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Canadian groups release new economic impact analysis

Canadian groups release new economic impact analysis

RICHMOND, British Columbia — The Recreation Vehicle Dealers Association of Canada and the Canadian Recreational Vehicle Association (CRVA) are releasing an updated study, showcasing the economic impact of the Canadian recreation vehicle industry.

The study, conducted by The Portage Group Inc and urbanMetrrics Inc., showcased that in 2017 the RV sector generated an estimated 66,000 jobs and delivered $4.7 billion in added value to the Canadian economy from an initial expenditure of $6.1 billion.

“The purpose of the 2018 Economic Impact of the Canadian RV Industry is to update the estimate of the level of economic activity supported by the RV industry in Canada,” said Jean-François Lussier, RVDA of Canada chairman of the board.

“The findings show that not only does RVing continue to be an exceptional way to travel, but it also has a considerable impact on the Canadian economy,” Lussier added “Our updated study also reveals that approximately 2.1 million (or 15 percent of) Canadian households own an RV which is up from years prior.”

“The economic activity generated by the RV industry is considerable and multi‐faceted. It includes manufacturing, sales and service of RVs as well as, expenditures to use, store, maintain and travel in RVs” stated CRVA Chairman, Jeff McDermott. “The study reveals that expenditures associated with RV ownership and use account for 78% of the total value added to the Canadian economy.”

In order to determine the level of economic activity supported by the RV industry in Canada, the impacts of RVs were broken down through four distinct domains. Key findings are outlined below:

RV Manufacturing

The total value of recreation vehicles manufactured in Canada was approximately $470 million in 2017. Of this total production value, some $376 million — or 80 percent — was exported to markets outside of Canada, with the balance representing domestic consumption of locally-made RV products.

As detailed below, the value of recreation vehicles manufactured in Canada in 2017, including direct, indirect and induced impacts—generates significant value for the Canadian economy. That includes:

  • $355.3 million in value added to the Canadian economy.
  • 5,400 full-time years of employment.
  • $229.3 million in labor income across Canada.
  • $88.7 million in tax revenue to municipal, provincial and national governments, in the form of personal tax, corporate tax, and other taxes.

RV Retail Sales and Service

The total value of recreation vehicles sold and serviced in Canada in 2017 was approximately $3.4 billion. In calculating the economic impact of RV retail activities, however, it is important to note that only the gross retail and wholesale markup components represent the unique contributions of retail sales and service activities.

As detailed below, the value of recreation vehicles sold in Canada in 2017 generated:

  • $681.4 million in value added to the Canadian economy.
  • 10,300 full-time years of employment.
  • $432.0 million in labor income across Canada.
  • $149.3 million in tax revenue to municipal, provincial and national governments, in the form of personal tax, corporate tax, and other taxes.

Non‐Travel Related RV Expenditures

Overall, total non-travel related recreation vehicle expenditures for 2017 are estimated at some $1.7 billion. This substantial spending on items such as storage, insurance, as well as other equipment and accessories (excluding repairs) yields a significant economic impact across Canada. That includes:

  • $1.5 billion in value added to the Canadian economy.
  • 17,900 full-time years of employment.
  • $830.9 million in labor income across Canada.
  • $571.9 million in tax revenue to municipal, provincial and national governments, in the form of personal tax, corporate tax, and other taxes.

Tourism Related RV Expenditures

RV owners spent a total of approximately $3.3 billion on various goods and services while travelling throughout Canada in 2017. This spending generates a significant benefit to local municipalities, the provincial/territorial economies, as well as spread more broadly across Canada at the federal level. That includes:

  • $2.1 billion in value added to the Canadian economy.
  • 32,300 full-time years of employment.
  • $2.7 billion in labor income across Canada.
  • $1.1 billion in tax revenue to municipal, provincial and national governments, in the form of personal tax, corporate tax, and other taxes.

In sum, the RV sector stimulates economic activity and creates jobs for Canadians across the country, the release noted. Across all four subsectors, total RV industry expenditures for 2017 have been estimated at approximately $6.1 billion.

Moreover, the Canadian RV industry was a significant driver of tax revenues, with the industry contributing $1.9 billion in tax revenue to municipal, provincial and national governments, in the form of personal tax, corporate tax, and other taxes.

SOURCE: RV Dealers Association of Canada press release

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About Greg Gerber

Greg Gerber is a freelance writer and podcaster who has been writing about the RV industry since 2000. He is the former editor of RV Daily Report.

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