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Special Report

Canada Hospitality National Report

3Q 2024

International Visits Take Lead as Domestic Travel Normalizes

Demand supported by inbound travel. In the second year without public health restrictions, rising travel demand continued to drive hotel revenues higher in 2023. The national occupancy rate exceeded pre-pandemic levels, with revenue per available room registering an annual increase of 18 per cent. As domestic travel demand fully normalized, a continued increase in inbound travel by nonresidents contributed to this upward momentum. Moving into 2024, however, the occupancy rate plateaued in the first half of the year, likely due to softer spending from the domestic market, especially as elevated interest rates tightened budgets for Canadian businesses and households. While this trend is expected to persist, a further recovery in inbound travel will help support hotel demand through year-end. RevPAR is forecast to increase by 4.1 per cent in 2024, driven primarily by rising average daily rates amid limited inventory expansion.
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