News Release
Tourism Sets Economic Impact Records, Looks for Growth in 2008
March 25, 2008
Tourism Sets Economic Impact Records, Looks for Growth in 2008
For immediate release: March 18, 2008.
FREDERICTON - Fredericton's tourism industry generated more than $208 million in economic impact for the City, according to a new study released today from Fredericton Tourism.
The economic impact of tourism in Fredericton hit a record $208.4 million in 2007, up 3.3 per cent from $201.7 million in 2006. Tourism revenues are up 84% since 1996 when tourism was worth only $113 million to Fredericton.
"It was a positive year for tourism in the City. The City sold 11,000 more room nights in 2007 than the year before, which saw a loss of 6000 rooms sold. Last year, we got those room nights back and another 5,000. This is tremendously positive," said David Seabrook, manager of Fredericton Tourism.
"With a $208.4 million impact locally, tourism is a major economic engine for the Fredericton area," he added.
Like the rest of Canada, American visitation to the City was down, about nine per cent. New Brunswickers visiting the City more than filled the decline.
The 2007 tourism economic impact study was conducted by McKellar, Cunningham and Associates.
More than 386,000 overnight visitors came to the City in 2007, with an average length of stay at 2.2 days. Visitors spent an average of $103 per day.
With a hotel occupancy rate of 61%, Fredericton ranked 2nd among the top 17 urban markets east of the Manitoba/Ontario border.
Another encouraging trend was the recovery of the motor coach market, which had seen declines in recent years. Last year, motor coach business was up more than six per cent. The number of tour operators adding Fredericton to their itineraries is up again this year.
There were some negative trends pulling down the market last season, including a spike in gas prices, the evaporation of the exchange rate against the U.S. dollar, and a weak Quebec market.
"We will overcome these trends by developing new, high quality tourism products and building regional partnerships to put needed money into marketing," says Seabrook.
"We also need the Province to step up investment in tourism marketing, especially marketing dedicated towards Fredericton and central New Brunswick. A renewed focus on the Capital Region is needed to remain competitive and ensure the region is positioned properly while the overall Atlantic Canadian tourism market bounces back," said Seabrook.
Seabrook expects 2008 to be a growth year for the tourism industry, with the new direct flight from London's Gatwick airport to Fredericton beginning in May. New product development initiatives like the City's vacation learning program edVentures Fredericton will also help stabilize the volatile peak summer tourism season.
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For more information, contact David Seabrook, 460-2089 or 471-0548 (cell).