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Rural Tourism

 
 
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 Oftentimes tourism is promoted as a viable option for economic diversification in rural areas. But what does that mean in the grand economic scheme? Looking back ten years, in Alberta domestic travel receipts made up 2.5% of GDP. In 2004, tourism to Alberta generated $4.96 billion in spending. Canada-wide, tourism accounted for 2.2% of Canada's gross domestic product (GDP) in 2002.

In Canada’s rural regions tourism employment represented approximately 3% of total employment. In Alberta, of total tourism employment, only about 30% occurred in rural regions. Between 1996 and 2003, total employment in Alberta’s rural regions grew by 14% while tourism employment in those regions only grew by 7%, compared to the Canadian average where total employment in rural regions grew by 11%, less than the 15% growth in tourism employment. In Canada’s predominantly rural regions, the accommodation industry represented about 40% of tourism employment, the food and beverage industry 27% and 16% in recreation and entertainment.

In terms of numbers of travelers, of 18.3 million person visits in 2004, 73% were Albertans while 3.2 million (17%) were from other provinces. In 2002, Alberta drew 9% of all tourist visits in Canada with 53% of those visits being to a predominantly rural region versus 43% to a predominantly urban region.

Note that a 'predominantly rural region' has more than 50% of its population living in rural communities. A ‘rural community' has a population density of less than 150 persons per square kilometre. In Canada, census divisions (i.e. counties and municipal districts) are used to represent regions and census consolidated sub-divisions (i.e. incorporated villages, towns, cities) are used to represent communities. Predominantly urban regions are census divisions where less then 15% of the population lives in rural communities.

Table 1. Percentage share of person visits and tourism revenues in Alberta by tourism region
Destination Region
Region’s percent share of Alberta’s total tourism
% of total person visits to Alberta% of overseas person visits% of American person visits% of Albertan person visits% of other Canada% of Alberta’s total tourism revenues
Rockies
17
68
40
13
12
23
South
14
7
18
14
12
7
Central
22
6
11
27
13
11
North
8
1
6
9
9
7
Urban (Edmonton & Calgary regions1)
47
65
65
39
38
45
*Percentages do not add up to 100 as one visitor may visit multiple regions.

Looking at the division of visits to rural regions in Alberta, 22% of all visits were made to the central region (Table 1), most of whom were Alberta travelers. If we look at place of origin of the visitor, then the Rockies represent a substantial 68% of person visits of overseas visitors.

In 2001, about 25% of Canada’s domestic person-visits involved sports or outdoor activities, a market often involving rural regions. In 2002, approximately half of Canadian tourists visited predominantly rural regions, of which there was an equal split between rural metro-adjacent and non-metro adjacent regions. In terms of visitor demographics, Canadian people under age 20 (52%) were slightly more likely to visit a predominantly rural region that those aged 55 and older (48%). The demographics of USA tourists was the reverse, with rural visits by those 55 and older exceeding those of people aged 20 and under by 12%. The difference may be accounted for in the fact that, for Canadians, 38% of those rural visits were as adults with children.

Looking at the agriculture tourism subset of rural tourism, a 2004 survey revealed that approximately 14% of Alberta households had taken a farm trip in the previous year with an estimated value of $52 million. A larger percentage of Alberta households (38%) had an ag-related trip in the same time period. The estimated value of these activities is $274 million. Farm trips would include paying to stay on a guest ranch, attending a riding camp, going on a sleigh ride or to a petting farm while ag-related trips are those that are off-farm – a fair, auction, rodeo, ag-related trade show or equipment show. Farm holidays would occur in rural areas while ag-related holidays may take place in urban areas, i.e. the Canadian Finals Rodeo is in Edmonton. Agtourism, trips involving travel greater than 80 km from home one way, involved 19% of Alberta households with an estimated market value of $194 million. The average number of visits per year in each of the preceding three categories ranged from 2.5 to 3.4.

Overnight travel makes a significant contribution to tourism revenues. In 2004, 41.0 million person nights were spent in Alberta. Overnight visits accounted for 54% of visits to the North, 67% of visits to the Rockies, 62% of visits to the South and 56% of visits to the Central Region. Spending by visitors spending more than one night represented anywhere from 78% (Central) to 97% (Rockies) of all tourism money spent in the region.

Overnight spending by region in 2004:
Rockies $1.019 billion
South $283 million
Central $369 million
North $249 million
Urban $1.819 billion

Table 2. Purpose of Overnight Travel and Spending by purpose per region
Destination Region
Purpose of Overnight Travel
Pleasure
Visiting Friends & Relatives
Business
Other
% overnight travel % spent% overnight travel % spent% overnight travel % spent% overnight travel % spent
Rockies
74%
77%
14%
7%
8%
13%
4%
3%
South
43%
45%
40%
25%
9%
19%
8%
11%
Central
37%
32%
43%
32%
10%
24%
10%
12%
North
31%
24%
32%
13%
23%
42%
14%
21%
Urban (Edmonton & Calgary regions1)
62%
62%
75%
54%
36%
62%
27%
22%

A Canadian study looking at the purpose of travel showed that there is a positive relationship between the purposes of ‘rest-and-relaxation’ and ‘family-and-friendship ties’ in that those looking for a break from the daily grind are also wanting to strengthen social bonds. However, rest and relaxation has the priority. Those travelers seeking rest and relaxation tend to be those with children, whereas solo travelers, couples and older travelers score higher on the ‘learning and discovery’ purpose. Recognizing the different aims of different travelers is important when marketing tourism. Rest and relaxation is most important for those working. With a large proportion of the population entering retirement years, one could presume that the demand for learning and discovery travel is going to increase. Furthermore the majority of the population is urban, putting rural areas in an advantageous position to offer new and educational experiences for an older, urban traveler. As presented, tourism is not a huge contributor to the economy, but it is an option worth considering for communities seeking economic diversification.

Sources

Beshiri, Roland. 2005. Tourism Employment in Rural Canada. Rural and Small Town Analysis Bulletin Vol. 5, No. 8. Catalogue no. 21-006-XIE. Ottawa: Statistics Canada.

__________. 2005. A Visit to Canada’s Countryside: Rural Tourism. Rural and Small Town Analysis Bulletin Vol. 6, No. 5. Catalogue no. 21-006-XIE. Ottawa: Statistics Canada.

Crompton, Susan and Leslie-Anne Keown. 2009. Going on Vacation: Benefits Sought from Pleasure Travel. Canadian Social Trends. Catalogue no. 11-008-X. Ottawa: Statistics Canada.

Feasibility Team, Ag-Entrepreneurship Division. 2004. Alternative Agricultural Market Quantification Study. Alberta Agriculture and Rural Development. Available from http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/apa547/$FILE/m_q_report_final.pdf

Tourism Destination Region Summaries of Visitor Numbers, Revenue & Characteristics – 2004. Available from http://www.tpr.alberta.ca/tourism/statistics/destinationregions.aspx

Tourism Statistical Digest. 2001. Catalogue no. 87-403-XIE. Ottawa: Statistics Canada.


Edmonton region includes Leduc County, Beaumont, New Sarepta, Leduc, Devon, Calmar, Stony Plain, Spruce Grove, Strathcona County, Fort Saskatchewan, Sturgeon County, Edmonton, St. Albert, Gibbons, Redwater, Bon Accord, Morinville, Legal, Stony Plain 135, Alexander 134.
Calgary region includes MD of Foothills, High River, Longview, Turner Valley, Black Diamond, Okotoks, MD of Rocky View, Calgary, Chestermere, Cochrane, Airdrie, Irricana, Beiseker, Crossfield, Eden Valley 216, Tsuu T'ina Nation 145 (Sarcee 145), Kananaskis.

 
 
 
 
For more information about the content of this document, contact Patricia Macklin.
This information published to the web on May 29, 2009.