Frequent mention is made about tourism being Canada’s largest service export, representing $41.2 billion of Canada's GDP in 2017. The term "export" commonly refers to natural products that are sold and shipped to other countries. So why is tourism described as a service export?

Similar to selling and sending physical goods to other countries, tourism exports represent experiences that travellers bring back to their country after paying for them, such as hotels, meals, transportation, tours, attractions/activities etc. Although items are purchased within Canada, they are purchased with foreign currency, which in turn contributes to the national economy.

Still, tourism remains the only Canadian export that is not zero-rated (tax removed). Canada is also one of the few countries in the world that charges tax on foreign visitors buying tourism products.

In our recent pre-budget submission for the 2019 federal budget, we recommended reducing taxes paid by international visitors to Canada through removal of GST on tourism products sold abroad to foreign visitors. Tourism needs policies that help Canada successfully compete on the international stage. TIAC’s President and CEO will be appearing before the Parliamentary Finance Committee on September 26 advocating for progressive policies to help bolster the tourism industry.  It is high time that Canada recognizes tourism as a key economic driver and job creator for the country. TIAC will be making the case once again during the Parliamentary Finance Committee’s pre-budget consultations.