September 27 marks World Tourism Day. For Canada, the theme “Tourism and Sustainable Transformation” could not be more timely. Tourism generates $130 billion in annual spending, accounts for 2% of GDP, and employs 10% of the national workforce. It sustains 265,000 businesses across more than 5,000 communities, anchoring local economies from coast to coast to coast.
And yet despite its scale and reach, tourism is too often treated as an afterthought in Canada’s policy conversations about competitiveness and future growth. Few industries touch as many communities, create as many jobs, or generate the same breadth of impact. It is time to recognize tourism for what it is: a cornerstone of Canada’s economic future.
Driving Prosperity Close to Home
Tourism fosters prosperity where it matters most: close to home. Across Canada, thousands of local restaurants, accommodations, tour operators, and cultural attractions rely on visitors. These businesses are often the backbone of their communities and among the largest local employers.
The impact of each visitor dollar extends far beyond the sector itself. Tourism spending supports agriculture, retail, transportation, and the arts. In fact, for every dollar of tourism spending, 27 cents is generated in government tax revenue, which supports investments in public services and infrastructure that are an essential part of Canadians’ daily lives, including hospitals, schools, and transit systems nationwide.
Investing in tourism is not only about welcoming visitors; it strengthens local economies. It bridges our diverse cultures and ensures that when tourism thrives, so do our communities—urban and rural, northern and Indigenous alike.
The tourism multiplier effect is rooted in place. Every traveller who comes to Canada creates a ripple of economic activity. Airlines and transit systems move more passengers, conference and performance venues attract capacity crowds, artisans are supported by a greater number of patrons, and restaurants fill their tables.
The local experiences, cultural connections, community events, and attractions that form the heart of tourism cannot be outsourced or offshored. In an age of global uncertainty, Tourism remains a stable, inclusive driver of opportunity across the country.
Nation Building and Infrastructure
Earlier this month, Prime Minister Mark Carney was right to remind us that if we want stronger careers at home and booming exports abroad, we must once again be a country that builds.
Infrastructure is a vital component of Canada’s nation-building. From the Canadian Pacific Railway at Confederation, which bound the East to the West, to the highways, ports, and airports that followed, bold projects have always driven national growth and cohesion. Today, we face another defining moment. Global and economic shifts demand that Canada once again think big and act fast.
Tourism belongs at the heart of this vision. Modern tourism infrastructure, such as airports, multimodal transportation corridors, and climate-resilient facilities, has the power to unite regions, open new corridors, and extend economic prosperity to all reaches of the country.
A national, interconnected multimodal transportation strategy would move people and goods more efficiently, open access to rural, northern, and Indigenous regions, reduce emissions, and strengthen Canada’s economic resilience to external global volatility. When we implement such a strategy, the benefits go far beyond an improved visitor experience. It will invigorate the economy of every Canadian community and secure Canada’s competitiveness on the international stage.
Tourism gives Canada a reason to build once more. These projects create jobs for today and tomorrow, advance sustainability, and set Canada up for a stronger, greener, more connected future.
Breaking Down Barriers to Investment
To build boldly means thinking beyond the pouring of concrete. We must break down the barriers that prevent critical investment in our economy.
In August, the Tourism Industry Association of Canada submitted its pre-budget brief to the Finance Committee. It outlined recommendations that call on government to adopt a more competitive investment environment to reduce barriers to investment and expand international marketing efforts.
First, greater investment in capital-intensive tourism projects can easily be incentivized through a simple, yet impactful, change to our capital-gains tax policy. Allowing for the deferral of capital gains tax when investors reinvest asset sale proceeds into a different form of capital property will create a significant driver of reinvestment into new and revitalized tourism assets and business projects. By allowing deferrals, investment remains in the sector, driving modernization, fuelling projects that boost economic development, and growing our export market.
Second, introducing accelerated CCA rates for a defined class of capital-intensive tourism projects, including accommodations, venues, attractions, and transportation infrastructure, is crucial to modernizing the sector. The current slow depreciation rules discourage bold investment in cleaner, greener technology. Accelerating these rules reduces the risk to modernize, boosting competitiveness while advancing our climate commitments.
From investing in infrastructure to boosting international marketing efforts, these recommendations ensure that all communities benefit from the growth of the tourism sector. They will create jobs and export opportunities throughout all regions of Canada.
A Call to Build Boldly
Global tourism has rebounded and is, in fact, growing more quickly than most other sectors. Countries around the world are looking to capitalize on this trend. This is Canada’s opportunity to align political will with industry action. As the Prime Minister has emphasized, economic affluence requires the courage to “build big, and build fast.” Tourism can support that call to arms through infrastructure that connects, policies that incentivize investment, and projects that will bolster employment.
TIAC’s recommendations to the government impact more than a single sector. They strive towards a more competitive economy, a stronger base for exports, and a burgeoning wealth shared among the communities of Canada.
Tourism is about discovery—new places, cultures, and experiences. As countries around the world look to gain an economic advantage, Canada must look for opportunities at home.
The world is ready to come to Canada. With vision and commitment, Canada can meet them with a tourism sector that embodies our inclusivity and our determination to build.