Canada 365: Welcoming the World. Every Day. The Federal Tourism Growth Strategy

Message from the Prime Minister

With offerings like the Singing Sands of Prince Edward Island, Rocky Mountain ski adventures and Toronto's vibrant Caribbean Carnival, Canada is a top destination for international travellers. We take pride in opening our towns and cities to the world and showing off our country's beauty – from our coastlines to our lakes, rivers, forests, mountains, and everything in between.

We welcome millions of people each year with openness and optimism. Our values of diversity and inclusion help make Canada a destination of choice for people from around the world.

Our success is made possible by the many dedicated workers across the country. The tourism industry is booming, thanks in part to the people whose knowledge and expertise help visitors get the most out of their trip.

Today, as we introduce the new Federal Tourism Growth Strategy, we pave the way for Canada to continue attracting more visitors and we inspire more Canadians to experience the beauty our country has to offer. This strategy will help workers build the skills they need. It will improve hospitality services and invest in better infrastructure, while protecting the environment for generations to come.

This strategy was developed in consultation with a wide range of actors, including workers, small businesses, environmental groups, outfitters, tour operators, and more. The contributions of all those who participated are greatly appreciated. I would also like to thank Minister Boissonnault for his leadership and his commitment to the tourism sector, as well as all the workers and industry partners who work tirelessly to inspire the world to come to Canada, 365 days a year. There's always something new and exciting to do.

The Right Honourable Justin Trudeau, Prime Minister of Canada

Message from the Minister of Tourism and Associate Minister of Finance

Canada welcomes the world 365 days a year.

Our country offers something for everyone, from exploring Gros Morne National Park in Newfoundland and Labrador, to whale watching off the coast of Victoria, to dipping your toe in the Arctic Ocean, to watching the stars at Métis Crossing, to making snow angels at Frost Regina in minus 30 degree weather, to grabbing a room at the ice hotel during the Québec Winter Carnival.

Canada has it all: wide open spaces and bucket-list adventures, inclusive and welcoming hosts, francophone history and culture, unique Indigenous tourism experiences, and so much more!

As social beings, we have a fundamental need to connect. To build community. To find people who share our values. The visitor economy does just that: it brings people together.

The people who work in the industry – women, youth and seniors, Indigenous peoples, racialized Canadians, persons with disabilities, 2SLGBTQI+ people, and newcomers – are among the best in the world. And they can't wait to meet you.

The COVID-19 pandemic hit us hard – but we are resilient. And while the world is facing global changes in trade and geopolitics, this shift is at the heart of the resurgence of the tourism economy.

Because trade leads travel. More people coming to Canada to do business means more people exploring Canada while they're here. This is an unprecedented opportunity for communities from coast to coast to coast – large and small, urban and rural – to seize the moment. Our industry is moving from recovery to prosperity, creating jobs, driving economic growth, and helping communities to flourish once again – and we're just getting started.

Now more than ever, it's important that we come together – government, industry, communities – to power the economic engine that is tourism. That's why we've created the Federal Tourism Growth Strategy.

Canada 365: Welcoming the World. Every Day will chart a path to sustainable growth for generations to come, it will support good jobs and talent attraction, and it will make sure that international travellers continue to choose Canada over and over again.

Together, we can bring tourism to new heights and soar together.

Part 1: Where we are now

A new journey begins

In 2019, the federal government released a plan called Creating Middle Class Jobs: A Federal Tourism Growth Strategy, which identified that the Canadian tourism sector was not reaching its potential. Crucial gaps in public and private investment in core tourism assets and attractions meant that the sector missed opportunities to create good jobs that serve local communities and support families. The 2019 strategy outlined the need to extend the peak tourism season into the shoulder season and winter to help create more stability, attract a higher volume of guests, and diversify Canada's tourism assets. After hitting a benchmark year for tourism in Canada, we were on a course for growth.

When the pandemic hit in March 2020, grounding flights and halting the movement of people, the tourism sector in Canada and around the world had to pivot quickly to respond. Many more months of hardship and uncertainty followed while businesses struggled to keep afloat. Under these dire circumstances, we became acutely aware of the number of Canadians that depend on hospitality, restaurants, transportation, and attractions for their livelihoods and realized how integral the tourism sector is to our leisure, community, and identity. Recognizing the devastating effects of the pandemic on such an important economic sector, the Government of Canada provided considerable supports to help the sector begin to rebuild, most notably through the $500 million Tourism Relief Fund, among others. The sector was resilient.

Now it's time to build for the future with an actionable strategy, using 2019 as a foundation and taking lessons learned from the pandemic. Our world-leading country brand, natural wonders, dynamic and safe cities, and welcoming a multicultural society all point to a strong outlook for Canada's visitor economy. The new Federal Tourism Growth Strategy, Canada 365: Welcoming the World. Every Day sets a vision to harness the power of tourism to generate economic growth in communities across the country and drive the sector to the next level of international success.

Figure 1 - Text version

Year	Tourism Supported Jobs	Revenue	Tourism GDP	Tourism Businesses	Service Exports
2019	2,070,000	105,000,000,000	43,500,000,000	233,354	18.7%
2022	1,870,000	93,700,000,000	37,700,000,000	218,041	12.6%
Recovery to 2019 levels	90%	89%	87%	93%	-6.1 percentage points below 2019 levels
Sources: Statistics Canada. Labour Force Survey. Statistics Canada. Table 36-10-0230-01 Tourism demand in Canada, constant prices (x 1,000,000) Statistics Canada. Table 36-10-0234-01 Tourism gross domestic product, constant prices (x 1,000,000) Statistics Canada. Table 33-10-0661-01 Canadian Business Counts, with employees Statistics Canada. Table 33-10-0662-01 Canadian Business Counts, without employees Statistics Canada. Table 12-10-0134-01 Exports and imports of goods and services, quarterly, Canada, (NAPCS 2017) (x 1,000,000)

Tourism by the numbers: A cornerstone of Canada's economy

Tourism has made an encouraging comeback from the COVID-19 pandemic. By the end of December 2022, the number of tourism businesses had recovered to 93% of 2019 levels,^{Footnote 1} while jobs in the sector were back to 90% of pre-pandemic levels.^{Footnote 2} In total, tourism contributed nearly $38 billion to Canada's GDP,^{Footnote 3} generated $94 billion in revenue for businesses,^{Footnote 4} and accounted for almost 13% of our service exports last year.^{Footnote 5}

The visitor economy is one of Canada's top service exports. Global projections point to strong continued growth; one such forecast, from the World Travel and Tourism Council, indicates that tourism's contribution to Canada's GDP could double by 2033. This potential worldwide growth represents a tremendous opportunity.

In 2022, the tourism sector supported 1.9 million jobs across Canada. No other sector has an economic impact that reaches every region in the country.^{Footnote 6}

Some 218,041 businesses supported the visitor economy in 2022 ^Footnote7 and the vast majority were small and medium-sized enterprises.^{Footnote 8}

Figure 2 - Text version

Total Tourism Supported Jobs, 2019 vs. 2022

Year	Tourism Supported Jobs
2019	2,070,000
2022	1,870,000
Recovery to 2019 levels	90%
Source: Statistics Canada. Labour Force Survey.

Share of Tourism Supported Jobs by Industry

Tourism Industry	Tourism Jobs by Industry	Share of Tourism Jobs (%)
Food and Beverage Services	850,800	45%
Transportation	334,100	18%
Recreation and Entertainment	506,100	27%
Accommodation	142,800	8%
Travel Services	40,300	2%
Source: Statistics Canada. Labour Force Survey.

Number of Tourism Supported Jobs by Province

Province	Number of Tourism Jobs
Ontario	715,800
Quebec	392,100
British Columbia	326,200
Alberta	216,900
Manitoba	64,900
Saskatchewan	52,400
NS	46,200
New Brunswick	28,700
NFL	22,700
PEI	7,500
Source: Statistics Canada. Labour Force Survey.

Guiding principles: A strategy for a modern Canada

In a widespread effort to build back better and more inclusively, this strategy recognizes the important role that the visitor economy has to play in advancing progress for equity-seeking and marginalized groups. As such, there are key guiding principles and foundations that underpin the development of this strategy.

Equity, diversity, and inclusion

Canada's tourism sector is uniquely inclusive in its workforce. Racialized and 2SLGBTQI+ communities, youth, women, new Canadians, and Indigenous persons often find their first job in the visitor economy. In 2022, women and youth represented higher percentages of the tourism labour force than the overall workforce; as well, more majority owners of tourism businesses identified as women, racialized Canadians, or newcomers to Canada than in other sectors.

The federal government honours and supports official language minority communities. Canada's linguistic duality is a distinct feature of our history and society, and it creates ties with visitors from all over the world. Enhancing tourism in official language minority communities, as well as highlighting the multitude of languages spoken across Canada, helps to sustain and promote the vibrancy of those communities and cultures.

The tourism sector cannot grow without having a mindset to promote accessibility for everyone. Persons with disabilities not only contribute to the tourism workforce but also constitute a growing cohort of international travellers. This represents an emerging market that will only continue to grow as barriers to travel and tourism are addressed. As such, developers of future tourism destinations, and those upgrading existing ones, must be mindful about the need to ensure accessibility for all.

By supporting the visitor economy, we are also creating and maintaining jobs for equity-seeking groups and diverse communities across the country.

Reconciliation in action

This strategy serves as a way to strengthen Canada's partnership with Indigenous Peoples, whose cultures, histories, and traditional and unceded territories attract considerable interest from international visitors. Enhanced investment by and collaboration among federal, provincial, and industry partners will help position Canada as a top destination for authentic Indigenous tourism experiences. Participants in the consultations added that this approach would “provide an opportunity for cultural reclamation and sustainable economic development.”

In fact, authentic experiences led by Indigenous communities and enterprises are in high demand for international visitors because of their uniqueness. Investment in this high-growth segment also contributes to advancing reconciliation by creating the conditions for increased employment and economic growth. By sharing their cultures and approaches to environmental stewardship and extending their hospitality to the world, First Nation, Métis and Inuit communities and businesses can achieve increased prosperity, heritage preservation, and self-determination.

Sustainable and regenerative approaches

No matter their country of origin, global travellers increasingly consider their footprint when making tourism decisions. Responding to this market shift, tourism operators are now adopting greener practices across their offerings. Even further, there has been a surge in tourism activities that are founded on environmentally sustainable principles or regenerative approaches.

By welcoming more visitors in the shoulder and winter seasons and encouraging travel to lower-traffic regions and destinations, we can align Canada's visitor economy with sustainability and regenerative tourism goals and avoid the social and environmental impacts of over-tourism at certain destinations. Keeping the global climate and sustainability goals at the heart of the sector's recovery will ensure we are building a sector for the future.

A focus on rural Canada

Rural and remote tourism provides opportunities to experience the full measure of Canada's regions, including the Far North. In fact, tourism provides billions of dollars in revenue and accounts for 10% of local jobs in rural (non-metro) areas.^{Footnote 9} Visitors can stay at a working farm or ranch and learn about the rigours and rewards of rural life. They can gaze at the northern lights or join a dogsledding excursion. They can attend agricultural fairs; purchase local goods; and enjoy historical settings, cuisine, country environments, and opportunities for rugged adventures. For the communities, tourism can diversify and strengthen their economic base and viability as well as safeguard local culture, language and heritage. Businesses benefit from increased income from direct sales of homegrown and locally made products. Additionally, visitors want to participate in authentic Indigenous experiences, and 62% of Indigenous tourism businesses are in rural and remote areas.^{Footnote 10} Rural and remote tourism can be transformative, and many communities increasingly rely on the benefits of the visitor economy to grow their communities.^{Footnote 11}

Part 2: What we heard: The challenges to unlocking potential for growth

Consultations on the new Federal Tourism Growth Strategy

Through months of online and in-person public consultations, the Government of Canada heard from stakeholders across Canada: industry associations; workers and business owners; provincial, territorial, and municipal governments; Indigenous partners; destination marketing organizations; and Canadians from all walks of life.

We heard that we must take action now to set intentions and goals, leverage Canada's reputation, improve federal coordination, rebuild the tourism workforce, improve infrastructure and access, and promote sustainability. Addressing these persistent challenges will enable the tourism sector to unlock its potential for growth.

Prioritize tourism growth in Canada

Though being a major contributor to the Canadian economy, tourism activity has traditionally been an afterthought or a passive economic activity. Part of the problem is that the growth potential of the tourism industry is not well known or well defined. In fact, at a rate of 5%, tourism grew more than twice as fast as the national economy in the years leading up to the pandemic. There are a number of ways for government to help de-risk larger projects or facilitate access to capital, from direct business supports, to infrastructure investments, to financing from institutions like the Business Development Bank of Canada. And when we are facing uncertain economic times, it is even more pressing to stimulate investment in sectors with high growth potential. Adopting a more active and intentional approach to the visitor economy can help blaze the path for a more fulsome recovery and set a more strategic course for success.

Leverage Canada's brand

Canada is set up for success thanks to our world-renowned brand. Around the world, the maple leaf flag is known as a beacon of safety, inclusivity, and respect for human rights and international norms that underscores a stable, peaceful harbour in a time of global uncertainty. Canada's ranking in the Nation Brands Index 2022 is third in the world.

We heard that the tourism ecosystem is not doing enough to leverage our brand for the benefit of our communities. Currently, the majority of tourists to Canada visit during the peak summer months. To welcome more guests, we must expand Canada's tourism season into winter and shoulder months and enhance Canada's brand and presence in target markets.

In tourism segments such as business, sport, and cultural event hosting, Canada can be more proactive in bringing events to communities big and small. The country is also well-known for its natural spaces, authentic Indigenous experiences, and environmental commitment and stewardship. Communities and individuals that celebrate and promote diverse languages and cultural practices become an eager audience for festivals of film, music, and art. By leveraging Canada's strengths, other emerging areas of international interest will benefit as well, such as Canada's culinary gems and Michelin-recognized chefs, our growing craft breweries and wineries, and our regulated cannabis industry. An everyday embodiment of values of inclusivity, diversity, and intercultural exchange, the Canadian tourism ecosystem promotes our country as a destination of choice for a variety of international events and visitors.

Rebuild the workforce

The country needs a sustained and skilled workforce to propel the growth of the sector. Notably, tourism is a significant employer of youth, women, Indigenous peoples, new Canadians, and people of diverse backgrounds. In this way, expanding the tourism workforce fosters and promotes inclusive economic growth.

While the sector faced workforce challenges prior to 2020, the pandemic changed attitudes towards employment in a fundamental way. The halt in tourism during the pandemic caused many staff to look to other opportunities, worsening long-standing factors that prompted workers to exit the sector, such as uncompetitive wages, lack of affordable transportation and the high cost of housing in popular tourist areas. Despite mounting challenges, the sector has experienced a rebound in 2022 and 2023 – proof of its resilience and grit.

All orders of government, educational institutions, and employers must collectively change the narrative for this sector and the diverse skill set that powers it. Communities that have shifted to promoting tourism as a career of first resort have seen great success in the face of changing industrial priorities. The federal government can play an important coordinating role in advancing strategies that benefit the sector.

If we are to continue to benefit from the bounty of the sea, we have to rethink the way we use and manage it.

Improve infrastructure and modernize the travel experience

Canada has lots to explore, but promoting new and improved destinations will rely on the ability to get there safely and efficiently. For tourism operators and businesses, a lack of consistent or reliable supply chain hampers their ability to offer quality products and services. Vast distances, rugged geography, and seasonal weather conditions can make accessing many Canadian destinations challenging.

As access to some iconic Canadian destinations is inconsistent, or not yet developed, we must focus on a multi-modal transportation framework. Providing key markets with efficient and affordable air access to, from, and within the country and expanding new gateway cities to support more regions will ensure visitor numbers can grow. Trade leads travel. Acknowledging that Canada's trade priorities and tourism go hand in hand will help to secure more strategic air sector agreements. Modernizing and digitizing the travel experience at our airports and land borders, and primarily between our key markets and partners, is crucial for Canada to keep up with our international competitors – for instance, by advancing on uniformity measures for individuals with accessibility requirements so every visitor to Canada may have a consistent travel experience. Further, interprovincial motorcoach services, high-frequency rail between urban centres and light-rail transit within urban centres, as well as safe and reliable road infrastructure all provide the foundations for a seamless visitor experience in Canada.

Communities that offer tourism attractions will continue to seek improvements to roadways, bridges, basic infrastructure for parks and trails, and ports and piers to support the cruise industry. Other issues raised included adequate housing for hospitality staff, as well as high-speed broadband services, for temporary workers and lifelong residents alike. Investments in healthcare, childcare, and resource supply chains have a positive impact on the places we call home.

Promote sustainability

Finally, there is a pressing need to better align the visitor economy with Canada's climate change goals, such as achieving net-zero emission levels by 2050. Tourism activities have an environmental impact. The industry contributes to Canada's greenhouse gases and energy use, mainly due to emissions from air transportation.

There is a growing consensus among tourism stakeholders on the importance of embracing low-carbon pathways. Air transportation has improved its efficiency, and airlines are increasingly transitioning to more carbon-efficient fleets. As well, tourism businesses are placing an increased priority on reducing waste production and lowering water and energy consumption.

As an industry composed mainly of small businesses, there will be unique approaches to meeting sustainability goals while continuing to focus on day-to-day operations. To increase communities' abilities to adapt to climate change, improvements to buildings, sites, and destinations require assistance and coordination from many partners.

Every action, big and small, goes a long way to make the sector more resilient and contribute to the long-term prosperity of the sector and our planet.

Part 3: Strategic priorities

The new Federal Tourism Growth Strategy has been built on five strategic priorities. These priorities, identified after extensive consultations with partners across the ecosystem, will guide the Government's actions and partnerships with tourism stakeholders and other orders of government to grow Canada's visitor economy. By aligning efforts and investments in these key areas, we are homing in on our strengths to catapult the tourism sector forward in an increasingly competitive global market. In particular, the Strategy targets segments of the tourism sector with immediate high-growth potential to help Canada reach a set of ambitious goals and to improve our international standing.

As set out below, the priorities for the new Strategy, in no particular order, are:

• Invest in tourism assets
• Embrace recreation and the great outdoors
• Partner to grow Indigenous tourism
• Attract more international events
• Improve coordination through a Federal Ministerial Council

Figure 3 - Text version

Priorities

• Invest in tourism assets
• Embrace recreation and the great outdoors
• Partner to grow Indigenous tourism
• Attract more international events
• Improve Coordination with a Federal Ministerial Council

Invest in Canada's tourism assets

Canada has what the world wants – from wide open spaces and breathtaking natural wonders to diverse urban communities that are home to vibrant cultures and histories. Yet many of our most admired and best-known attractions require enhancements and upgrades, as well as support to digitize services and make physical attractions more sustainable and resilient to climate change. The shortfall in private and public sector investment in tourism assets impedes our ability to improve current attractions and build new ones.

Although Canada has recently gained ground in measures such as international arrivals and visitor revenue, the global tourism market has become fiercely competitive. Peer countries such as the U.S., United Kingdom, Australia, and France have launched their own post-pandemic strategies to boost their visitor economies. As the world is travelling again, Canada needs to focus on its key markets and build partnerships to attract travellers from overseas.

Over the decade leading up to the pandemic, tourism achieved more than twice the overall growth of the national economy. The annual GDP growth rate going forward is projected to be 4.9%, indicating a prime opportunity for increased support for the sector.

Visitor spending contributes to business growth and employment opportunities. Tax revenues maintain the public services and modern infrastructure on which Canadians rely. Tourism powers our communities large and small in urban and rural Canada. The time is now to invest in this sector. That is why our government is acting now to help attract and de-risk those investments and to facilitate access to capital for business owners.

Increase investment in tourism attractions

• Budget 2023 announced $108 million over 3 years to create the Tourism Growth Program (TGP) to assist communities, small and medium-sized businesses, and non-profit organizations to develop tourism projects and events. The Government of Canada's seven regional development agencies will deliver this program, given their mandate to promote regional economic development across all regions of Canada and given their extensive knowledge and experience supporting tourism businesses and organizations across their respective geographies.
• Government has a role to play to incent investments in areas that have historically lacked attention. The TGP will help leverage tourism opportunities in communities, including those that are rural and remote, based on regional contexts and in complementarity with existing federal, provincial, and territorial programs.
• The federal government also invests $96.5 million annually in Destination Canada to promote Canada's brand and assets internationally, provide key data and statistics on the industry, and assist in attracting significant business events.
• The federal government will work closely with our closest neighbour and largest international market, the United States, to improve and enhance tourism between our two great nations. As Canada gears up to co-host the 2026 FIFA World Cup tournament with the U.S. and Mexico, our collaboration will intensify and broaden. Given our shared border, Canada and the U.S. will partner to welcome the world and showcase our respective countries as premier destinations.
• High-quality, reliable, timely, and robust market data helps guide investment decisions. Destination Canada will stand up a new centralized, accessible, and secure platform for tourism data. This service will offer real-time, relevant tourism information and intelligence to governments, businesses, communities, and other partners across the tourism ecosystem.

Business Development Bank of Canada: Tourism support

BDC programs have made an impact in supporting the tourism sector, offering flexible terms, expert advice, and financing. As of March 31, 2022, the Bank had more than $3.7 billion in loans outstanding to the sector.

During the COVID-19 pandemic, BDC played a crucial role in supporting the tourism sector through its Highly Affected Sectors Credit Availability Program (HASCAP). In partnership with over 50 financial institutions, BDC provided support to the hardest-hit sectors, including tourism, accommodation, food service, arts and culture, and the airline industry. HASCAP offered a 100% guarantee to financial institutions, enabling them to extend loans of up to $1 million to eligible businesses, with low interest rates and extended repayment terms of up to 10 years.

Under HASCAP, $1.5 billion in loans were deployed to the tourism sector, representing more than 40% of total program activity. This support helped tourism businesses navigate pandemic challenges, enhance operations, and position for future growth.

BDC's financing and advisory services continue to play a vital role in bolstering the Canadian tourism sector, providing the necessary resources and guidance to help businesses thrive.

To learn more about how BDC's support for businesses, discover how this Nova Scotia entrepreneur grew her prepared meal service business and now sells her products in more than 150 grocery stores.

A selection of tourism investments by Canada's regional development agencies

Atlantic Canada Opportunities Agency (ACOA)
ACOA has supported businesses in the Bonavista Peninsula in Newfoundland and Labrador to pivot to tourism after the commercial fishery closed in 1992. In New Brunswick, projects funded included extending Fundy Trail Parkway to provide greater access to the Fundy National Park and Hopewell Rocks region from other coastal communities. ACOA also supported Mountain Bike Atlantic to promote the sport in the region and improve experiences for residents and tourists alike.

Canada Economic Development for Quebec Regions (CED)
CED's recent tourism investments included funding for the Interpretation Centre on Marine Mammals in Tadoussac to expand and modernize its displays. As well, financial assistance was provided to Le Monastère des Augustines, an 18th century historic site in the city of Québec, to develop Le Vivoir, a rest area offering a restorative wellness experience.

Federal Economic Development Agency for Northern Ontario (FedNor)
Over the pandemic, FedNor invested in 165 projects across Northern Ontario. For example, FedNor supported the Manitoulin Island Cycling Advocates to develop a self-guided tour app. In Northwestern Ontario, Mahkwa Lodge, owned by Lac Seul First Nation, received an investment to winterize and upgrade the facility to help expand its client base.

Federal Economic Development Agency for Southern Ontario (FedDev)
FedDev provided pandemic related support to Mādahòkì Farm, an Indigenous women-led tourism destination, to enhance its facilities, gardens, and programs as a four-season venue. The farm offers unique agritourism, farm-to-table dining, and authentic cultural experiences from an Indigenous perspective. Funding also went to Kitchener-Waterloo Oktoberfest to expand its duration, add new family and Pride events, and upgrade visitor facilities.

Prairies Economic Development Canada (PrairiesCan)
Among the investments made by PrairiesCan was funding for Tourism Swift Current for its work with emerging tourism sites to position southwest Saskatchewan as a destination. Fort Edmonton Park also received significant funding to create immersive, year-round compelling experiences, introducing visitors to First Nations, Métis, and Inuit worldviews through the Indigenous Peoples' Experience.

Pacific Economic Development Canada (PacifiCan)
PacifiCan provided funding to the Haida Nation for enhancing visitor accommodations and cultural tourism programming. Funding was also provided to Science World in Vancouver for infrastructure and gallery upgrades to increase visitation and position this iconic tourism asset for post-pandemic recovery. It is one of the largest destination attractions in BC.

Canadian Northern Economic Development Agency (CanNor)
In both the Yukon and the Northwest Territories, CanNor entered into 3rd party agreements for the delivery of funding for tourism operators. Funding was further distributed, by the Tourism Industry Association of the Yukon and the Government of the Northwest Territories, to tourism owners and operators to enhance and adapt their products, training, marketing activities, and operations in response to COVID-19 requirements and evolving markets.

Embrace recreation and the great outdoors

Canada boasts the unparalleled ability to offer year-round recreational experiences. Travellers are increasingly spending more on “adventure tourism.” Canadians themselves consistently show an interest in and an appreciation for parks, trails, and natural spaces in their vacation plans.

The pandemic brought sharply into focus the health benefits – mental, physical, and social – of getting outside. And beyond these personal dividends, enjoying the great outdoors can create a greater sense of environmental responsibility and connection to one's community.

Trails are also an important economic contributor to the tourism sector and local economies. Results of the 2023 National Léger Survey found that over one third (35%) of respondents spent money while using trails in the past twelve months. On average, those using trails spent $179, with 25% of users spending more than $200 per person.

By leveraging our natural landscapes, Canada can create regenerative recreational assets that build on Canada's brand as a premier outdoor, nature-based destination. Canada's growing network of trails, UNESCO World Heritage Sites, national and urban parks, and iconic destinations invite visitors to discover our rich urban spaces and remarkable rural and remote areas and communities. Fly-in hunting and fishing; snow-packed sledding trails; multi-day hiking, canoeing and camping adventures; and everyday “nature walks” get people into the great outdoors and sustain our rural communities.

A stepped-up focus on recreational tourism includes facilitating Canadian and international guests' access to natural spaces and helping disperse visitation both seasonally and geographically. It also provides an opportunity for a new Trails Tourism Strategy (see inset), supported by the Federal Tourism Growth Strategy, which will position trails as important assets among Canada's suite of outdoor experiences.

Canada's Trails Tourism Strategy

Attracting outdoor enthusiasts and adventure-seekers to Canada's trails promotes community development, employment, and cultural and historical preservation by increasing demand in local communities for food, lodging, equipment rental, tour guides, and other travel services. Canada's Trails Tourism Strategy will boost tourism by leveraging trails and related infrastructure and focusing on three key areas:

• High-quality inventory of trails – Ensure our trails are maintained and our parks have modern amenities and the capacity to handle larger visitor groups while minimizing impact to our natural spaces.
• Market readiness – Maintain and develop high-value experiences by encouraging the coordination and conservation of trails and surrounding amenities and training operators to be ready to welcome high volumes of visitors.
• Destination marketing and promotion – Leverage the resources and expertise of Destination Canada and other marketing avenues to promote local trails, neighbouring communities, and related services.

As all orders of government work together to develop trails tourism in Canada, future growth should be supported by:

1. Transparent governance structures to oversee trail development and maintenance, deliver connected services, and identify and connect with surrounding industries
2. Coordinated guest management and host plans to address issues such as wayfinding, signage, parking, accessibility, washrooms or other facilities, and emergency services
3. Accountability and governance requirements for assets that fall under the responsibility of multiple organizations. For example, landowners and trail stewards need to coordinate on trail maintenance so local communities can continue to benefit
4. Connection to amenities, infrastructure, and tourism providers to support the guest experience – this includes accommodations, food and beverage facilities and other services, such as equipment outfitters

Continued investment from all orders of government in the development of our trail networks is needed to help with development, ongoing maintenance, infrastructure improvement, and supporting services. Through Budget 2022, the federal government committed $55 million over 5 years for the Trans Canada Trail for maintenance and enhancement of its network. Tourism programs, such as Budget 2023's investment of $108 million for local community projects, will help promote recreational tourism, particularly through investments in trails inventory and infrastructure that is guided by the principles above, to grow the treasures and icons Canadians, and visitors to Canada, love the most.

Canada is an ocean nation, and coastal and marine recreation is also an essential driver for the tourism sector. Activities such as sea kayaking, sports fishing, and scuba diving, as well as Arctic and inland waterway cruises, play an important role in the prosperity and diversification of many coastal and waterfront communities. By leveraging our maritime tourism assets more strategically, the sector can increase its contribution to Canada's blue economy – using ocean resources sustainably for economic growth while preserving the health of ocean ecosystems.

Leverage recreational opportunities and Canada's great outdoors

• Tourism programs, such as the Tourism Growth Program, can help to increase investments in recreational trails and can work with partner programs to enhance our national parks, with the aim of attracting more international and domestic tourists to remote and rural parts of Canada.
• Parks Canada is committed to creating a network of national urban parks in Canada's large urban centres via partnerships built on a shared vision to conserve nature, connect people with nature, and advance reconciliation. Supporting this effort will further improve and diversify tourism assets for cities and provinces alike.
• Canada is strengthening the tourism-nature relationship by investing directly in infrastructure and natural assets. Investments ranging from improving local and regional trails with support from Parks Canada, to diversifying community infrastructure, to building capacity of rural services, all contribute to a better outdoors experience.
• Federal efforts will help mitigate the impacts of climate-related disasters, better protecting communities and strengthening the resilience of recreational tourism and ecosystem services.

Partner to grow Indigenous tourism

Before the pandemic, Indigenous tourism was the fastest growing segment in the Canadian tourism market, posting significant gains in job creation and contributions to Canada's GDP. Over half of its workforce identify as Indigenous. As such, many Indigenous businesses and communities have embraced this economic opportunity by developing new attractions.

Indigenous tourism offers visitors one-of-a-kind experiences to engage in the sharing of traditional knowledge, histories, stories, and cultural practices. Through these interactions and learnings, Indigenous communities can communicate and assert inherent rights while diversifying their economies for present and future generations.

Visitor surveys show a keen interest in authentic experiences led by Indigenous-owned businesses and organizations, particularly in the German, French, and British markets. A 2021 survey indicated that 1 in 3 international visitors wished to participate in Indigenous experiences while in Canada.^{Footnote 12} At the same time, most Indigenous tourism businesses operate in rural and remote parts of Canada, where visitor access can be challenging and costly. Meeting the anticipated demand for these unique tourism assets will require governments and industry to provide ongoing support and partnerships so that Indigenous tourism in Canada can gain even more international recognition.

Strengthen partnerships

• All orders of government have opportunities to enhance partnerships with Indigenous tourism organizations and Indigenous-owned businesses to ensure that Indigenous tourism is Indigenous-led.
• To boost the recovery of Indigenous tourism, Budget 2022 invested a total of almost $25 million in Indigenous tourism and created the Indigenous Tourism Fund.
• The new Tourism Growth Program, announced in Budget 2023, will further federal government investments in Indigenous tourism attractions through dedicated funding.
• The Government of Canada will continue its work to improve infrastructure, housing, healthcare, education, and economic, sustainable development and other opportunities for Indigenous communities.

Advancing economic prosperity, self-determination and reconciliation with First Nations, Inuit and Métis peoples is critical to Canada's future. Indigenous tourism can play an important role.

Attract more international events

People travel from far and wide to participate in major events – including conferences and conventions, sporting events, festivals, and cultural events – and once they arrive, they stay and explore. That is why people travelling specifically for business events typically spend twice what those travelling for leisure spend.^{Footnote 13}

Events happen all year round and across the country. An intentional approach to securing more international events as a four-season driver of travel will bring more visitors to our country and extend our tourism season. Canada has a proven track record of staging world-renowned events. As a northern country, we have the unique advantage of deep experience hosting winter festivals and games, from the Québec Winter Carnival to the 2010 Winter Olympics in Vancouver to Flying Canoë Volant in Edmonton and the Festival du Voyageur in Winnipeg.

Major events also bring visitors to less-frequented parts of the country, creating growth opportunities for communities big and small. Flagship industry conferences, supported and enhanced by world-leading academic institutions and associations, reinforce regional tourism ecosystems, increase trade, drive business growth, and entrench Canada's expertise in areas such as agri-food, manufacturing, artificial intelligence, energy, and so much more.

Host more international events

• The federal government will collaborate with communities, municipalities, and provincial and territorial governments to increase efforts to attract major events to Canada.
• Planning will begin now to secure events for the medium and long term, with a focus on events that drive seasonal and regional dispersion.
• Governments and the tourism industry will work together to ensure that communities across the country have what they need to be exceptional Canadian hosts.
• The 2023 federal budget announced funding to Destination Canada of $50 million over three years to attract major international conventions, conferences, and events to Canada. Destination Canada has identified sports and culture as part of its overall events strategy and will explore partnerships with other government departments to attract more international sporting and cultural events to Canada.

Improve coordination through a Federal Ministerial Council

The Minister of Tourism is mandated to ensure that Canada remains a tourist destination of choice. Supported by Destination Canada, and in partnership with the tourism and hospitality sectors, we can do much to welcome the world. Given the sector's intersectionality and breadth, these efforts also engage over twenty other ministers whose mandates and departments include essential policy and program instruments in the federal tourism toolkit. Prominent among them are portfolios with responsibilities for employment and skills, regional and national economic development, parks, transportation, immigration, border services, and housing.

By better coordinating policies and strategies across government, we can address many of the issues the sector has identified and best position for growth. For instance, to solve workforce, border, and transportation challenges, it is critical for the federal government to better coordinate across departments as well as between different orders of government. Better government coordination will help drive better, faster, and more prioritized tourism growth and investments.

Align government policies and programs to grow tourism

• The Government of Canada will establish a Ministerial Tourism Growth Council to align with international best practices such as those of the United States and France. It will help put the Federal Tourism Growth Strategy into practice and ensure a whole-of-government approach to tourism growth and the visitor economy.
• Through its coordinating role, the Council will elevate the activities of the Canadian Council of Tourism Ministers to the wider federal level, creating greater connectivity among federal, provincial, and territorial governments.
• In parallel, the Government of Canada will continue to support Destination Canada's NorthStar partnership network. It brings together Canada's top destination marketing and management organizations from across the country to increase visitation, spending, and investment.

Part 4: Ambitious measures for success

This strategy represents a once-in-a-generation opportunity for Canada's visitor economy to build back stronger and compete on the global stage.

Targets

The WEF Global Travel and Tourism Development Index ranks countries based on a set of factors and policies that enable the sustainable and resilient development of the travel and tourism sector. The Index includes measures relating to a range of drivers, including price competitiveness, transportation infrastructure, cultural resources, non-leisure resources, travel and tourism demand, and environmental sustainability.

Some of the levers that affect Canada's ranking reflect the work of sectors, partners, and governments outside the tourism sector. For example, safety and security and healthcare services contribute to Canada's score as a global destination. Canada's success in these rankings will represent the culmination of work across governments and sectors.

Recognizing that our competitor nations are also investing in tourism, collaboration among partners and stakeholders across Canada, both within and outside tourism, is critical to achieving these targets and restoring Canada's international standing.

The government will monitor and evaluate the Strategy over time. The Tourism Data Collective led by Destination Canada will provide relevant tourism information and intelligence.

Other measures of success

The Strategy will support and enhance the diversity and health of the sector through four guiding principles: provide support for Indigenous tourism, advance GBA+ analysis, address tourism's environmental impact, and support sustainable development goals.

Indigenous tourism

Indigenous tourism can be seen as a form of reconciliation in action. On the path to reconciliation, the federal government remains committed to working with First Nations, Inuit and Métis partners towards fulfilling the Truth and Reconciliation Commission's 94 Calls to Action. The Strategy will support the advancement of the Calls to Action, including:

• Education (7)
• Language and Culture (14)
• Commemoration (79)
• Sports and Reconciliation (90, 91)
• Business and Reconciliation (92)

Gender-based Analysis Plus (GBA+)

The Government of Canada is committed to reducing the barriers and inequities faced by many Canadians. To this end, the federal government has adopted a GBA+ lens to ensure that federal legislation, policies, programs and initiatives reflect and respond to the experiences of a diversity of Canadians.

Equity-seeking groups – including women, youth, 2SLGBTQI+ communities, newcomers, and racialized Canadians – form a significant proportion of the tourism workforce and are integral to the success of the tourism sector. The Strategy will continue to support GBA+ analysis and decision making that reduces potential barriers to participation of equity-seeking groups, including harnessing insights from statistical projects under way.

Environmental impact

In 2021, Canada increased its 2030 nationally determined contribution under the Paris Agreement to 40-45% reductions below 2005 levels by 2030 (445-408 Mt). In the same year, Canada enshrined into legislation its commitment to being net-zero by 2050 through the Canadian Net-Zero Emissions Accountability Act. In March 2022, the Government released the 2030 Emissions Reduction Plan (ERP), which shows a credible pathway to achieving Canada's enhanced 2030 target. The 2030 ERP includes ambitious and achievable measures to reduce emissions in each economic sector – from buildings, to transportation, to heavy industry and more – as well as other key enabling investments, such as in jobs and skills. Achieving net-zero emissions by 2050 is a whole-of-economy effort, and every sector, including tourism, has a role to play.

Collaboration with our partners and support for critical initiatives, such as the UNWTO's initiative Towards a Statistical Framework for Measuring the Sustainability of Tourism, will provide additional guidance on sustainability and establish tourism-specific targets.

Sustainable Development Goals

The Government of Canada has committed to advancing the 17 Sustainable Development Goals (SDG) established by the UN to address the most pressing social, economic and environmental challenges.

The UNWTO states that tourism can contribute, directly or indirectly, to all SDGs, but in particular it has been included in targets for inclusive and sustainable economic growth (SDG 8), and sustainable consumption and production (SDG 12), respectively.

To respect our commitments, we will ensure that tourism policies and programs align with the following SDGs:

• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 11: Sustainable Cities and Communities
• SDG 12: Responsible Consumption and Production
• SDG 17: Partnerships for the Goals

Annex 1 – Federal actions to support and grow Canada's visitor economy

The federal government's support for tourism is a clear commitment towards building a stronger, more inclusive, and productive economy for all Canadians. A number of federal departments and agencies are responsible for policies and programs critical to this effort and are committed to working together on many new initiatives outlined below.

Exploring Canada and accessing our world-class tourism destinations

At the heart of the tourism industry: Our businesses, our people, and our diversity

Economic reconciliation with Indigenous Peoples through tourism

Support for Canada's world-class festivals and events

Protecting Canada's Natural Wonders