The results are in: Tourism makes real economic sense for communities

Tourism isn’t just a fun industry; it’s a powerful economic driver that brings measurable benefits to communities and their residents.

For communities that embrace tourism, the opportunities are endless. Across the province, communities that invest in their visitor economiesare making more and paying less, while benefitting from incredible infrastructure and amenities that make their destinations a great place to visit, work and live. 

So, what does that mean? After comparing similar communities across the province, we found that those with strong visitor economies reaped countless rewards compared to their non-tourism counterparts, including:

• Lower residential taxes: Residents in tourism-driven communities pay up to 70% less in residential property taxes compared to those in non-tourism towns.
• Enhanced Amenities: Revenue from tourism supports better public services and amenities, including public transportation, parks, community centres, restaurants, cultural venues, and recreational opportunities.
• Increased Entrepreneurship: Tourism creates a steady customer base for local businesses, fostering a thriving entrepreneurial environment and boosting local job opportunities. In 2023, a tourism-driven community had nearly 200% more business licenses (new and renewals) than its comparable non-tourism-driven town.

For municipalities and businesses alike, the numbers are clear: investing in tourism is an investment in economic, social, and cultural development. It’s not just about attracting visitors—it’s about building stronger, more vibrant communities that benefit everyone involved.

Tourism subsidizes local life

Tourists contribute to municipal revenues by spending on goods, services and amenities from local businesses. As a result, thriving local businesses pay higher non-residential tax rates, strengthening local economies and enhancing residents’ quality of life. 

In addition to higher taxes, charges like parking and facility use generate around 30% of municipal revenues, easing the financial burden on residents.

This means that communities can pay for more programs and services, like public transportation, community events, recycling and composting programs, and more, without passing the costs on to local taxpayers.

A great place to work and live

Investing in tourism can help a destination become a place where people want to live, supporting sustainable business growth across all industries.

Today's top talent wants to live in vibrant communities with strong public services and amenities, public transportation, culinary and dining options, and year-round social and cultural activities. Attractive cities rich in amenities and things don't just attract tourists — they also make a destination more welcoming for entrepreneurs, investors, and businesses in other industries.

Tourism is an essential part of Alberta’s economic diversification story and can also pave the way for other industries to thrive.

Breaking down the numbers, an invitation to communities in Alberta

Tourism is good for business, good for families, and good for communities. It supports economic diversification and is a path to rural development—but it can only thrive if communities create the winning conditions for tourism growth.

Every community should seriously consider tourism as a central pillar of their economic strategy, and any community can create the winning conditions for tourism development by aligning tourism initiatives with broader community development plans.

By working together, municipalities can grow tourism in a way that supports residents’ priorities and preserves the character of the community. By prioritizing sustainable growth and year-round tourism, municipalities can build vibrant, resilient economies that benefit residents and visitors alike for generations to come.