World Trade Organization, Geneva, Feb. 232-24, 2001

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Sectoral Economic Linkages and the Tourism
Satellite Account The Canadian Experience

Presented by Scott Meis
World Trade Organization, Geneva, Feb. 232-24,
2001
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Outline

• Introduction- the Canadian TSA
• Rationale
• Key Concepts
• Key Economic Results
• Structural Findings and linkages
• Conclusions

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Introduction

• CTC Created in 1995 2001
• OBJECTIVES
• Market Canada as a destination BRAND
  Canada
• Provide accurate and timely information to
  aid decision making

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Rationale Information Gaps
1992/93
Inadequacy Of Data Analysis

• Lack aggregate summary
• Lack view of industry
• Lack credibility
• Lack indicators of performance
• Incomparable with economy
• Incomparable with other sectors
• Incomparable with competitors

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Rationale - User Requirements
Application Requirements (NTFTD, 1986)

• Advocacy, planning and public awareness
• Marketing
• Investment, operations and management
• Manpower, education and training

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Introduction
1979-2000

• French concept of tourism satellite accounts,
  1979
• Canadian Task Force feasibility study, 1985
• Canadian TSA recommendation, 1989
• Ottawa Conference TSA guidelines, 1991
• WTO/UN recommendations,1993
• Canadian TSA release, 1994
• WTO\OECD conceptual frameworks, 1996-1999
• Other national projects, 1996-1999
• Nice, 1999
• UN-SC endorsement, March 1, 2000

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Tourism Satellite Account
Rationale A New Statistical Instrument

• Integrates/interrelates dispersed phenomena
• Separate linked extension of SNA
• Unit of analysis - monetary values
• Set of detailed statistics measuring structure
  and scope of tourism outputs, expenditures and
  employment.
• Tourism specific summary of observations
• Comparable with total economy
• Comparable to other industries

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Canadian TSA extensions
Current Extensions

• National Tourism Indicators
• Government revenue module
• Tourism Economic Impact Model
• Benchmark updates

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Tourism Commodities
Key Concepts

• Tourism Commodity A product or service
  produced mostly for tourism, eg., tours on
  steam trains.
• Non- tourism Commodity A product or service
  not specific to or characteristics of tourism,
  eg., clothing, suntan lotion.

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Tourism Industries
Key Concepts

• Tourism Industry Any industry that serves
  visitors directly and would cease to exist or
  whose level of activity would be substantially
  reduced wiithout tourism, eg., hotels.

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Key Concepts Tourism Commodities
Tourism Sector Commodities Excluded From
W120
Food and beverage services 21
Other related services
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Tourism Operator
Key Concepts Tourism Business

• Tourism Operator/Business Any tourism
  enterprise or establishment within an empirically
  identified characteristic or specific tourism
  industry, eg., hotels.

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Tourism Gross Domestic Product ( TGDP )
Key Concepts Tourism GDP

• Tourism specific GDP
• Total value added by tourism and non-tourism
  industries generated by provision of goods and
  services to visitors
• Total value at purchasers price minus costs and
  taxes

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Definition of Employment
Key Concepts Employment

• Persons employed, whether full-time or part-time.
  
• Count only employment due to tourism demand
• Includes both tourism and non-tourism industries

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Canadas Overall Tourism Market Mix, 1999112.5
million tourist trips
Key Economic Results Old Measures
Domestic tourism 74.6 million overnight trips
Outbound tourism 18.4 million overnight trips
Inbound Tourism U.S.15.3 million overnight
trips Overseas 4.2 million overnight trips
tourist 1nights
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Canadas Overall Tourism Market Mix,
1999112.5 million tourist trips
Key Economic Results Old Measures

Internal Tourism (DomIB) 94.1 million
overnight trips
International Tourism(IBOB) 37.9 million
overnight trips
National Tourism (DomOB) 93.0 million overnight
trips
tourist 1nights
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Reciepts and Payments on Canadas Travel
Account(billions)
Key Economic Results Old Measures 1999
Payments Spending by Cdns 15.1
Receipts Spending by For Ress 16.8
Balance -1.7
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Reciepts and Payments on International Passenger
Fares (billions)
Key Economic Results Old Measures 1999
Payments Spending by Cdns Ress on For Carriers
3.7
Receipts Spending by For Ress on Can. Carriers
2.7
Balance -1.0
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Key Results New Measures
Industry Performance 1999

• Tourism spending 50.1
• Foreign spending 15.3
• Canadian spending 34.8
• Tourism GDP 20.3
• of total GDP 2.5
• of services exports 30

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Key Results Tourism 11th largest industry in
1999
Business Sector Share of GDP by Industry
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Composition of Tourism Demand in Canada
Structural Linkages Total Demand
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Tourism GDP Share by Industry
Structural LinkagesTourism GDP
Total Tourism GDP 20.3 Billion (1999)
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Structural Linkages Business Characteristics
Distribution of Tourism Businesses by Industry
and Size
Food and beverage service (92) 57
99.0 Recreation and entertainment (85,96) 19
99.0 Accommodation (91) 12
97.6 Transportation (45) 6
98.9 Travel services (96) 5
99.5 Other 1 ---
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Tourism Employment by Industry 524,000 Jobs
Structural Linkages Employment
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Structural Linkages Government Revenues
23 PER 100 DOLLARS TOURISM SPENDING
TOTAL 15.4 Billion (1999) Adjusted 30
/100 spending
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Sectoral Linkages Intra-sectoral purchases
Inputs to Canadian Tourism Sector Selected
Industries in 1994
Selected Commodity Purchases
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Sectoral Linkages Extra-sectoral purchases
1994 External Inputs to Canadian Tourism Sector
Selected Industries
Selected Commodity Purchases
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Performance Trends
Total Tourism Spending in Canada by key
Commodities 1999 in Review
Commodity Categories
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Performance Trends
Tourism Exports Spending in Canada by Key
Commodities 1999 in Review
Commodity Categories
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Performance Trends
Tourism Hard Hit by Domestic Business Cycle
Cyclical Deviation
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Performance Trends
Tourism Exports a Growth Leader
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Impacts Reduced Deficit
Travel Deficit
Billion
Estimate Source Statistics Canada
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Impacts Employment
Employment
524 000
Thousands
1999
14
New Direct Jobs 65 000
459 000
1992
Third quarter Source Statistics Canada
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Impacts TGDP Growth
Tourism GDP
1999 20.1 B
Tourism GDP ( B )
1995 16.2 B
1999 2.5
Tourism GDP Ratio
1995 2.3
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International Vision - Future challenges
Research and Development

• Medium long term
• UN-SC endorsement of revised definitions and
  classifications
• Developing extensions and applications
• Labour force module
• Tourism capital formation module
• Tourism balance of payments
• Links with environmental accounts

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Who knows? Who cares?

• TSA is an invaluable tool in moving tourisms
  political agenda forward 
•  The TSA also helps industry members define
  themselves as part of tourism 
•  TSA raised the profile of tourism 

Debra Ward,President of TIAC World Conference on
the Economic Impact of Tourism, France, 1999
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Who knows, who cares Follow the leader

• Sweden 1996
• Norway 1997
• Poland 1997
• Singapore 1997
• USA 1998
• Mexico 1998
• New Zealand 1998
• Australia 2000
• Spain In progress
• Thailand In progress

Canada 1994
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Conclusions
Conclusions

• Met user requirements
• Defined tourism products/services
• Defined tourism industries
• Credible measures
• Comparability with total economy
• Comparability with other industries
• Potential foundation of trade negotiations
• Potential tool for monitoing international trade
  perfomance

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Thank you for your attention
WEB canadatourism.com CTX http//www.ctc-ctx.com
E-Mail meis.scott_at_ic.gc.ca
Canadian Tourism Commission