international air passenger volume, which is still below the pre-pandemic high, has potential for further advancement.
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