French hotel group Accor said Canada is gaining traction as a tourist destination as travellers increasingly avoid the United States for holidays.
Canada is benefiting from this influx of travellers, chief financial officer Martine Gerow said on a call with reporters, adding that Canadians are also scaling back travel to the US.
Evidence is mounting that lucrative transatlantic travel may be at risk as European visitors avoid the US amid a larger shift in anti-American sentiment and US tourists rein in spending. Chief executive officer Sebastien Bazin warned earlier that Accor’s forward hotel bookings from Europe to the US this summer are down 25%.
Arrivals of non-citizens to the US by plane dropped almost 10% in March from a year earlier, the US’s International Trade Administration data shows. The pullback could cost the US economy almost US$90bil (RM389.3bil) in 2025, Goldman Sachs Group estimates.
“The good news is, if they don’t go to the US they usually end up going somewhere where Accor is present,” Gerow said.
Accor reported first-quarter revenue of €1.35bil (RM6.65bil), ahead of the average analyst estimate, and confirmed its medium-term growth outlook. Demand was sustained through April and May, though visibility is limited beyond that, Gerow added.
Revenue per available room – a key measure of profitability – rose 5% in the first quarter, according to a recent statement.
Meanwhile, the Philippines is planning to issue digital nomad visas to attract foreigners who are working remotely and boost tourism.
President Ferdinand Marcos Jr issued an order allowing the Department of Foreign Affairs to issue the visas valid for a maximum period of one year. Foreigners who will apply for the visas must show proof of sufficient income, and must be from a country that offers a similar visa to Philippine nationals.
The Philippines adds to countries that have offered remote work visa schemes, even with a recent push for return to offices. Foreign tourist arrivals have yet to recover to pre-pandemic levels, although tourism revenue has bounced back.
Tourism contributed 8.6% to Philippine economic output in 2023, according to government data. – Bloomberg
