Question Period Note: INTERNATIONAL TOURISM

How is the Government of Canada supporting the return of international visitors to Canada?

• Visitors to Canada generate billions of dollars in revenue for the Canadian economy, strengthen our commercial and social ties with other countries, and support Canadian businesses.

• The Government of Canada has launched a new Federal Tourism Growth Strategy – Canada 365: Welcoming the World. Every Day – that builds on Canada’s inherent strengths to ensure that Canada remains a destination-of-choice for international travellers.

• To propel the sector to a new level of international success, the Government of Canada is supporting the sector through a $108 million Tourism Growth Program; $50 million to bring more international events to Canada; and $20 million to position Indigenous tourism for long-term growth.

• In the years 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 record 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. The tourism sector, however, was the first and the hardest hit sector by the COVID-19 pandemic, and the dramatic decline of international travellers coming into Canada had a severe impact on Canada’s visitor economy.

• Of the $105 billion generated in revenue from tourism in 2019, approximately $29 billion was from international visitors. In 2022, of the $94 billion generated in tourism revenue, $20 billion was from international visitors.

• International tourist expenditures increased 127 percent from 1.2B to 2.7B in Q1 2023 compared to the same time period in 2022, but still remains 17 percent lower than Q1 2019 when expenditures were 3.2B.

• In June 2023, approximately 2.3 international tourists visited Canada, marking a 43 percent increase from the same time period in 2022. Furthermore, this represents the sector regaining 83 percent of visitors from the same time period in 2019.

• On August 10th, China’s Ministry of Culture and Tourism announced a third list of approved destination countries permitted for outbound group tourism. Notably, Canada was not included on this list, and is among only four other countries (Syria, Sudan, North Korea, and Ukraine) yet to have its Approved Destination Status (ADS) reinstated.

• Canada has a top-ranking and world-renowned brand, representing safety, inclusivity, and respect for human rights. Canada’s ranking in the Nation Brands Index 2022 is third in the world.

• Canada is also well-known for its natural spaces, authentic Indigenous experiences, and environmental commitment and stewardship. 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, Canada’s growing craft breweries and wineries, and Canada’s regulated cannabis industry.

• Currently, the majority of international tourists to Canada visit during the peak summer months, and there is an opportunity to expand Canada’s tourism season into winter and shoulder months by enhancing Canada’s brand and presence in target markets.

• To this end, the federal government invests $96.5 million annually in Destination Canada—Canada’s national tourism organization and crown corporation—to promote Canada's brand and assets internationally and to attract significant business events.