Page 15 - Summer eng 2017

eCONOMy OutlOOk
The golf industry operates within, and is influenced, by a complex Canadian economy. Therefore, the NGCOA Canada Pulse Report summarizes some of the key economic indicators affecting golfer spending and golf course operator business opportunities.
In recent years, this economic landscape has not been particularly friendly to our industry. However, most fiscal indicators have recently forecasted a relatively good outlook for 2017.
Consumerconfidencehasbeen significantly improving, hitting its highest level since the recession according to the Conference Board of Canada. This bodes well for golfers’ potential spending this summer and particularly well for Quebec and Ontario courses, where consumers are showing the most improvement in this index.
One driving factor behind the improved consumer confidence is employment. Statistics Canada reports that employment numbers in 2017 will continue to show reasonable growth, forecasted to grow by 1.2% and yield an unemployment rate of 6.7%, which would be the most favourable in several years. BC is expected to lead with only 5.7% unemployment, followed closely by Manitoba, Ontario and Quebec who should all outperform the national average. The Atlantic Provinces and Alberta continue to track significantly weaker.
When it comes to Gross Domestic Product (GDP), Alberta and Ontario will lead the country in 2017, at an impressive 2.6% real (adjusted for inflation) growth, followed by BC at 2.4%. Canada’s national GDP is forecasted to grow 2.3%, so the country as a whole
should outperform both 2015 and
2016. Some economists are actually forecasting GDP growth as high as 2.6%. Newfoundland-Labrador is the only province with an economy projected to contract slightly.
Strong housing, manufacturing, more stability in the oil sector, and exports are leading indicators driving the good news GDP story.
Tourism in Canada is also providing encouraging news that may benefit golf. Helped by the favourable exchange rate, 2016 saw a 4.2% increase in tourism spending, and a 14 year high on the number of travelers. Both domestic and international tourism were up, including a record number of American travelers arriving by air.
For 2017, Canadian tourism should remain strong with Canada’s 150th Anniversary added to the value of the exchange rate and boosted marketing by Destination Canada and affiliates. With golf
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