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Tourism Powers Canada – It’s Time to Step Up!
Tourism Businesses are Canadian Businesses!
"Tourism isn’t just an industry. It’s the heartbeat of our communities and a powerful economic engine. It fuels local businesses, supports thousands of jobs, and enriches the cultural fabric of Canada. As we navigate economic uncertainty, now more than ever, we must ensure tourism gets the recognition and investment it deserves." - Darren Reeder, President & CEO, Tourism Industry Association of Alberta (TIAA)
Tourism is a cornerstone of Canada’s economy, driving growth, innovation, and cultural exchange. From accommodations and restaurants to transportation, retail, and experiences, the sector touches nearly every aspect of daily life. Despite its vast impact, tourism is often overlooked in policy discussions, funding decisions, and workforce planning.
As Canada moves into election mode, it’s crucial that tourism remains a top priority. With shifting economic conditions—U.S. tariffs affecting Canadian businesses, a weakening dollar influencing travel patterns, and growing momentum for ‘Buy Canadian’ policies—the industry stands at a crossroads. These factors present both challenges and opportunities, making strong advocacy more important than ever.
This guide is designed to help business owners, operators, and workers within the tourism economy engage directly with decision-makers—ensuring they recognize tourism as an essential driver of Canada’s prosperity.
Why Telling Your Story Matters
Numbers tell a story, but people remember experiences. Your business isn’t just about transactions—it’s about community, livelihoods, and culture. A candidate can read a report, but nothing replaces hearing firsthand from the people who make tourism thrive.
Best Practices for Amplifying Your Advocacy Message
Host Candidates One-on-One
Forget generic photo ops. Invite candidates to sit down at your business, walk them through your operations, and give them real insight into the challenges and opportunities of tourism. A one-on-one meeting builds relationships, not just visibility.
Establishing trusted relationships with candidates should be a priority for Canadian businesses this election.
Tell a Compelling Story
Numbers impress, but personal stories stick. Share how business has shaped your life, provided jobs, and strengthened and enriched your community.
Leverage Partnerships and Digital Advocacy
- Industry Associations should be your primary resource as trusted sources of industry statistics and active election issues.
- Support and share election materials with candidates from trusted sources and use social media strategically to amplify success stories.
- Publish opinion pieces in local newspapers emphasizing the role a thriving business and tourism economy play in your community.
- Use social media strategically to amplify success stories and advocacy pieces from trusted sources.
- Participate in town halls, forums, and roundtables.
Advocacy Priorities for Federal Candidates
Federal Minister for Tourism – A Seat at the Table
Why?
Tourism is one of Canada’s largest economic drivers and thrives with dedicated leadership at the federal level in support of the federal tourism strategy which calls for a 40% increase in tourism output by 2030.
Action
Reinstate a Federal Minister of Tourism to ensure the sector receives the coordinated support it requires in support of the federal tourism strategy which calls for a 40% increase in tourism output by 2030.
Air Competitiveness: Immediately commit to a review of all fees and taxes to improve competitive position of air carriers, while abandoning efforts to advance proposed Airline Passenger Protection Regulations (CG1 regulations).
Allocation of Resources to Execute the Federal Tourism Growth Strategy
Why?
To support the strategic goals outlined in Destination Canada's "Tourism 2030: A World of Opportunity,"
Action
- Invest in Tourism Assets. Allocate funding to enhance and develop tourism infrastructure, attractions, and services to meet evolving visitor expectations and increase Canada's competitiveness as a top global destination.
- Embrace Recreation and the Great Outdoors. Support initiatives that promote Canada's natural landscapes and outdoor activities, catering to the growing demand for nature-based tourism experiences.
- Partner to Grow Indigenous Tourism. Collaborate with Indigenous communities to develop and promote authentic cultural tourism experiences, fostering economic growth and advancing reconciliation efforts.
- Attract International Events. Invest in bidding for and hosting major international events to elevate Canada's global profile, enhance international soft power, strengthen relationships, stimulate economic activity, and showcase the country's diverse offerings.
- Improve Federal Coordination. Enhance collaboration among federal agencies, provincial and territorial governments, and industry stakeholders to streamline policies, share data, and align marketing efforts for a cohesive national tourism strategy.
Workforce & Housing Solutions
Why?
The #1 issue facing tourism businesses is the labour shortage. Workers need housing, stability, and pathways to long-term careers.
Action
- Address workforce housing shortages through federal-municipal collaboration.
- Expand Post-Graduate Work Permit (PGWP) eligibility to tourism and hospitality graduates.
- Invest in career pathway programs to attract young workers into tourism.
Competitiveness & Accessibility
Why?
Canada’s tourism competitiveness is weakened by some of the costliest airfare fees and taxes in the world, limited and sometimes slow visa processing, and transportation infrastructure gaps.
Action
- Streamline visa processes to increase visitor access.
- Support airline and airport policy reforms to increase market competitiveness.
- Action: Support national investments into multimodal transportation
Understanding the Tourism Economy and Why It Matters to Canadian Businesses
“You may not think of your business as part of the tourism industry—but if visitors spend money at your establishment, you are.”
The Visitor Economy is more than just hotels, tour companies, and travel agencies—it’s every business that benefits from domestic and international travelers spending money in Canada. From the local café to the gas station on a major highway, tourism spending ripples through entire communities, driving job creation and local economic growth.
What is the Visitor Economy?
The Visitor Economy refers to all economic activity generated by visitors, whether they are tourists, business travelers, or even locals taking a trip within their own country. This includes spending on:
- Accommodations – Hotels, motels, lodges, bed & breakfasts
- Food & Beverage – Restaurants, cafés, bars, food trucks
- Transportation – Airlines, car rentals, taxis, buses, ferries, trains
- Retail & Shopping – Local shops, craft stores, markets, malls
- Attractions & Experiences – Parks, museums, concerts, festivals, sports events
- Services – Spas, wellness centers, guided tours
Each dollar visitors spend supports multiple businesses, creates jobs, and contributes to local tax revenues. This spending keeps communities vibrant, supports infrastructure, and benefits businesses well beyond traditional tourism industries.
Visitor Economy is Critical for Canadian SMEs
- 98% of tourism businesses in Canada are small and medium-sized enterprises (SMEs).
- Every $100 spent by a visitor generates an additional $67 in economic activity.
- Tourism is Canada’s largest service export—it generates billions in foreign spending, bringing new money into local economies rather than just circulating existing funds.
- Tax revenues from visitor spending support public services like healthcare, transportation, and emergency services.
Who Needs to Understand the Tourism Economy?
Many business owners don’t realize how much of their revenue comes from visitors. If your business serves customers who:
- Travel more than 40 km from home (Canada’s tourism definition),
- Are from another province,
- Are international visitors,
- Attend local events, conventions, or festivals...
…then your business is part of the Tourism Economy!
Election Resources
TIAA encourages all tourism businesses and operators to take advantage of the Tourism Industry Association of Canada’s (TIAC) Election Toolkit, available here.
- Candidate Information - Election Canada
- Alberta's Visitor Economy - The Economic Significance of Travel in Alberta (One Page Infographic)
- Tourism Impacts by Federal Riding (Alberta Riding Information Sheets)
Political Party Platforms
Quick Facts
Canada’s Tourism Sector (2023)
- $113.4 billion in total tourism spending.
- Destination Canada has set an achievable goal of 160 billion in tourism revenues by 2030
- $73.5 billion in domestic tourism (Canadians traveling within Canada).
- 98% of tourism businesses are SMEs, meaning tourism is local business.
- 27% of visitor spending goes directly to government revenues.
- U.S. visitors spending $12.9 billion, while overseas visitors spent $12.6 billion.
Alberta’s Tourism Economy (2023):
- $12.7 billion in visitor expenditures. (up 19% over 2022)
- The Government of Alberta has set an ambitious goal of doubling tourism revenues to $25 billion by 2035
- 25,814 tourism SMEs, employing 255,000 Albertans.
- $1.5 billion in tax revenues.
- Successful execution of Travel Alberta’s Bootstrap Strategy recovered and grew International visitor spending, now up 25% since 2019.
Tourism in a Shifting Trade Landscape
The Tariff Impact: A New Reality for Canadian Businesses
- The recent 25% U.S. tariffs and uncertainty related to future tariffs are already affecting supply chains, pricing, and consumer confidence.
- Canadian travelers, once eager to visit the U.S., are now reconsidering their plans, opening opportunities for domestic travel growth and non-US international markets..
- The U.S. Travel Association has raised concerns that these tariffs could lead to a decline in Canadian visitors, impacting their $20.5 billion in tourism spending in the U.S.
- While some U.S. destinations are worried, others are doubling down on efforts to attract Canadian visitors.
- Silver Lining: Canadians are increasingly looking inward, supporting local businesses and advocating for the removal of interprovincial trade barriers to strengthen the domestic economy.