SAN FRANCISCO, Feb 28, 2011 (BUSINESS WIRE) -- Taking advantage of a significant tourism opportunity surrounding the 2010 Vancouver Winter Olympic Games, Canada saw a 10 percent increase in spending by international travelers using their Visa cards in 2010 according to the 2011 Tourism Outlook: Canada report released by Visa Inc. (NYSE: V) today. According to the report, the tourism industry in Canada saw a 10 percent spending increase from $5.8 billion in 2009 to $6.4 billion in 2010, in part due to the influx of travelers descending upon British Columbia during the Olympic Games in February.
"In 2010, Canada capitalized on the significant tourism opportunity presented by hosting the Olympic Games, showcasing the country's beauty and attractive destinations to the billions of people around the world," said Bill Sheedy, Group Executive, Americas, Visa Inc. "As a proud sponsor of the Olympic Games and partner with Canada's tourism industry, Visa worked closely with the country by providing the electronic payments infrastructure for the Games that allowed Visa cardholders to safely and securely use their cards while traveling abroad."
Where Visitors Come From
According to the 2011 Tourism Outlook: Canada report, spending by international travelers on their Visa cards within Canada during 2010 increased 10 percent from 2009, with the largest increase from U.S. travelers, who spent $3.5 billion within the country. In fact, spending by travelers from the U.S. represented 55 percent of all spending on Visa cards by international travelers in Canada during 2010.
Travelers from the United Kingdom ($359 million), France ($316 million), China ($229 million) and Australia ($167 million) were the next highest spenders within Canada during 2010, while the biggest year-over-year increases in spending came from travelers from India (65%), Brazil (50%), Russia (41%), Sweden (27%) and China (26%).
Top 2010 Inbound Source Countries, Based on Visa Payment Card Transactions
|Issuer Country||2010||2009||Percent Growth (+/-)|
Once arriving in Canada, international travelers used their Visa cards on general retail purchases ($3.1 billion), such as clothing and food. These purchases represented 48 percent of all Visa transactions by international travelers during 2010. Other major merchant segments included lodging ($932 million), restaurants ($463 million) and other travel and entertainment ($242 million).
Tourism Impact: The Vancouver 2010 Winter Olympic Games
The Vancouver Olympic and Paralympic Winter Games, held in February and March of 2010, provided a significant impact to Canada's tourism revenue during the first quarter of 2010. According to the Canadian Tourism Commission, total tourism spending in Canada increased by four percent to $13.8 billion in the first quarter of 2010.1 Spending by international travelers on Visa cards rose dramatically as well, with $1.3 billion spent on Visa cards in Canada during that time frame - a 13 percent increase over the previous year.
Infrastructure spending due to the Vancouver Winter Olympics should provide a long lasting legacy within Canada as the Games created approximately 17,000 jobs and construction alone generated more than $1.2 billion worth of economic activity.2 In addition, Canada continued to see tourism growth months following the Games, experiencing double-digit growth compared to 2009 in spending by international travelers on Visa cards during the summer months.
According to a study by FutureBrand, Canada's brand awareness was also positively affected by hosting the Vancouver 2010 Olympic Games. According to the FutureBrand 2010 Country Brand Index Canada ranked number one due to the positive effects of hosting the Olympic Games.
Visa has been a proud Worldwide Sponsor of the Olympic Games for 24 years and was the only card accepted at the Vancouver 2010 Olympic and Paralympic Winter Games venues for any official Games-related transactions. Helping ensure the payments infrastructure at the 2010 Vancouver Olympic and Paralympic Winter Games, Visa installed a special ATM network and more than 800 point-of-sale acceptance devices at competition and non-competition venues, including the Main Press Centre, the International Broadcast Centre and the Olympic and Paralympic Villages in Vancouver and Whistler.
As the Canadian tourism industry continues its upward trajectory seen during 2010, Visa is committed to supporting its growth by providing a secure and reliable digital currency for cross-border transactions and access to millions of cardholders globally and partnering with the Canadian tourism industry to provide relevant spending data to help them take advantage of new tourism opportunities created by the Vancouver Winter Olympic Games.
For more information on VisaVue travel data and to view a complete copy of the Tourism Outlook: Canada report,please visit corporate.media.com.
About Tourism Outlook: Canada
Visa cardholder spending data cited is based upon VisaVue(R) Travel data, which reviews tourism spending on Visa-branded payment cards by international visitors from key source countries while visiting Canada during the calendar years 2010 (Jan. 1 - Dec. 31, 2010) and 2009 (Jan. 1 - Dec. 31, 2009).
Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world's most advanced processing networks--VisaNet--that is capable of handling more than 20,000 transaction messages a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit https://www.corporate.visa.com.
1 National Tourism Indicators Report Canada Tourism Commission, August 2010
2 "The Games Effect," PriceWaterHouseCoopers Report 5, March 2010
Danielle Coan, 415-318-4104