TORONTO — Tourism spending has dropped by almost $1 billion since the SARS outbreak in six of Canada's biggest travel markets, according to a survey by KPMG.

And the tourist industry now faces the impact of a rising Canadian dollar, which makes Canada a more expensive destination for foreign travellers.

Still, there are indications that the gloomy trendline has bottomed out, says Jeff Dover, director of KPMG's hospitality, leisure and tourism practice.

"We're not out of the woods, but we're heading in the right direction," Dover said in an interview.

The consulting firm tracks tourism in Toronto, Niagara Falls, Ottawa, Montreal, Calgary and Vancouver.

Since the outbreak of severe acute respiratory syndrome in March, tourist spending in the six cities has dipped by $993 million, according to KPMG.

The firm estimates this number in part by tracking hotel and motel bookings, then combining that with Statistics Canada's estimate of how much each guest spends per day.

The six cities tracked contain 35 per cent of Canada's hotel and motel rooms.

In the Greater Toronto Area, this year's tourism spending compared with last year's has crashed by $503 million, or 28 per cent, since the first SARS outbreak.

Also hard hit has been Niagara Falls, Ont., where spending is off by $142 million or 28 per cent, says KPMG.

Spending has declined $135 million or 12 per cent in Montreal, $18 million or four per cent in Ottawa, $44 million or nine per cent in Calgary and $154 million or 13 per cent in Vancouver.

The tourism industry shouldn't expect quick relief, Dover warned: "We have a little hangover still going on."

That's partly because businesses and organizations cancelled events scheduled months in advance when SARS first hit.

On the flip side, many events were rescheduled for the latter half of 2004 and into 2005, so advance bookings look healthy six to 18 months in the future.

KPMG notes that SARS isn't the only factor in the tourism decline.

Mad cow disease, uncertainty in Canada's airline industry and tougher security at the U.S. border have all played a part in the decline, Dover said.

Border crossing issues are a big factor in Niagara Falls, he said. U.S. visitors who used to slip across to Canada and back with ease now worry they'll get tied up in long waiting lines at the border.