March 10, 2008

 

TOURISM IN ONTARIO

Tourism is an important economic driver and community builder for Ontario.  In 2004: 

• Ontario’s tourism sector generated $6.7 billion in foreign exchange for the province
• Tourism contributed $20.4 billion to Ontario’s GDP
• Tax revenues from tourism reached $9.2 billion, including $3.5 billion to the province
• Tourism supported 213,500 jobs in front-line tourism businesses and 109,100 jobs in other businesses

Tourism businesses are located throughout the province:

• Almost 162,000 businesses provide goods and services for tourists, representing 19 per cent of  the total number of businesses in the province
• Tourism businesses include: accommodation, food & beverage, recreation & entertainment, transportation, tourism-related retail, car rentals, tour operators and travel agents
• More than 90 per cent are small and medium sized businesses with fewer than 20 employees
• Tourism is the largest employer for Ontario’s youth and the largest seasonal employer*

*Source: Statistics Canada, Labour Force Survey

 

WHERE VISITORS COME FROM

The total number of visitors to Ontario in 2004 was 118.3 million.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source:  Canadian Travel Survey and International Travel Survey, Statistics Canada

 

 

THE GLOBAL MARKETPLACE

 

• There were 846 million international tourist arrivals in 2006*
• The United Nation’s World Tourism Organization forecasts that international arrivals are expected to reach about 1.6 billion by 2020
• New destinations have opened up, increasing competition (e.g., Asia, Eastern Europe)
• New source markets have opened up, presenting opportunities (e.g., China, India, Mexico, South Korea)
• The Internet has made travel choices easier to make and book, increasing competition

*Source: World Tourism Organization (WTO)

 

MAKING ONTARIO TOURISM MORE COMPETITIVE

To fully realize the opportunities that tourism can provide to Ontario, the McGuinty government is undertaking a competitiveness study, chaired by Greg Sorbara, to examine the tourism industry and develop an action plan to revitalize and grow tourism in Ontario.

Key areas to be reviewed include:

• Economic Factors – analysis of economic factors impacting the tourism industry to identify the greatest opportunities to improve the economic success of the industry;
• Market Identification – analysis of potential markets for Ontario’s tourism industry to identify those with greatest potential to deliver a high economic impact;
• Product Development – analysis of Ontario’s tourism product, including niche tourism products, barriers to creating new tourism product, strategies to increase investment;
• Marketing and Promotion – evaluation of Ontario’s tourism marketing, at the national, provincial and local level;
• Infrastructure – review of public infrastructure, including rail, road, air transportation and border issues and how they affect the potential of Ontario’s tourism industry.
• Workforce – analysis of labour market issues affecting service quality, including training for tourism industry employees and labour supply issues affecting the success of the industry;
• Industry Structure – evaluation of current tourism industry structure to identify potential improvements to more effectively advance the industry’s interests;
• Role of Government – review and recommend the appropriate role for government at all levels to provide an environment that supports a strong tourism industry;
• Regulatory Environment– evaluation of regulatory issues that impact the industry from all levels of government.

 

 

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• News Release

 

Contacts:

Alicia Farrow, Minister’s Office, (416) 325-4543
Gary Wheeler, Communications Branch, (416) 325-8391