Tourism Winnipeg

5 The Winnipeg Barometer Report | Volume 10, 2019 Winnipeg CMA outlook The Conference Board of Canada's Autumn 2018/ Winter 2019 Travel Markets Outlook estimates total overnight visitation to the Winnipeg Census Metropolitan Area (CMA) in 2019 will improve another 2.0 per cent over 2018 visits while related visitor expenditures are projected to advance 5.2 per cent. The local tourism industry benefited from the international media exposure created by the Winnipeg Jets' Stanley Cup playoff run in 2018, as well as the city's hosting of other sporting events. Moving forward, Winnipeg will experience stronger convention activity in 2019 and a number of newly planned hotels will improve accommodation capacity and available meeting space in the city. Local tourism is also expected to benefit from Manitoba being chosen by Lonely Planet, a leading travel guide publisher, as one of the 10 top regions in the world to visit in 2019. Looking out to 2020, tourist activity is expected to get a boost from celebrations being planned for Manitoba's 150th anniversary since joining Confederation. Domestic visits during 2019 are forecasted to see modest growth of 1.7 per cent, down from 2.5 per cent in 2018. The Conference Board attributes this to higher gas prices that will increase the cost of travel and weigh on same-day visits and intra-provincial visits. Also, the economy (both national and regional) Winnipeg CMA overnight travel outlook (percentage growth over previous year in italics) (000's) 2018 2019 2020 Total Overnight Person-Visits 1,653 2.7 1,686 2.0 1,717 1.8 Domestic 1,427 2.5 1,451 1.7 1,473 1.5 United States 146 2.6 151 3.2 155 2.9 Overseas 80 5.6 84 5.5 88 5.2 Total overnight expenditures ($ Millions) 906 6.7 954 5.2 999 4.8 Travel Price Index 4.25 3.12 2.70 Sources: Conference Board of Canada; Statistics Canada have slowed in 2019. Nationally, GDP growth in 2019 is projected at 1.4 per cent, down from 1.8 per cent in 2018. Domestic travel is the largest market segment accounting for more 86 per cent of visits in 2019. Though the business market is smaller, it is forecasted to post stronger growth than the leisure market in the immediate and long term, averaging over 2.0 per cent per year from 2019 to 2022. Looking out to 2020 to 2022, person-visits to Winnipeg are projected to grow under 2.0 per cent annually whereas expenditure growth is forecasted to average around 5.0 per cent. Turning to U.S. travel, the Conference Board projects visits to the Winnipeg CMA in 2019 will grow another 3.2 per cent over 2018 actuals. U.S. leisure overnight travel is forecasted to improve 2.8 per cent, whereas business travel is estimated to grow at 3.8 per cent. The growth of U.S. travel is attributed to the strength of the U.S. economy and increased capacity by U.S. air carriers. However, the Conference Board noted higher gas prices could impact auto travel in 2019. Overall, visitor growth from the U.S. is expected to be limited to under 3.0 per cent between 2020 and 2022. A lack of direct air connections has made it more difficult for overseas visitors to reach Winnipeg from major overseas markets, including the U.K., Germany and China. That is one reason why the overseas segment is less important for Winnipeg than other Canadian metropolitan centres, accounting for just over 5.0 per cent of overnight visits. Despite the lack of direct air connectivity with many major overseas markets, overnight visits expanded by an estimated 5.6 per cent in 2018, largely from the growth in the number of visitors who arrived via other Canadian and U.S. hubs. Overseas tourism activity should get a boost in 2019 from the Lonely Planet recommendation that names Manitoba as one of the top regions in the world to visit in 2019. Over the forecast, average annual growth is projected to exceed 5.0 per cent.

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