In its most recent Tourism Outlook: Unlocking Opportunities for the Sector report, Destination Canada said on Tuesday that overall tourism income is expected to surpass 2019 levels and reach $109.5 billion by the end of 2023. This shows that the tourism industry has recovered from the COVID-19 epidemic one year sooner than expected. Despite reaching a stop in 2020, the tourist sector is predicted to rebound at a quicker rate than the overall economy, with a 5.8% growth rate, demonstrating its tenacity and significance to the nation’s economic life.

Although this is encouraging news, it is crucial to understand that the recovery has not been uniform across regions or subsectors. Given their existing debt loads and inflationary pressures, the difficulty for tourism firms lies in achieving profitable expansion.

According to the analysis, the tourism industry has the potential to develop at a rate that generates $160 billion in revenue by 2030, but capacity issues are preventing the industry from reaching its full potential. Adopting a transformative path is necessary. If nothing changes, tourism will continue on its long-term track, reaching a potential of only $140 billion—a figure that, even accounting for inflation, shows no discernible growth.

Chief Data and Analytics Officer for Destination Canada, Meaghan Ferrigno, stated, “We face a clear choice at this critical juncture.” “There is more to the $160 billion and $140 billion gap than just revenue. It’s about maximizing potential wherever and whenever it exists, generating steady work, and improving societal well-being. Crucially, smart growth is what propels genuine wealth for tourism-related enterprises throughout the nation.”

A revolutionary strategy is put forth by Destination Canada to generate an extra $20 billion in revenue per year by 2030. The paper lists seven crucial levers that will improve Canada’s competitiveness and deal with issues. These include developing the workforce, expanding air access, drawing in higher-yield visitors, releasing capacity outside of peak season, and supporting innovation and investments in the sector.

Important Report Highlights:

In 2023, tourism revenue will exceed pre-pandemic levels: Tourism spending will exceed pre-COVID-19 levels in 2023, hitting $109.5 billion despite inflationary challenges. Domestic activity has driven revenue recovery, with the economy on course to achieve 104% of 2019 levels by the end of 2023.

Opportunities constrained by capacity: As we look ahead to 2024 and beyond, expansion opportunities abound, but challenges abound as we enter a fiercely competitive global marketplace where we are all contending for the attention of travelers. Travel demand is expected to increase by 30% by 2030, outpacing our capacity to host during peak seasons and restricting Canada’s economic potential.

$160 billion Potential: According to the analysis, the tourist industry has a $160 billion revenue potential by 2030, but only if a transformational path is chosen that resolves obstacles and adjusts demand to change how growth occurs.

Closing the $20 billion opportunity gap: Destination Canada proposes a transformative path to secure an additional $20 billion in annual revenue by 2030, resulting in real prosperity for tourism businesses across the country, a 14% increase in tourism-generated GDP, 84,000 more jobs, and $5.3 billion more in tax revenue for all levels of government.

Transformational path: Closing the $20 billion opportunity gap will require industry-wide collaboration on seven key levers: revenue and yield growth, brand leadership, investment, access, workforce and digital readiness, environmental sustainability, and Canadian support.