Canada's Bold Tourism Expansion: Unveiling the Tourism Growth Program for Economic Development

Tourism stands as a vital pillar of Canada's economic landscape, acting as a catalyst for growth in communities nationwide. In 2022, the sector played a pivotal role, supporting nearly two million jobs and contributing a substantial $38 billion to Canada's GDP. Following a challenging period marked by some of its toughest years in history, the Canadian tourism industry is poised for significant expansion. Experts anticipate a substantial increase in its economic contribution in the coming years, with the Federal Tourism Growth Strategy aiming for a 40% boost to the sector's GDP share by the end of the decade.

In acknowledgment of the burgeoning growth prospects, the Honourable Soraya Martinez Ferrada, who serves as the Minister of Tourism has recently introduced the Tourism Growth Program (TGP) today on November 20,2023. This program, backed by $108 million in federal funding, is designed to foster growth in Indigenous and non-Indigenous communities, small businesses, and not-for-profits. The initiative aims to position Canada as a premier destination by directly investing in projects that showcase the country's diverse offerings.

Over the next three years, the TGP will be executed by Canada's seven regional development agencies, channeling funding directly to businesses and organizations. Aligned with the Federal Tourism Growth Strategy, the program will prioritize projects that support sustainable tourism, outdoor experiences, Indigenous tourism, seasonal expansion, and tourism in rural and remote areas. The overarching goal is to diversify regional economies and stimulate economic growth.

Crucially, the TGP places a significant emphasis on promoting Indigenous tourism, reserving 15% of its funds for this purpose. Recognizing the importance of Indigenous tourism in creating jobs, fostering opportunities, and contributing to Canada's unique identity, the government is actively collaborating with First Nations, Inuit, and Métis communities to facilitate its growth. Beyond economic benefits, Indigenous tourism plays a pivotal role in advancing self-determination for communities and fostering reconciliation.

The TGP represents a key component of the Government of Canada's broader efforts to nurture the growth and resilience of the tourism industry. Complementing this initiative, Minister Ferrada recently announced the launch of the Indigenous Tourism Fund's Micro and Small Business Stream, injecting $10 million in direct support for Indigenous tourism operators. Other supports include the $500 million Tourism Relief Fund established during the pandemic, increased funding to Destination Canada, support for major international events like the 2026 FIFA World Cup, investments in the Trans Canada Trail, and strategic partnerships with other governments and the private sector to enhance tourism offerings and attract more visitors to Canada.

Quick Facts:
- The $108 million Tourism Growth Program was announced in Budget 2023.
- The program complements supports for the tourism industry provided through other federal, provincial, and territorial programs.
- In the first eight months of 2023, Canada welcomed 12.6 million international tourists, marking a 54% increase from the same period in 2022.
- In 2022, the tourism industry supported 1.87 million jobs, recovering to 90% of the number of jobs seen in 2019.
- In the same year, tourism contributed nearly $38 billion to Canada's GDP, generated close to $94 billion in revenue for businesses, and accounted for almost 13% of service exports.

Source: Government of Canada launches new Tourism Growth Program - Canada.ca