After difficult trading in 2020 and 2021 due to the pandemic, the Canadian economy is now bouncing back, and some sectors are seeing quite incredible growth, particularly in travel, tourism, and entertainment. Here we look at some industries that are seeing the best recovery.
Concert and Event Promotion
After almost total shutdown, it is hardly surprising that this industry sector is seeing massive growth compared to the preceding years. The total market is worth $2 billion, with over 5,000 businesses employing more than 24,000 people. Revenue is expected to grow by 75% this year.
Campsites and Recreational Vehicle Parks
The aging Canadian population has been investing in camping vehicles, fuelling this sector’s growth. The re-opening of the US / Canadian border also means that there will be an influx of tourists from the south. Over 5,500 businesses are operating in this industry area, and they account for the employment of around 15,000 people. The total value of the market is $1 billion.
Like so many in-person areas of industry, the gambling sector was adversely affected by health restrictions that were implemented to control the spread of Covid-19. While bricks-and-mortar venues struggled, many Canadians tried online gambling for the first time. However, this was not the only reason this industry is forecast to have a positive future. Other factors include better internet connectivity, increased acceptance of mobile gaming, and a general expectation of convenience. Almost half of Canada’s gambling revenues in 2021 were generated from the online sector, which was worth $1.2 billion. The sector is continuing to attract overseas investment. There are over 19 million active online gamblers in Canada.
Scheduled Air Transport
Air Canada and West Jet are the two largest operators in this market. Over 700 businesses are operating in this sector, and no single company has a share of more than 5% of the market. The total market value is $16 billion. After falling sharply due to Covid-19, the industry is expected to make a full recovery. Growth is expected to be around 46% over the course of the next year. This is a significant industry for the Canadian economy and employs over 60,000 people across the country.
Hotels and Motels
This is another area of the economy where strong growth is forecast for similar reasons as all the other industries in the travel and recreation sectors. Hotel and Motel accommodation employs almost 136,000 people in 8,828 businesses. The biggest names in the industry are Marriot International and The Intercontinental Group. However, a growing number of independent operators are offering guests an entirely different experience. The market size is $11 billion, and growth this year is forecast at 45%
Suppose other areas of the tourist sector are bouncing back and showing strong growth. In that case, it is fairly inevitable that the tour operators will also benefit from the opening up of the world again. Canadians are starting to travel outside of the country again, and there is continued demand from overseas travelers using local tour operator services for their trips. This area of the tourism economy has a value of $6 billion and employs around 8,000 people in roughly 1,000 businesses. The operators who have the most significant market share are Transat AT and Flight Centre Travel Group. Revenue growth in the sector is expected to be up 40% this year.
Aircraft Parts Manufacturing
The recovering global economy means that all things to do with aircraft, aircraft engines, and any other parts will see an increased demand post lockdowns. This is a significant part of the Canadian economy, with a sector valued at $22 billion. The Canadian aerospace industry is a world leader in manufacturing business planes, commercial airplanes with less than 150 seats, and civilian helicopters. A very healthy industry is also creating small engines and a wide variety of components for the sector. Over 500 different companies employ a total of more than 50,000 people. Growth is forecast to be around 40%.