Key success factors
Countries that prioritize tourism as a core economic strategy see significant returns in the form of GDP, employment, and direct investment.
Perception
Tourism is not investor-grade.
Reality
Tourism creates a positive feedback loop of visitation-spend-investment.
It drives benefits throughout the economy.
Tourism's true impact
Tourism is worth the investment. The visitor economy has a far-reaching impact on not only on the communities but the broader province and other sectors.
However, while tourism’s contributions on GDP and employment are well documented, there is a gap in research on tourism’s impact on foreign direct investment (FDI) and exports. The result? Tourism continues to be underrecognized as a major driver of long-term economic growth in Canada.
To understand the true impact of tourism in Canada and around the world, we partnered with Deloitte LLP to conduct a rigorous analysis using public available data for Canada and Alberta.
Tourism’s supercharger effect on the economy
Tourism initiates a powerful economic cycle. Dollars that flow into a destination through tourism continue to circulate, generating lasting economic benefits. Many visitors stay connected after they leave by continuing to buy Canadian products or investing in Canadian companies. That’s why tourism is an engine for long-lasting growth.
A new economic model
Deloitte’s independent econometric modelling looks at the relationship between tourism, GDP, exports (goods sold to other countries), and FDI (money from other countries) over time.
This model doesn’t only look at what happens right away when tourists spend money, it also shows how that spending leads to bigger changes later. For example, when international visitors spend money in Canada, it helps local businesses, which can lead to more jobs, more trade, and more investment from other countries.
Deloitte’s model also tests what would happen if more tourists spent more money. It demonstrates how a strong and healthy tourism sector could have massive economic benefits to the entire economy, not just hotels and restaurants.
$1B increase in international tourism spending would generate
Key finding
Countries that outperform Canada treat tourism as a strategic priority
Aligned all-of-government approach
When governments actively support tourism—through infrastructure, marketing, and cross-sectoral coordination—they generate a powerful feedback loop of growth.
Regional and year-round tourism
Encouraging travel to less-visited regions and outside peak seasons helps distribute benefits more evenly and supports local economies throughout the year.
Economic diversification
By expanding the economic base beyond traditional sectors like resource extraction or manufacturing, tourism creates new revenue streams and enhances resilience.
Coordinated, development-friendly policies
Countries that strategically align tourism with investment, trade, and economic development policy are seeing significant returns in the form of sustained growth, increased resilience, and broader prosperity.
Public-private collaboration is essential
Australia’s record high $63.4 billion tourism investment pipeline, driven by public-private partnerships and government incentives, illustrates what’s possible. Canada can attract more FDI by creating a robust tourism investment framework.
Let's unlock tourism's potential
A path forward
Canada needs to treat tourism as a strategic priority. The means:
- Align federal, provincial, and local efforts around a shared tourism investment strategy
- Reduce barriers through regulatory reform and improved access to capital
- Establish federal incentives to attract tourism-related investment
