Moneris: The Growth Of Spending In Canada

John Gibson of CBC News discussed the rise of spending throughout Canada. The economy is currently in it’s second quarter of 2016 and across Canada spending has increased by approximately 5.53% on average since April, however, in Alberta spending has dropped by 2.9% as a direct result of the Fort McMurray wild fires. In Newfoundland and Labrador and Saskatchewan growth was slower between 0.99% and 2.3%. Ontario had the largest increase in spending with approximately 8.35% with Prince Edward Island close behind with a raise of 8.11%. This is the 7th quarter where there has been growth in the Canadian economy. Moneris, the company that processes all debit and credit payments in Canada has suggested that this growth will continue as tourism season

For example, when Canadians are spending more money they are able to help businesses grow. In turn these businesses will be hiring more people and these people will then be able to spend more money. The growth of spending begins a trend that will continue to help the unemployment rates to drop, people to have more disposable income and more profits for business. It is especially important for hospitality in Canada. Due to the fact that Moneris saw a growth in spending from foreign credit cards it can be seen that tourists are coming to Canada, and while they are here they are willing to spend money. This also demonstrates that the tourism industry in Canada is going to see a growth. With more people coming to Canada the various businesses that support the hospitality industry are going to see continuous growth. This impacts the hospitality industry in a big way because it encourages potential business owners, as well as current business owners to continue operations and opening new businesses. Furthermore, this growth and increase in spending in Canada can also help select businesses abroad. For example, Mariott is an American owned company, however, many Americans may choose to stay in a Mariott hotel while visiting Canada. This enables the American money to earn a small portion of profit off of that stay in Canada as well. While that impact is not huge, it is still significant enough that the growth in tourism in Canada will not only help Canadian companies but American companies as well. Overall, it can be seen that hospitality and businesses growth is positively influenced by economic growth. When the economy of a country is growing people will be more willing to travel, and locals will be more willing to spend money. In conclusion it can be seen that the increase in growth that the Canadian economy is currently experiencing is leading to a