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The Tourism Industry Association of Canada (TIAC) recently submitted its recommendations for Budget 2025 to the House of Commons’ Standing Committee on Finance (FINA). Following a comprehensive consultation with members and key stakeholders, including the Canadian Destinations Leadership Council (CDLC), TIAC identified eight priority themes and shared 14 recommendations with FINA with the objective of stimulating economic growth and productivity, and, ultimately, fortifying the global competitiveness of Canada’s tourism businesses and travel destinations.

Tourism is a key economic driver in Canada, producing significant returns to government. In 2023, tourism spending reached $113.4 billion and, each year, government revenue from tourism activity equals roughly 27% of visitor spending.

This is a critical juncture for Canada’s tourism sector, which has experienced a prolonged path to recovery since the pandemic but is eager to embrace opportunities for further development. Destination Canada’s recent Tourism 2030 strategy indicates real potential for transformative growth in the years ahead. Achieving its projected $160 billion in demand by 2030 will require bold new initiatives to support our sector’s entrepreneurs, bolster the tourism ecosystem, and strengthen Canada’s visitor economy in destinations nationwide.

To that end, TIAC has identified the following recommendations and key government investments that will enable the industry to build on its current momentum and instigate heightened tourism demand among domestic and global travellers.   

Expand Canada’s Destination Marketing Capacity TIAC is asking the Canadian government to bolster support for Destination Canada's vital marketing and industry-building initiatives through an increase to its annual base parliamentary appropriations. Immediate investment in Destination Canada is a powerful step towards revitalizing our economy and reconnecting communities in the wake of the pandemic. Support of this sector fosters job creation, stimulates local economies, and showcases Canada's rich cultural and natural beauty. By enhancing tourism marketing, we attract diverse visitors, contributing to sustainable growth and shared prosperity.

Expand Connectivity Across Canada

Connectivity is key to tourism growth. Unfortunately, the need for strategic planning and investment in new transportation systems, technological innovations, expanded fleets, and comprehensive route development spans industries and regions.

Investment is needed to expand crucial routes that link travellers and communities, develop and sustain more affordable travel options, and to ensure that more visitors can reach and enjoy our country's diverse tourism destinations.

A national, multi-modal transportation strategy will expand connectivity, enhance rural/urban connections, and improve traveller access to and throughout Canada while stimulating growth in tourism hubs and local economies.

Invest in Tourism Assets and Infrastructure Investment in tourism infrastructure throughout Canada is needed. This includes airports, ports and terminals, accommodations, conference and event venues, and attractions. For destinations to remain competitive, government must support the sector’s capacity to secure increased investment, particularly from private capital markets at both domestic and international levels. TIAC is calling for a dedicated Tourism Infrastructure Fund and an incentive tax credit to support major capital projects in the sector.

Invigorate Canada’s Business Events Sector

Destination Canada’s Fall 2023 Tourism Outlook raised the alarm that Canada’s business-events sector—a key economic driver across the country—will not fully recover to 2019 levels until 2028. To expedite the sector’s recovery, Destination Canada received a three-year budget allocation in 2023 to support bids to host major international conventions in Canada via the new International Convention Attraction Fund (ICAF). The federal government must build on this momentum and extend this financial support to Destination Canada via the ICAF by an additional two years.

Expedite Entry for International Visitors

Expedited entry procedures will incentivize the return of nearly four million international visitors to Canada. Expanding the number of countries that are part of Canada’s Electronic Travel Authorization (eTA) program will reduce inflated visitor visa processing times and delays while prompting a resurgence of travellers from emerging economies around the globe and ensuring the success of marquee international events, including FIFA World Cup 2026.

Other areas that require focus include…

• Canada’s tourism workforce: Strategic public investment is required to promote and enhance the flow of Canada’s youth, Indigenous, newcomer, and temporary resident workforce into tourism occupations.
• Environmental sustainability: The tourism sector can play a leading role in Canada’s green transition with an investment in the domestic production of biofuels and green solutions for Canada's transportation network.
• Canada’s cruise-ship sector: A dedicated strategy is needed to fill gaps in community infrastructure and expand cruise-ship clearance in order to leverage the economic impact of international passengers.

As tourism is a significant contributor to the economic and social fabric of communities Canada-wide, the federal government must fully embrace a comprehensive approach to support tourism growth in Budget 2025.