Question Period Note: NEW FEDERAL TOURISM GROWTH STRATEGY

How will the new Federal Tourism Growth Strategy support the tourism sector?

• In July, the Government of Canada launched a new Federal Tourism Growth Strategy—Canada 365: Welcoming the World. Every Day.

• The Strategy sets out the following priorities: investing in Canada to compete in a global market; embracing recreation and the great outdoors; partnering to grow Indigenous tourism; attracting more international events; and improving coordination with a Ministerial Tourism Growth Council.

• The Strategy builds on Canada’s inherent strengths and unique qualities while using a whole-of-government approach to realize the full potential of the tourism sector.

• The Strategy reflects over 400 engagements with tourism stakeholders, provincial and territorial counterparts, and Indigenous tourism operators.

• Prior to the COVID-19 pandemic, Canada’s tourism sector enjoyed several years of tremendous success. Tourist arrivals grew by approximately 3.5 percent annually over the decade leading up to 2019. In that year, Canada welcomed a high of 22.1 million tourists, the third consecutive year of record-breaking arrivals. Tourism outpaced the growth of the Canadian economy in each of the five years leading up to 2019, and achieved greater overall growth over the previous 10 years.

• While the visitor economy does face significant headwinds (i.e., labour shortages, inflation, geopolitical uncertainties), the tourism sector is experiencing a strong recovery, owing to pent-up demand, the elimination of travel restrictions, and increased business-related travel.

• Tourism GDP in Canada increased 47 percent from $5.4 billion to $7.9 billion during the first quarter of 2023, compared to the same time period in 2022. Jobs directly attributable to tourism increased by almost 3 percent in the first quarter of 2023 from 638,000 to 655,000 compared to the fourth quarter of 2022. The industry has now recovered 96 percent of the jobs that existed during the first quarter of 2019.

• This Strategy sets out a vision for Canada’s tourism industry to increase growth, investment, and stability and help to drive Canada’s visitor economy to the next level of international success. It is a strategy that all tourism partners can build upon.

• To advance its priorities, the Strategy includes funding from Budget 2023 and 2022 for:
o $108 million Tourism Growth Program to support the development of local tourism projects and events;
o $55 million investment in the Trans Canada Trail to expand recreation resources and outdoor activities;
o $20 million for the Indigenous Tourism Fund to help the Indigenous tourism industry recover from the pandemic and position itself for long-term, sustainable growth; and,
o $50 million to assist Destination Canada’s efforts in bringing more major business conferences, conventions, tradeshows, and other events to Canadian venues.

• The Ministerial Tourism Growth Council will improve coordination among governments and will help transform the Strategy into concrete actions by elevating the visitor economy as a priority across federal departments.