This year and especially this winter it looks like there will be no vacations for Canadians, who lead the world in cost of living struggles. Recent UN World Tourism Organization (UNWTO) data reveals many people, particularly Canadians, are still unable to afford a much-needed vacation. Canadians are the nationality with the most significant affordability challenges in travel. 

An astounding 30 percent of Canadians reported being unable to afford vacations in both 2022 and 2023, surpassing all other nations.

Source: //www.statista.com/chart/30920/share-of-people-that-cant-afford-a-vacation/

Global Tourism Still Hasn’t Recovered

There is a concerning trend in the travel industry: Despite a gradual recovery in global tourism, there are still ongoing challenges faced by the global tourism industry in its journey towards recovery. In 2019, international tourist arrivals reached a staggering 1.5 billion. However, as of 2022, this number stands at 963 million. Post pandemic, tourism should have made a considerable improvement compared to 2021 but that does not appear to be the case. 

Many tourism destinations have been able to rely on the Canadian dollar in the past, but that may be changing. Canada is a unique case as the UNWTO data reveals that its tourism spend has dropped to less than half of what it was pre-pandemic. In real terms, Canadians' spend dropped 20.9 percent from 2019 to 2022. 

High Cost of Travel Defers Travel Dreams For Many

Survey results from Statista reveal that nearly a third of adults in the Canada, the United States, and Australia admitted being unable to afford a vacation in 2022 and 2023. The initial years of the pandemic saw the industry crippled by widespread lockdowns and travel restrictions. While the UNWTO identifies a "strong pent-up demand" in 2022, affordability has emerged as another significant roadblock. 

A closer look at the data shows countries such as Mexico, South Korea, and India experience relatively fewer financial constraints when it comes to travel. However, major economies like Germany, the UK, Japan, and Australia also face significant portions of their populations lacking the necessary financial means to embark on vacations.

These trends indicate that global tourism, while on the path to recovery, still struggles to reach pre-pandemic levels. The cost of travel remains a key factor hindering individuals from making travel plans, both domestically and internationally. This underscores the need for innovative solutions and strategies to make tourism more accessible and affordable for a wider range of people. 

Although progress has been made, the industry still faces hurdles, with affordability acting as a major limiting factor. As countries work towards revitalizing their tourism sectors, addressing the issue of cost becomes imperative to ensure inclusivity and ease of travel for individuals across the globe.