The global spread of tourism in the past decades has made it one of the fastest growing economic sectors in the world.
Tourism at a Glance
- In 2000, there were 674 million tourism arrivals. By 2014, there were 1.1 billion, and by 2020, international tourism arrivals are expected to reach 1.4 billion.1
- Domestic tourism (tourists exploring their own country) is also significant. In Canada, it accounts for about 80% of revenue derived from tourists.
- Canada’s tourism sector is composed of five distinct but related industry groups: accommodation, food and beverage services, recreation and entertainment, transportation and travel services.
- Businesses in these industries, such as restaurants and recreation facilities, serve both tourists and many local residents as well.
Tourism Labour Highlights
- The 2016 census counted 1.8 million Canadians employed in the tourism sector—that’s 10.6% of all employed individuals in Canada. There were 721,600 jobs in Canada directly attributable to spending by tourists.2
- The food and beverage services industry is the largest employer among tourism businesses, accounting for over 50% of tourism jobs.
- Tourism provides significant employment for young people. The 2016 census showed that 560,000 youth (age 15—24) worked in tourism. They make up 31% of Canada’s tourism workforce, compared to only 13% of the overall labour force and population.
- The tourism sector is a significant source of employment for newcomers to Canada. The 2016 census showed that 28% of tourism employees were immigrants or non-permanent residents.
Labour Shortage Impact
- The potential growth of tourism is so great that the labour force may not be able to accommodate all future growth.
- When spending by tourists and non-tourists is calculated, spending in Canada’s tourism sector could rise from nearly $220 billion in 2015 to over $338 billion in 2035 (using inflation-adjusted 2012 dollars).
- Such growth will require 504,000 jobs be created between 2015 and 2035.
- Current rates of labour force growth in the tourism sector suggest that 433,000 jobs can be created between 2015 and 2035 based on the number of workers available to fill those jobs. While this is impressive growth, it does limit the full expansion of Canada’s tourism sector.
- In 2015, the Job Vacancy and Wage Survey showed there were 22,320 vacant full-year jobs in Canada’s tourism sector.
- By 2035, the tourism sector could see 93,000 full-year jobs go unfilled, equal to $10.1 billion of potential revenue.