Federal Budget & Consultations

The tourism sector is a key economic driver, contributing $130 billion annually to the Canadian economy (approximately 2% of Canada’s GDP) and supporting growth across every riding in the country. A cornerstone of the sector is Canada’s hotel industry, which generates $30 billion in annual revenue, $12 billion in government taxes across all three levels, and employs over 320,000 Canadians. Canadian hotels are vital contributors to communities across the country, representing a substantial capital asset value of approximately $74 billion—with even more projected in future development. These investments are closely tied to the local economies and social fabric of their regions. In many rural and remote areas, hotels provide housing for employees, lifting pressure on the local housing stock. The majority of Canadian hotels—about 85%—are small and medium-sized businesses, many of which are family-owned, whether operating under a brand or independently. Despite a global travel boom and positive interest in Canada from travellers and investors alike, we are falling short on our potential. Destination Canada estimates the national economy risks leaving $20 billion on the table annually by 2030 without improved competitiveness. To fully realize Canada’s tourism growth potential, Canada must address major barriers, including improving tourism competitiveness, fostering a competitive tax and investment climate, and resolving workforce challenges in targeted regions.

With its peaceful reputation, beautiful scenery, and welcoming people, Canada can become a top-rated destination globally. However, there are significant barriers to unlock Canada’s potential including: critical workforce and housing shortages, a lack of investment, and diminishing international competitiveness.

With its peaceful reputation, beautiful scenery, and welcoming people, Canada can become a top-rated destination globally. However, there are significant barriers to unlock Canada’s potential including: critical workforce and housing shortages, a lack of investment, and diminishing international competitiveness.