Tourism spending in Canada was falling even before the impact of severe acute respiratory syndrome had been felt, Statistics Canada said today.

The agency said spending fell 0.8% in the first quarter of this year, as visits from international travellers dropped sharply. “The outbreak of SARS was barely felt in the quarter, with the brunt of its effect still to come,” it said.

A 4.5% cutback in spending by non-residents more than offset a 1.0% advance in domestic tourism spending, StatsCan said. Tourism spending remained 4.3% below its peak in the first quarter of 2001.

The agency noted spending by international tourists in the first quarter was at its lowest level since the second quarter of 1999. Non-resident tourism spending was down a sharp 4.5% for the quarter, following a 2.6% gain in the fourth quarter of 2002. The total number of visitors fell 6.9%, as tourists from both the United States and other countries made fewer trips to Canada.

“Security concerns over the war in Iraq, a continued weak global economy and a 4.0% appreciation of the Canadian dollar vis-à-vis its U.S. counterpart were all factors behind the decline.”

The decrease in non-resident outlays was widespread. Air transportation services purchased by non-residents were down 5.2%. Non-resident spending on accommodation (-4.1%) and food and beverage services (-6.0%) were also down markedly.

With the drop in spending from abroad, Canada’s international travel deficit deteriorated to $585 million (at current prices) from $428 million in the fourth quarter of 2002. “A deficit indicates that Canadian travellers spend more abroad than international visitors spend in Canada,” the agency said.

Meanwhile, with fewer international visits, Canadians accounted for 67.1% of total tourism spending in Canada during the quarter — the largest share since the fourth quarter of 1997. Domestic tourism spending was up1.0%, as Canadians spent more touring at home and less abroad than in the fourth quarter of 2002.

Overall spending on many tourism commodities fell in the first quarter. Passenger air transportation dropped 1.9%, following robust gains in the fourth quarter of 2002. Accommodation spending fell 1.2%, while food and beverage consumption dropped 1.9%. Expenditures for vehicle fuel edged up 0.4%, partly offsetting some of these declines.

Tourism employment remained steady in the first quarter at 586,100 jobs, after two quarters of healthy growth. Job losses in passenger air transportation and food and beverage services were offset by slight gains in accommodation and recreation.