Market Readiness Index
International markets show mixed results while demand from the U.S. and domestic Canadian markets grows steadily.
Canadian consumer confidence grew throughout the summer as the Bank of Canada made key rate cuts, reaching its highest level since August 2023. Domestic visitation demand showed moderate gains year over year, reaching levels at par with 2019.
Arrivals from the U.S. market continue to grow year over year, reaching 85% of 2019 levels YTD. The prevailing strength of the U.S. dollar against CAD has also created favourable conditions for American travellers travelling to Toronto. While Google searches for accommodations (+24%) and flights (+8%) have grown, the upcoming U.S. Federal elections could have a mild impact on U.S. travellers coming to Toronto in the last quarter (Q4) of 2024.
Overseas markets continue to show mixed levels of readiness. Visitation demand from the U.K. and Germany has remained strong through the summer, with YTD arrivals now at 88% and 83% of 2019, respectively. Visa requirements for Mexicans continue to impact visitation demand with YTD arrivals still 28% behind pre-pandemic levels. Compared to the same period last year, Google search activity for accommodations and flights has dropped, -42% and -44% respectively, signalling a significant drop in traveller interest in Mexico.
Geopolitical challenges and severely constrained direct air capacity are holding back Chinese visitation demand which has only reached 34% of 2019 levels YTD. Travel demand and interest from Japan have continued to show steady growth year over year, but remain 47% below levels observed in 2019. Despite a 4% year-over-year appreciation in currency value, the weakness of the Japanese Yen continues to put an additional financial strain on Japanese travellers planning a trip to Toronto.
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