P.E.I. tourism market growing, but the industry is shrinking

For a second month in a row, the P.E.I. tourism industry broke records for the amount of business done in July, but the industry itself is growing smaller.

The province released its tourism indicators report for July earlier this month.

The industry posted 273,645 total overnight stays in July. The previous record for the month of July — 272,788 — was set in 2017. For the year to the end of July the industry booked 2.2 per cent more overnight stays than the record year of 2019.

Following two pandemic years, 2022 saw the return not just of Canadians from outside the Maritimes but also of Americans and some overseas travellers. The numbers did not come as a surprise to the Tourism Industry Association of P.E.I., which had been hearing anecdotally that things were busy.

"The biggest piece for us is starting to have that international travel again. The Americans returning and those international markets," said CEO Corryn Clemence.

"Most of the summer we talked about that pent-up demand. We know that that was there. We had some great air access into western Canada that I think really helped develop that market and grow that market a little more."

Because of the difficulty of those travellers coming to P.E.I. last year, 2022 saw triple digit increases in many categories — up 519 per cent from Ontario, 444 per cent from Quebec, and 441 per cent from provinces west of Ontario. Overnight stays from international travellers were mostly up quadruple digits — up 3,506 per cent from mid-Atlantic states and 8,500 per cent from England.

Even the traditional markets of Nova Scotia and New Brunswick saw big increases — 30 per cent from Nova Scotia and 26 per cent from New Brunswick.

Clemence was also encouraged to see visitors spreading out across the Island, and not all congregating in Charlottetown and on the North Shore.

Available space falling

But while people are coming, they are finding fewer options for places to stay.

The industry is shrinking. The number of room nights available is down eight per cent from 2019 and the number of campsite nights is down four per cent. That shrinkage can also be seen in the number of people working in the industry, down 4.8 per cent from August 2019 to August of this year.

The industry has been through some difficult years since the record-setting season in 2019: COVID-19, difficulties attracting workers back into the industry following pandemic-related layoffs, and post-tropical storm Fiona bringing the season to an abrupt end this year.

"There's a lot of fatigue in the industry because of the labour shortages, because the pandemic, and now because of Fiona," said Clemence.

"Making sure that we still have those operators operating next year and not leaving our industry, that's a big concern for us right now."

The industry has launched a three-year plan to develop its workforce. The plan includes addressing issues that are not directly in the workplace, which have been identified as barriers to both recruiting and retaining workers.

"Some of the key pieces in that are transportation, child care and housing," said Clemence.

"We need to ensure individuals have those basic things in order to be able to come to work."

The industry wants to grow and develop, she said, but it needs the people to do that.