The Economy, Eh? How Canada Shapes Tourism (and Vice Versa)

Oh, Canada: Business, Tourism, and Economic Truths
- The Economy, Eh? How Canada Shapes Tourism (and Vice Versa)

If the Canadian economy were a house, tourism would be the sunny window seat everyone underestimates. Sure, the big-ticket items like natural resources and manufacturing get all the attention, but tourism quietly brings in billions, strengthens communities, and puts Canada on the map—literally.

But it’s not a one-way street. Just as tourism supports the economy, the economy shapes how tourism develops, thrives, or struggles. From currency fluctuations to public investment, the relationship between Canada’s economy and tourism is as intertwined as maple syrup and pancakes.

In this post, let’s unpack how the economy influences tourism and how tourism gives back in ways you might not expect.

The Economy’s Impact on Tourism

1. Exchange Rates: A Blessing and a Curse

When the Canadian dollar is weak, international travellers flock here to take advantage of “cheap” vacations. But that same exchange rate can make it tougher for Canadians to travel abroad, putting pressure on domestic tourism.

2. Public Investment (or Lack Thereof)

Tourism thrives when governments invest in infrastructure, marketing, and support programs. From building better highways to funding national campaigns like “Keep Exploring,” public spending directly impacts how the world views—and accesses—Canada.

3. Regional Disparities

Economic health varies widely across provinces, and so does tourism’s success. Alberta’s oil-driven economy influences tourism differently than the wine regions of British Columbia or the rugged beauty of Newfoundland.

How Tourism Shapes the Economy

1. Jobs, Jobs, Jobs

Tourism is one of Canada’s largest employers, offering jobs across a spectrum of skill levels. From seasonal guides to full-time hospitality managers, the industry contributes significantly to workforce participation.

2. Supporting Small Businesses

Tourism is the lifeblood of many small businesses, from boutique inns to local tour operators. These businesses don’t just make money—they keep communities vibrant and unique.

3. Tax Revenue Galore

Every hotel stay, guided hike, and souvenir sale contributes to tax revenue. That money goes back into the economy, funding everything from healthcare to education.

The Balancing Act: Opportunities and Challenges

1. Sustainability vs. Growth

While tourism drives economic growth, it also puts pressure on natural resources and communities. Striking a balance between attracting visitors and preserving what makes Canada special is an ongoing challenge.

2. Post-Pandemic Recovery

COVID-19 hit tourism hard, but it also highlighted its importance. As borders reopened, the focus shifted to rebuilding stronger and more resilient tourism networks.

3. The Need for Recognition

Tourism isn’t just a nice-to-have; it’s a cornerstone of Canada’s economy. Yet, it’s often left out of major economic discussions. Advocating for its inclusion is key to unlocking its full potential.

An Interdependent Relationship

The Canadian economy and tourism are like two sides of the same coin. Each shapes the other in ways that are both subtle and significant. Recognising this dynamic is crucial—not just for the industry, but for everyone who benefits from a thriving, vibrant Canada.

As someone who has spent years immersed in the tourism world, I can tell you this: tourism isn’t just a part of the economy—it’s a reflection of it. And when we invest in one, we elevate the other.

Yours in tourism, innovation and startups,

Founder & CEO
Roamlii