New research for Destinations International, developed with EY-Parthenon, shows inbound visitation is a powerful driver of Canadian goods and services exports. Destinations International (DI) newly released The Impact of the Visitor Economy on Canadian Exports report brings the visitor economy and its impact into sharp focus at a time when Canada is engaged in a national conversation about competitiveness, productivity, trade diversification and evolving global market relationships. While tourism is frequently discussed in terms of jobs and visitor spending, this study demonstrates that its impact may extend beyond hospitality to serving as a strategic enabler of trade, investment and broader economic development.
“The visitor economy is not a standalone sector; it is a platform for economic growth,” said Don Welsh, president & CEO of Destinations International. “This research validates what destination leaders have long understood in practice: that attracting international visitors helps build relationships, strengthen Canada’s global reputation and create the conditions that drive exports, investment and long-term prosperity for communities across the country.”
The report finds a statistically significant relationship between inbound visitation and export performance. Using a multi-decade, panel-data econometric analysis covering more than 20 years of data, the study shows that a 1% increase in international visitors to Canada is associated with over CAD$1bn in additional Canadian goods and services exports over a two-year period, beyond the direct export of tourism services themselves.
These impacts are driven by multiple reinforcing dynamics. International visitors create commercial relationships that mature into trade over time. Conferences and business events act as platforms for deal-making, partnership development and sector growth. Visitor-driven air service development establishes trade corridors that benefit export-oriented industries, while strong destination brands may enhance national reputation, trust and market access for Canadian firms abroad.
“Our report suggests that the visitor economy can be a strategic driver of Canada’s broader economic performance,” says Mauricio Zelaya, EY-Parthenon Canada Partner & National Economics Leader. The study suggests that destinations successful in attracting visitors could also be better positioned to attract business capital, skilled talent, new residents and the expansion of export-driven industries.
The full report is available online.