Article content

Weakened economic activity in Calgary linked to the decline in oil prices is a key factor behind an estimated 7.3 per cent decline in business travel to the city this year, says a new report released Tuesday by the Conference Board of Canada.

“As the local economy improves next year, so too will the prospects for stronger tourism growth. In 2016, domestic business and pleasure travel are expected to grow by 2.4 per cent and 1.6 per cent respectively,” said the board’s Travel Markets Outlook.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Economy takes a bite out of business travel to Calgary Back to video

The report said that a dramatic decline in oil prices will lead to a projected drop of 0.5 per cent in real GDP in Alberta which is a key factor behind the fall in business travel this year.

Overall, overnight visits to Calgary are estimated to rise by 0.1 per cent this year and 2.5 per cent next year.

The board is forecasting overnight visits in the business sector to climb by 2.4 per cent in 2016.

Domestic travel is estimated to drop by 0.9 per cent in 2015 and rebound with two per cent growth in 2016. The pleasure category will see increases of 0.8 per cent and 1.6 per cent.