The number of non-resident visitors entering Canada through British Columbia declined again in February. On a seasonally adjusted basis, there were 12.4 per cent fewer non-resident visitors in February than in January. This is the second consecutive monthly decline. The number of overnight tourists fell by 11.9 per cent, while the number of same-day excursions dropped by 13.3 per cent. Despite the month-over-month decline in visitors, the number is still around 97.7 per cent of the monthly average of the previous 12 months.
The overall decrease in visitors was primarily driven by a 15-per-cent drop in the number of U.S. residents visiting Canada through B.C. from January to February. Among U.S. visits, the number of overnight tourists fell by 15.6 per cent along, and the number of travellers on same-day excursions dropped 14.3 per cent. Residents from countries other than the U.S. also fell 1.5 per cent, with overnight trips down 1.7 per cent and same-day visits down 0.8 per cent.
Canadian resident visitors returning to Canada through the province declined by five per cent in February. This was the third consecutive decline, with this one largely led by a decrease in those returning from the U.S. That figure fell 7.3 per cent to the lowest level since April 2023. In contrast, Canadian resident visitors returning to Canada from places other than the U.S. rose 4.5 per cent. This is the second consecutive monthly increase and the highest number since February 2020. Ongoing trade tensions with the U.S. have likely driven this shift, with more Canadians choosing alternative international destinations or staying within Canada.
The B.C. inflation rate slowed in March with year-over-year headline inflation at 2.6 per cent in March, down from three per cent in the previous month. Lower gasoline prices helped as they were down five per cent year over year. This was due to crude oil prices declining on a weak economic outlook and an increase in oil production from OPEC+. Inflation excluding gasoline was 2.9 per cent, the same as it was in February. And excluding food and energy, inflation was at 2.8 per cent, down from 2.9 per cent the month before.
Shelter price increases continued to slow, up by 3.7 per cent annually, down from a 4.3-per-cent increase the previous month. March marked the lowest year-over-year increase in shelter prices in over three years. Transportation prices increased by 1.7 per cent, down from 4.8 per cent, as inter-city transportation prices declined by 10.1 per cent. This was the first double-digit percentage decline since November 2023.
Food prices increased 3.3 per cent with food purchased from stores up 3.7 per cent. Meat prices rose 5.3 per cent and dairy products and eggs went up 4.7 per cent. Food purchased at restaurants saw prices rise by 2.9 per cent. This was the first full month after the end of Canada’s GST holiday, so most food inflation is now back to the trend seen before the tax break.
Bryan Yu is chief economist at Central 1.
