A one per cent increase in international visitors to Canada will
add CAD$1bn in exports according to a new study, further cementing the link
between tourism to trade.
The new research, from Destinations International, shows
the impression a country makes on inbound tourists – both leisure and business
- can affect its future prosperity.
Analysing more than 20 years of data, the study, carried out
by EY-Parthenon, shows that a small increase in visitors to Canada translates
into $1.06bn in additional Canadian goods and services exports over a two-year
period, beyond the export of tourism services themselves.
The study - The
Impact of the Visitor Economy on Canadian Exports - built on earlier studies
showing a causal link between visitors and exports to focus on solely on Canada.
While tourism is frequently discussed in terms of jobs and
visitor spending, this study demonstrates that its impact may extend beyond
hospitality to serving as a strategic enabler of trade, investment and broader
economic development. Conferences and business events act as platforms for
deal-making, partnerships, and sector growth, while visitor-driven air service
development establishes trade corridors that benefit export-oriented industries.
“The visitor economy is not a standalone sector; it is a
platform for economic growth,” said Don Welsh, president & CEO of
Destinations International. “This research validates what destination leaders
have long understood in practice: that attracting international visitors helps
build relationships, strengthen Canada’s global reputation and create the
conditions that drive exports, investment and long-term prosperity for
communities across the country.”
“Our report suggests that the visitor economy can be a
strategic driver of Canada’s broader economic performance,” says Mauricio
Zelaya, EY-Parthenon Canada Partner & National Economics Leader. “Beyond
tourism, it has the potential to fuel global engagement, strengthen Canada’s
reputation abroad and contribute to trade and investment outcomes that support
long-term prosperity across the country. Recognizing and acting on this
opportunity is increasingly a strategic imperative for Canada’s growth and
competitiveness.”
The study suggests that destinations successful in
attracting visitors could also be better positioned to attract business
capital, skilled talent, new residents and the expansion of export-driven
industries. By viewing the visitor economy as a foundational element of
economic strategy, policymakers could unlock broader returns on destination
promotion.
